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BlackRock Projects Global Bond ETF Assets to Reach $5 Trillion by 2030
May 18, 2022--Faster investor adoption and novel bond ETF applications driving 23% annual growth rate
Despite the most challenging fixed income market in decades, BlackRock projects that global bond exchange-traded funds (ETFs) assets under management (AUM) will triple to $5 trillion by 2030.1
The extreme market volatility in the early days of the pandemic reinforced the versatility of bond ETFs. As a result, over the past two years more wealth managers have put bond ETFs at the center of their portfolios and institutional adoption of bond ETFs has broadened and deepened
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Source: ishares.com
Dimensional's conversion of mutual funds into ETFs pays off
July 15, 2022--The first four such vehicles notch up $4.2bn in a year while mutual funds outflows hit $14bn
Dimensional Fund Advisors' decision to convert a number of mutual funds into exchange traded funds has been vindicated after the first four such vehicles pulled in $4.2bn in a year even as the company's mutual funds bled $14bn.
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Source: ft.com
Harbor Capital Advisors Launches Energy Transition Strategy ETF
July 14, 2022--Harbor Capital Advisors, Inc. ("Harbor"), a premier multi-manager investment firm offering access to innovative and specialized expertise across a range of investment strategies and vehicles, today announced the launch of the Harbor Energy Transition Strategy ETF (RENW).
The fully transparent ETF will seek to track the performance of the Quantix Energy Transition Index (the "Index") before fees and expenses. The Index was developed by Quantix Commodities LP ("Quantix") and is owned by Quantix Commodities Indices, LLC.
The commodities that comprise the Index serve one of the three purposes associated with the theme: (1) they are used to construct the new energy infrastructure (e.g. copper, aluminum, and silver); (2) they are "bridge fuels" that are less carbon-intensive and will provide energy between now and the net-zero state (e.g. natural gas); or (3) they incentivize investment in the new energy infrastructure (e.g. carbon credits).
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Source: Harbor Capital Advisors, Inc
Matthews Asia Launches First Active ETF Strategies To Meet Growing Client Need
July 14, 2022--Matthews Asia launched three active exchange traded funds (ETFs) on the New York Stock Exchange (NYSE) today that focus on global emerging markets, Asia and China.
Matthews Asia launched three active exchange traded funds (ETFs) on the New York Stock Exchange (NYSE) today that focus on global emerging markets, Asia and China.
The investment strategies of Matthews Asia's new active ETFs will be substantially similar to existing mutual funds and be managed using the Firm's long-standing fundamental research approach that seeks to identify compelling investment opportunities that we believe can generate above index returns.
The three active ETFs:
Matthews Emerging Markets Equity Active ETF
Matthews Asia Innovators Active ETF
Matthews China Active ETF.
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Source: matthewsasia.com
New ETF Launches May Outpace 2021 Surge on Single-Stock Offers
July 19, 2022--Reeling from a first half that saw the ETF market shrink by about $1 trillion, fund issuers may get a lifeline from a new class of products and a potential rebound in financial markets, Bloomberg Intelligence says.
Exchange-traded fund issuers, who introduced new products at a rapid pace to start the year, saw filings drop by half after Russia's invasion of Ukraine roiled markets, essentially finishing the first half flat. But there's optimism that filings and listings can stage a comeback in the second half of 2022.
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Source: bnnbloomberg.ca
Bank Fees Are 'Significantly Eroding' Russia ETF, VanEck Warns
July 13, 202--Depository-receipt fees costing at least 20% of RSX's assets
VanEck urges banks to 'do the fair thing' and waive fees
The money manager behind a Russia-focused ETF that collapsed after the country invaded Ukraine is warning that bank fees are "significantly eroding" what little of the fund's value remains.
VanEck said Citigroup Inc., JPMorgan Chase & Co. and Bank of New York Mellon are charging fees on Russian depository receipts that its Russia ETF (ticker RSX) primarily holds, costing at least 20% of the product's assets, which have slumped to about $37 million.
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Source: bloomberg.com
ETFGI reports the ETFs industry in Canada suffered net outflows in June 2022 after 35 months of consecutive net inflows
July 12, 2022--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that the ETFs industry in Canada suffered net outflows in June 2022 after 35 months of consecutive net inflows.
ETFs listed in Canada suffered net outflows of US$644 million during June, bringing year-to-date net inflows to US$15.28 billion. In June 2019 the ETFs industry in Canada suffered net outflows of US$46 million.
During the month, Canadian ETF assets decreased by 6.3%, from US$260 billion at the end of May to US$243 billion, according to ETFGI's June 2022 Canadian ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Assets of $243 Bn invested in ETFs listed in Canada at the end of H1 2022.
Assets have decreased 10.9% in H1 2022, going from $273 Bn at the end of 2021, to $243 Bn.
Net outflows of $644 Mn in June 2022 – the first month of net outflows in 3 years.
1st month of net outflows.
Net inflows of $15.28 billion in H1 2022 are the third highest on record, after net inflows of $26.35 billion in H1 2021 and net inflows of $16.82 billion in H1 2020.
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Source: ETFGI
SEC warns investors about new single-stock leveraged ETFs
July 12, 2022--Products carry 'greater volatility and risk' compared with holding the underlying asset, says US regulator
Senior officials from the top US markets regulator have warned of the risks of single-stock leveraged exchange traded funds, speaking out ahead of the products' imminent launch.
Lori Schock, director of the Securities and Exchange Commission's office of investor education and advocacy, said the new products were even riskier than existing leveraged and inverse ETFs, which provide daily amplified losses and gains on the securities they track and which the SEC has already warned against.
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Source: ft.com
IMF-The US Economy's Inflation Challenge
July 12, 2022-The US economy has recovered quickly from the pandemic but the bounce back in demand has stressed supply chains and caused inflation to rise sharply. The economy is expected to slow, as the Federal Reserve (the Fed) continues to tighten monetary policy and COVID economic relief programs come to an end, bringing core Personal Consumption Expenditure (PCE) inflation down to the Fed's 2 percent medium-term target by late 2023.
However, if inflation is more persistent than expected, the Fed will need to tighten more, which will further slow the economy.
The IMF's annual review of the US economy focuses on the policies needed to return inflation to the Fed's medium-term target. Most workers' wages have failed to keep up with inflation, eroding the purchasing power of households and causing significant hardship. Although increases in gasoline and food prices have been affected by global events, the prices of a broader range of items have also risen strongly, including housing and transportation. If left unchecked, these price increases could become long lasting. In our assessment, we conclude that the Fed should act quickly and assertively to tackle inflation and restore price stability.
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Source: IMF
CBO-Monthly Budget Review: June 2022
July 11, 2022--Summary
The federal budget deficit was $514 billion in the first nine months of fiscal year 2022 (that is, from October 2021 through June 2022), the Congressional Budget Office estimates. That amount is less than one-quarter of the $2.2 trillion shortfall recorded during the same period in 2021.
Revenues were $779 billion (or 25 percent) higher and outlays were $945 billion (or 18 percent) lower than during the same period a year ago.
The deficit at this point last year was much larger because of spending in response to the coronavirus pandemic-mostly for the recovery rebates (also known as economic impact payments), unemployment compensation, pandemic relief through the Small Business Administration (SBA), and the Coronavirus Relief Fund-and because revenues were lower.
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Source: Congressional Budget Office (CBO)
