3 tech giants you might not find in a tech ETF
August 22, 2017--For a long time, many investors have used ETFs tracking the Nasdaq 100 Index to gain exposure to the world's technology and internet giants.
However, as the ETF market expands, investors are provided with more choices to target specific sectors and investment themes. As such, it is becoming increasingly important for investors to understand the companies in the underlying index to which they are getting exposure-and the tech sector is no different!
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Source: betashares.com.au
Turning Japanese: surprising value in the land of rising corporate profits
August 22, 2017--Although the Japanese economy has long been considered sluggish and blighted by deflation, it may surprise some investors to know that economic growth and corporate earnings growth in recent times have been impressively strong.
What's more, this improvement has been only partly rewarded by rising equity prices, leaving Japanese equities relatively cheap by global standards.
Japan: A source of surprising strength
Due to population ageing, low immigration and a lack of competition-enhancing reforms in many sectors, the Japanese economy has long suffered from relatively weak economic growth by global standards.
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Source: betashares.com.au
ETFGI reports assets invested in ETFs/ETPs listed in Japan reached a new record of US$225 Bn at the end of July 2017
August 22, 2017--ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, today reported assets invested in ETFs/ETPs listed in Japan reached a new record of US$225 Bn at the end of July 2017, according to ETFGI's July 2017 global ETF and ETP industry insights report.
At the end of July 2017, the Japanese ETF/ETP industry had 188 ETFs/ETPs, with 233 listings and assets of US$225 Bn from 21 providers on 2 exchanges.
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Source: ETFGI
5 Charts on the Chinese Economy
August 20, 2017--The July activity data for China were just released, but rather than dwell on the details of the data, I decided I would pick out 5 charts that show some of the key cyclical and structural trends for China's economy.
It's important to keep track of these given the rising influence of the Chinese economy on the global economy and financial markets. It's also important to gauge any changes in the cycle, as this has the greatest near term impact on investment markets and helps us understand the risk and opportunity set and finesse the timing around molding and shaping portfolios to capture and reflect these trends.
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Source: Callum Thomas, TopDown Charts
6 Charts on GDP in China
August 20, 2017--With the release of the June quarter GDP results from China it's worth checking in on a few charts that show some of the key trends in China's economy.
The charts present mostly a cyclical view, but the structural trends and changes in the make up of the economy are also clearly evident in the graphs below.
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Source: Topdown Charts Limited
Chinese share indices: 24-hour party people
August 18, 2017--Extending index eligibility beyond H shares makes sense
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Source: FT.com
China Codifies Crackdown on 'Irrational' Outbound Investment
August 18, 2017--State Council plans restrictions on property, hotels, sports
Authorities will also ban overseas investment in gambling
China formally laid down new rules on overseas investments, making explicit its de facto campaign against "irrational" acquisitions of assets in industries ranging from real estate to hotels and entertainment.
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Source: Bloomberg
Hong Kong seeks to streamline Chinese indices
August 17, 2017--ICBC could gain Tencent and China Mobile as Hong Kong moves to simplify its China tracking indices, which are complicated by the large number of Chinese share classes.
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Source: FT.com
World's Biggest Pension Fund Wants to Stop Index Trackers Eating the Economy
August 17, 2017--The growth in passive index-tracking threatens to harm investors in the long term
If investors continue to pile their money into passive index-tracking, at some point markets will stop doing their job of allocating resources efficiently in the economy. Perhaps they already have.
The threat is big enough that the world's largest pension fund* is preparing to put more of its money with active managers-who charge more and on average underperform-in an attempt to keep markets functioning properly.
*Japan's Government Pension Investment Fund
Source: Wall Street Journal
JPX Monthly ETF Monthly Report (July 2017)
August 17, 2017--The JPX Monthly ETF Monthly Report (July 2017) is available.
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Source: JPX (Japan Exchange Group)
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