Global ETF News Older than One Year
EDHEC Risk Institute releases major new research on misconceptions in smart beta investing
July 21, 2016--EDHEC Risk Institute has released a major new research publication on misconceptions in smart beta investing. The research reviews ten common but mistaken claims about smart beta that present risks for investors and sheds light on underlying issues.
The ten misconceptions, in three separate areas of smart beta performance and risk, are the following:
Performance drivers
The hiding game: "smart beta generates alpha"
The monkey portfolio claim: "anything beats cap-weighted market indices"
The value and size myth: "all smart beta performance comes from value and small-cap exposure"
The rebalancing fantasy: "smart beta outperforms because it trades against mean reversion"
view the Ten Misconceptions in Smart Beta Investing report
Source: EDHEC Risk Institute
ERI Scientific Beta Newsletter-14, July 2016
July 20, 2016--Pay For What You Get
From June 2016, ERI Scientific Beta, the smart beta index provider offshoot of EDHEC-Risk Institute, has been offering a revolutionary "pay for what you get" approach to index pricing that disrupts the traditional model of fixed fees on assets under management and enables investors to relate their fees directly to smart beta index performance.
Source: EDHEC-Risk Institute
Deutsche Boerse reaches 55.5 percent share approval on LSE deal
July 20, 2016--Deutsche Boerse (DB1Gn.DE) has won further backing among its shareholders for its planned merger with the London Stock Exchange Group (LSE.L), with the German exchange operator reporting a 55.5 percent approval rate on Wednesday.
Deutsche Boerse had asked its shareholders to back the $27 billion (20.5 billion pounds) merger and last week lowered the acceptance threshold to 60 percent from an earlier 75 percent of its shareholders.
Source: Reuters
Infographic-The Top 10 Emerging Technologies of 2016
July 19, 2016--Sometimes the world is not yet ready for a new technology to enter the fray.
Virtual reality, for example, sat on the sidelines for many years. The industry went into hibernation around the time of the Dot Com Bust, and it has only recently re-emerged with promise.
Source: visualcapitalist.com
WEF-New Report: Mining Sector Can Help Achieve Sustainable Development Goals
July 19, 2016--Report will help the industry to map its roles, responsibilities and opportunities across the 17 Sustainable Development Goals
Pioneering atlas demonstrates how the mining industry can ensure that social and economic benefits of mining are widely shared and environmental impact minimized
The report maps the relationship between mining and the SDGs by using examples of good practice in the industry and existing knowledge and resources in sustainable development
Large-scale mining has the potential to play a critical role in helping to achieve the Sustainable Development Goals (SDGs) in resource-rich countries, according to a new report published today on the occasion of the UN High-Level Political Forum in New York. The report, Mapping Mining to the Sustainable Development Goals: An Atlas, is a joint effort of the United Nations Development Programme, the World Economic Forum, the Columbia Center on Sustainable Investment and the Sustainable Development Solutions Network.
Source: WEF(World Economic Forum)
IMF Cuts Global Growth Forecasts on Brexit, Warns of Risks to Outlook
July 19, 2016--Brexit causes "substantial' increase in economic, political, institutional uncertainty
Global forecast for 2017 cut by 0.1 percentage point, to 3.4 percent
If not for Brexit, global forecast would have been slightly higher
The International Monetary Fund cut its forecasts for global economic growth this year and next as the unexpected U.K. vote to leave the European Union creates a wave of uncertainty amid already-fragile business and consumer confidence.
view the World Economic Outlook-Uncertainty in the Aftermath of the U.K. Referendum
Source:IMF
Industry increasingly questions ETF liquidity
July 18, 2016--Exchange-traded funds' low fees and liquidity have traditionally been their greatest selling points, but industry experts are questioning how ETFs can be more liquid than their underlying portfolios.
The ETF industry is not prepared for a rapid exit by investors.
Source: Investmentnews.com
Bond ETF funds attract $124bn this year
July 15, 2016--Yield-hungry investors buoyed by the prospects of further monetary easing have invested $124bn in bond exchange traded funds globally this year.
Brexit has meant interest rates are expected to be lower for longer, forcing investors to search for safe assets with a non-negative yield, creating massive demand for bonds that has pushed sovereign debt yields to new lows.
Source: newsoninvest.com
BlackRock Addressing Market Liquidity
July 15, 2016--Post-Crisis, the fixed income markets have adapted to changes due at least in part to regulatory reforms intended to enhance the safety and soundness of the global financial system.
Monetary policy, record new issuance, and financial regulatory reform have contributed to reduced dealer inventories and lower bond turnover. Issuers have been motivated by historically low interest rates to issue new debt in record amounts, which means that there are now many more bonds in the bond market.
Source: BlackRock
IEA releases Oil Market Report for July
July 13, 2016--Record pumping rates in the Middle East and recovering flows in Nigeria consolidate OPEC market share
Global oil supplies rose by 0.6 mb/d in June, to 96 mb/d, after outages curbed OPEC and non-OPEC supplies in May, while production was 750 kb/d below as higher OPEC output only partially offset non-OPEC declines, the newly released IEA Oil Market Report (OMR) for July informs subscribers. Non-OPEC supplies are set to decline by 0.9 mb/d in 2016, to 56.5 mb/d, before rising 0.2 mb/d in 2017.
Source: IEA
