Americas ETP News
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Existential Crisis in Bonds Fuels Wall Street's Income ETF Boom
July 1, 2022--Wave of payout-focused ETFs on way as bond volatility builds
Skeptics warn new funds simply increase equity-risk exposure
In an inflation-lashed world where bonds are posting record losses, Wall Street issuers are betting investors hungry for income will instead lavish their millions on ETFs that ride stocks in order to deliver payouts.
At least four issuers have filed plans for so-called income exchange-traded funds in the past few weeks, while three more such products have started trading in the same period. The vehicles target a steady stream of income using a range of equity-based strategies, like buying dividend-paying companies or selling call options on the S&P 500.
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Source: bloomberg.com
BondBloxx Launches Duration-Focused Emerging Market Fund in Response to Rising Interest Rates
June 30, 2022--BondBloxx Investment Management announced the launch of the BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF (XEMD), which begins trading today on CBOE. The fund tracks the J.P. Morgan EMBI Global Diversified Liquid 1-10 Year Maturity Index and includes US-denominated fixed-rate and floating-rate instruments with at least $1B in outstanding debt issued by sovereign and quasi-sovereign entities in index-eligible countries.
"As a truly novel product with a compelling risk / return profile, we believe XEMD is a valuable addition to the marketplace because it enables emerging market exposure while simultaneously addressing creeping duration risk1," said Paul Van Gilder, Investment Officer and Portfolio Manager, Municipal Employees' Retirement System (MERS) of Michigan. "As rates continue to rise, we think these kinds of tools will become even more critical."
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Source: BondBloxx
Inflation Protection ETF "CPII" Launches from Ionic Capital Management(R) LLC and Tidal ETF Services
June 29, 2022--The fund seeks to generate positive returns during periods of elevated inflation and rising interest rates
With the most recent inflation print at a 40-year high, Ionic Capital Management LLC (Ionic) in partnership with Tidal ETF Services, LLC (Tidal) launches the Ionic Inflation Protection ETF (NYSE: CPII). The actively managed fund seeks to generate positive returns during periods of elevated and/or rising inflation and inflation expectations as well as during periods of increasing interest rates and fixed income volatility.
"While the world has been in a deflationary environment for the past few decades, it now appears that period has ended. We have shifted to an inflationary environment that will persist at elevated levels even if current readings ultimately prove to be peak levels. It is critical that institutional and retail investors find ways to mitigate the destructive elements of sustained elevated inflation," says Doug Fincher, Portfolio Manager at Ionic."Now is the time to seek protection from the destruction of purchasing power caused by inflation."
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Source: Ionic Capital Management
Grayscale Sues SEC Over Bitcoin ETF Application Rejection
June 29, 2022--The SEC rejected Grayscale's application to convert its Grayscale Bitcoin Trust to an exchange-traded fund earlier Wednesday.
Grayscale Investments has sued the U.S. Securities and Exchange Commission (SEC) barely an hour after the regulatory agency rejected its application to convert its flagship Grayscale Bitcoin Trust product to an exchange-traded fund (ETF).
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Source: coindesk.com
New Xtrackers ETF puts U.S. equity investors on the net zero 'pathway'
June 28, 2022-- DWS, one of the world's leading asset managers, announced today the launch of a new Xtrackers exchange-traded fund (ETF). It provides large and mid-cap U.S. equity exposure aligned with an internationally recognized framework and is designed to capture the move of the global economy to a net zero emissions environment.
Xtrackers Net Zero Pathway Paris Aligned U.S. Equity ETF (NYSE Ticker: USNZ) listed today on the New York Stock Exchange and is designed to align with the objective of transforming economies to net zero. It provides exposure to a unique Paris Aligned Benchmark (PAB) index that uses a transparent set of rules that aim to be at the cutting edge of sustainable investment practices[1]. The index is designed to provide a 50% reduction in carbon intensity[2] versus a market capitalization weighted U.S. equity index[3], and a carbon intensity reduction trajectory of 7% year-on-year. I
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Source: dws.com
NightShares Launches the Only Family of ETFs Focused on the "Night Effect"
June 28, 2022---Founded by ETF industry veterans, NightShares funds are designed to capture the value from systematically buying at the close and selling at the open
The Night Effect has been identified in a large body of academic research as having the potential to offer attractive risk-adjusted returns and ETF investors have not had the ability to invest in just the Night Effect until now (1).
NightShares, a new entrant to the ETF space led by a highly experienced team that has built and grown multiple successful ETF brands, is today launching its first two ETFs: the NightShares 500 ETF (NSPY) and the NightShares 2000 ETF (NIWM).
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Source: NightShares
Smart beta ETF launches sink to 12-year low
June 28, 2022--Plain-vanilla strategic beta strategies are gathering the most assets, according to Morningstar
Factor-focused strategies may no longer be the exchange traded fund industry's shiny new thing. However, investors have not abandoned strategic beta ETFs with "plain vanilla" tilts and relatively low fees, Morningstar research shows.
Last year investors sank $131bn into strategic beta ETFs, which are focused on so-called investment factors such as momentum, minimum volatility, value and growth.
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Source: ft.com
IMF-United States of America: Concluding Statement of the 2022 Article IV Mission
June 24, 2022--A Strong Recovery from the Pandemic
The U.S. economy has staged a strong recovery from the COVID-19 shock. The positive effects of unprecedented policy stimulus, combined with the advantages of a highly flexible economy, have been clear. Just over two years after the COVID-19 shock, the unemployment rate and other measures of labor force underutilization have returned to end-2019 levels and output is close to its pre-pandemic trend.
Rapid wage increases for lower income workers have reduced income polarization, poverty fell to 9.1 percent in 2020 (from 11.8 percent in 2019), and there were even larger reductions in poverty for female-headed households, children, African Americans and Hispanics.
On net, 8.5 million jobs have been created since the end of 2020. There has, however, been a relatively slow recovery of labor force participation (reflecting a secular, demographic downtrend and early retirements) and there are important concerns around the potential longer run effects of the pandemic on education outcomes and productivity.
Over the past two years, U.S. financial institutions and corporates have been resilient, albeit with the aid of significant policy support. Stress tests show the banks to be very liquid and highly capitalized.
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Source: imf.org
Ken Griffin Moving Citadel From Chicago to Miami Following Crime Complaints
June 23, 2022--Hedge-fund founder has had long-running feud with Illinois Gov. J.B. Pritzker over crime, other issues
Billionaire Ken Griffin is relocating his hedge-fund firm Citadel from Chicago to Miami, the third major employer to announce the move of a corporate headquarters from Illinois in the past two months.
In a letter to employees Thursday, Mr. Griffin said he had personally moved to Florida-a state that doesn’t collect personal income tax-and that his market-making business, Citadel Securities, would also transfer. He wrote that he views Florida as a better corporate environment and though he didn't specifically cite crime as a factor,company officials said it was a consideration.
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Source: wsj.com
Coinbase Launching 'Nano' Bitcoin Futures via Derivatives Exchange
June 23, 2022--Formerly called FairX, Coinbase Derivatives Exchange will offer futures priced at 1/100th of a Bitcoin through third-party brokers beginning Monday.
Retail investors will be able to trade crypto futures through Coinbase starting Monday, as the largest exchange in the U.S. by volume will offer them on its new Derivatives Exchange platform.
The move comes after Coinbase acquired FairX in January as part of its goal of offering crypto futures and options trading to its customers. FairX had been selling futures products and was already registered with the federal Commodity Futures Trading Commission (CFTC), giving Coinbase a running start in the $3 trillion crypto derivatives market.
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Source: decrypt.co
