Global ETF News Older than One Year
IOSCO consults on order routing incentives in ongoing effort to protect investors
December 21, 2016-The Board of the International Organization of Securities Commissions (IOSCO) published today the Report on Order Routing Incentives for public consultation.
The report provides an overview of the practices used by market regulators regarding incentives for order routing that may influence how intermediaries treat their clients.
Source: IOSCO
The hopes and fears around bond ETFs
December 21, 2016--Advocates say they add liquidity while sceptics point to potential for compounding volatility.
You only need to look back to the tumultuous November in markets to see the growing significance of exchange traded funds that track bonds.
Source: FT.com
IOSCO identifies the risks to retail investors of OTC leveraged products
December 21, 2016--The International Organization of Securities Commissions (IOSCO) issued today a report that identifies various risks related to the marketing and sale of complex OTC leveraged products to retail investors, and describes how some regulators are responding to the challenges these products present.
The Report on the IOSCO Survey on Retail OTC Leveraged Products analyses offers of rolling-spot forex contracts, contracts for differences and binary options to retail investors. The fact-finding report is based on a survey of 21 IOSCO members regarding their experiences with leveraged OTC products, the firms that sell them, and current regulatory and supervision frameworks.
view the Report on the IOSCO Survey on Retail OTC Leveraged Products-final report
Source: IOSCO
ETF Securities-Investment Insights December 2016-Electric vehicles and the impact for precious metals
December 20, 2016--Summary
Demand for lithium-ion batteries from battery electric vehicles (BEVs) may impact platinum and palladium autocatalyst demand, but this is a long term strategic risk.
Low energy prices, pending infrastructure build-out, and further need for energy storage capacity may slow large scale adoption in near and medium term of electric vehicles.
Palladium's fundamentals remain attractive as supply deficits are expected to continue and widen in the coming years.
Source: etfsecurities.com
ETFGI reports assets invested in ETFs/ETPs listed globally reached a new record high of 3.445 trillion US dollars at the end of November 2016
December 20, 2016--ETFGI,the leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, today reported assets invested in ETFs/ETPs listed globally reached a new record high of US$3.445 trillion at the end of November 2016.
Net new flows gathered by ETFs/ETPs in November were very strong at US$59.02 billion during the month, marking the 34nd consecutive month of net inflows, according to preliminary data from ETFGI's November 2016 global ETF and ETP industry insights report.
Source: ETFGI
First Bridge- 'ETF 20/20'-Global ETF Snapshot Report
December 20, 2016--Our monthly 'ETF 20/20' report briefly summarizes recent Exchange Traded Fund (ETF) trends globally. It uses data from the First Bridge ETF database that includes all global ETPs.
Global ETP assets were $3.49T at the end of November. US equity ETPs saw significant asset growth due to a post-election bounce and rotation into US equities.
The US Fed raised the federal-funds target rate by a quarter percentage point. Large ETFs representing asset classes traditionally considered rate sensitive (Utilities, Dividends, REITs) have seen positive returns but negative flows since the election.
It appears the Trump administration may challenge prevailing US orthodoxy on trade and political partnerships. Russia (RSX) is up 12.3% while Mexico (EWW) and China A/B Shares (GXC) are down 8% and 5.1% respectively since the US elections.
There were over 75 new ET Ps listed globally across multiple markets.
Gold has seen significant declines in the trailing 1 month as yields have gone up, though the asset class could generate renewed interest if inflation increases. Value significantly outperformed growth in the US equity space over the trailing I-month.
Source: First Bridge Data
BlackRock ETP Landscape November 2016
December 20, 2016--INDUSTRY HIGHLIGHTS
Global ETP flows surged in November post-election to resume record year-to-date pace.
Global ETPs gathered $56.0bn in November, the best month since December 2014, following Donald Trump's surprise victory in the U.S. presidential election with flows fueled by U.S. equities.
U.S. equity flows surged in the month, garnering new monthly flow records in small-caps, financials and industrials as well as strong flows to large-caps on hopes for new stimulus and favorable policies
Fixed income remains on record year-to-date pace, with record monthly flows in U.S. TIPS funds of $2.4bn while conventional Treasuries shed ($2.0bn), dampened by prospects for higher rates in the U.S
Broad emerging markets (EM) equities and emerging markets debt shed ($3.2bn) and ($3.3bn), respectively, as the U.S. dollar strengthened
Commodity fund flows were marked by sharp outflows from gold funds of ($4.5bn)
Source: BlackRock
Use of artificial intelligence technology in financial services to grow: report
December 19, 2016--Financial services firms are beginning to deploy artificial intelligence technologies to make themselves more efficient and better than their peers-and those without a strategy should develop one now, according to a new report.
"It is the early days of AI in the financial services industry, but the technology is increasingly going to be more important to organizations to innovate and remain competitive," said the report by tech firm Narrative Science.
Source: investmentnews.com
ETF Securities Weekly Flows Analysis- Investors took record contrarian positions as the US dollar rallied
December 19, 2016--Investors cast doubt on US Dollar rally as they place US$99mn in short USD long EUR ETPs
2017 will likely continue to benefit cyclical and alternative ETPs such as copper and robotics as tail
risks decline in the US
Headwinds continue for oil and gold ETPs as oil prices remain near 6 month high while gold heads towards its lowest level in 2016
Source: etfsecurities.com
Smart beta ETFs have hedge funds in their sights
December 19, 2016--ETFs that focus on investing 'factors', or characteristics of asset classes, pose a threat.
Source: FT.com
