Americas ETP News
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U.S. passive stock funds back in demand as investors seek steadier returns
July 16, 2020--U.S. passive equity funds have started to witness inflows after a two-month hiatus as investors flock to rising equity markets, but prefer shadowing indexes to picking stocks.
Data from fund research firm Refinitiv Lipper showed passive equity funds, which are mutual funds that mirror stock indexes, attracted $860 million in June, after a combined outflow of $24.5 billion in the previous two months.
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Source: reuters.com
American Century Investments First To Launch Active ESG Exchange Traded Funds Through NYSE Structure
July 16, 2020--To provide additional choices for investors seeking actively-managed Environmental, Social and Governance (ESG) strategies in a lower-cost ETF vehicle, American Century Investments today launched two active ESG ETFs utilizing the New York Stock Exchange (NYSE) AMSSM (Actively Managed SolutionSM), the first-time use of the new active ETF structure.
Geared to financial professionals, American Century Sustainable Equity ETF (ESGA) and American Century Mid Cap Growth Impact ETF (MID), with total expense ratios of 0.39% and 0.45%, respectively, will use the global asset manager's time-tested stock selection processes with an ESG overlay.
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Source: American Century Investments
LGBTQ Loyalty Re-Naming of Wholly-Owned Subsidiary Supports Broader Diversity & Inclusion Focus
July 15, 2020--LGBTQ Loyalty Holdings, Inc. (OTC PINK: LFAP) ("LGBTQ Loyalty" or "the Company"), a diversity and inclusion-driven financial methodology and data company that quantifies corporate equality alignment with the LGBTQ community and other equality-interest groups, is pleased to announce the re-branding of its Loyalty Preference Index, Inc. (LPI) wholly-owned division to now be called Advancing Equality Preference, Inc.
The decision is being made to support the expansion of the company’s diversity and inclusion financial product portfolio
"The timing of the renaming of LPI to Advancing Equality Preference, Inc. (AEP) reflects the unprecedented times we live in during the midst of a global pandemic and the recent unrest in race relations", said Bobby Blair, CEO of LGBTQ Loyalty. "We believe AEP can leverage this unique time in history as a pivotal point to support the advancement of equality irrespective of sexual identity, gender, race, ethnicity, disability or religious belief."
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Source: LGBTQ Loyalty Holdings, Inc.
Credit Ratings, Procyclicality and Related Financial Stability Issues: Select Observations
COVID-19 Market Monitoring Group*
July 15, 2020--On April 24, the SEC announced the formation of an internal, interdisciplinary COVID-19 Market Monitoring Group.[1]
This temporary, senior-level group was formed to assist the Commission and its various divisions and offices in (1) developing Commission and staff analyses and actions related to the effects of COVID-19 on markets, issuers and investors-including in particular our long-term Main Street investors, and (2) responding to requests for information, analyses and assistance from fellow regulators and other public sector partners on market matters arising from the effects of COVID-19.
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Source: SEC.gov
Investors yank $500m from super-leveraged US tech fund
July 14, 2020--Record weekly outflow from ETF known as 'TQQQ' suggests wariness after momentous rally
An exchange traded fund designed to amplify the moves of red-hot US tech stocks has just suffered its worst ever week of outflows, suggesting that investors are growing wary of highly stretched valuations.
Investors pulled $491m from the ProShares UltraPro QQQ ETF last week in the biggest weekly withdrawal since the ETF launched a decade ago, according to data from Bloomberg.
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Source: FT.com
Fee War Hit Limit With Demise of ETF That Paid You to Invest
July 14, 2020--First ETF offering to pay investors has now started to charge
Another zero-fee fund has shut as focus shifts to returns
The wave of cost-cutting that has been sweeping the more than $6 trillion global market for exchange-traded funds for the past two years may finally have reached its limit.
In the space of a few weeks, the first and only fund that paid people to invest has switched to a new owner and started to charge, while one of the few "zero-fee" ETFs has been shut down completely.
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Source: Bloomberg
Global X ETFs Expands Thematic Offering with Launch of Education ETF (EDUT)
July 14, 2020--Global X ETFs, the New York-based provider of exchange-traded funds (ETFs), today announced the launch of the Global X Education ETF (EDUT). The fund will join the firm’s Thematic Growth family within the People & Demographics suite, which is driven by changing consumer preferences and demographic shifts around the world.
With the rise of remote working and automation, competition for jobs and the skills necessary for differentiation are continuing to grow rapidly. Across the Organisation for Economic Cooperation and Development (OECD) member countries in 2018, 85% of individuals with tertiary educations were employed, compared with 76% of those with secondary educations (high school), and 59% of those with below secondary educations. The relationship between education, job security, and social mobility is clear to billions around the world, who are increasingly prioritizing education from adolescence through retirement. As such, global education revenues are expected to grow from $6t to $10t over the coming decade.
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Source: Global X
Three US banks set aside $28bn to deal with Covid-19 fallout
July 14, 2020--JP Morgan and Citi report significant declines in profit, while Wells Fargo posts a $2.4bn loss
Three of the largest US banks said on Tuesday they had set aside a whopping $28 billion (Dh102.8bn) for loan losses, in a stark reminder that much of the economic pain from the coronavirus pandemic is still to come.
Borrowers have been propped up by trillions of dollars in government and bank assistance, cheap credit and loan forbearance programmes, but some of that support is going away, and banks said they fear losses will spike.
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Source: thenational.ae
Federal Reserve's $3 trillion virus rescue inflates market bubbles
July 13, 2020-- The Federal Reserve's $3 trillion bid to stave off an economic crisis in the wake of the coronavirus outbreak is fuelling excesses across U.S. capital markets.
The U.S. central bank has pledged unlimited financial asset purchases to sustain market liquidity, increasing its balance sheet from $4.2 trillion in February to $7 trillion today.
While the vast majority of these purchases have been limited to U.S. Treasuries and mortgage-backed securities, the Fed's pledge to bolster the corporate bond market has been enough to spur a frenzy among investors for bonds and stocks.
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Source: reuters.com
SEC commissioner calls for better ESG labelling
July 12, 2020--One of the US investment industry's top regulators has called for asset managers to provide clearer explanations of how environmental, social and governance metrics could affect the performance of ESG-labelled funds.
Sustainable investment funds are gathering record-breaking inflows and attracting mounting scrutiny from US regulators, who are concerned that not enough information is being provided to retail investors to allow them to properly compare available choices.
Elad Roisman, one of the four most senior officials at the Securities and Exchange Commission, said asset managers that wanted to use the labels "ESG", "green" and "sustainable" to name or advertise funds should be required to explain how these terms would influence the strategy and objectives of an investment product.
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Source: technocodex.com
