Thomson Reuters-Monday Morning Memo: Are ETFs the better tool for investors?
May 7, 2018--While observing the current active/passive fund debate, one could get the impression that investors must make the decision of investing either passively or actively in their portfolios.
The talking points of each type of investment are often praised as a kind of dogma. But this is obviously not the case, since investors can use ETFs even if they believe active managed funds are the superior products or the other way around.
Investors who prefer actively managed funds in their portfolios can still use ETFs as tactical investment tools to implement their asset allocation views. ETFs can give them direct access to an asset class that may not be available among actively managed funds or if their investment horizon is too short for an active manager to generate alpha-often achieved only over a longer period.
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Source: Detlef Glow, Head of EMEA Research-Thomson Reuters Lippe
Solactive releases new equity benchmark covering Australia
May 4, 2018--Solactive is excited to announce the release of the Solactive Australia 200 Index, a new
benchmark tracking the performance of the 200 largest companies by market capitalization listed on the Australian Securities Exchange.
With this new launch, Solactive expands its range of competitively-priced benchmarks and offers for the first time a broad-market index providing targeted exposure to the largest economy in the Oceanian region
Specifically, the Solactive Australia 200 Index is a free-float market capitalization weighted index covering approximately 90% of the Australian equity market*.
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Source: Solactive AG
ESAs consult on amendments to joint EMIR standards
May 4, 2018--The European Supervisory Authorities Authority (ESAs) launched today two joint consultations to amend Regulatory Technical Standards (RTS) on the clearing obligation and risk mitigation techniques for OTC derivatives not cleared.
These standards, which implement the European Market Infrastructure Regulation (EMIR), aim to amend the current regulation on the clearing obligation and risk mitigation techniques on OTC derivatives not cleared by a central counterparties (CCPs) in order to provide a specific treatment for simple, transparent and standardised (STS) securitisation and ensure a level playing field with covered bonds. The consultations run until 15 June 2018.
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Source: ESMA
Boerse Stuttgart records April turnover of around EUR 5 billion
May 3, 2018--Trading in leverage products shows year-on-year increase
Based on its order book statistics, Boerse Stuttgart generated turnover of around EUR 5 billion in April 2018.
At around EUR 2.3 billion, securitised derivatives made the largest contribution to the monthly total. Within this asset class, over EUR 1.3 billion was generated from trading in leverage products-an increase of more than 26 percent on the same month in 2017-while investment products added over EUR 920 million.
Turning to equities, the order book shows monthly turnover in excess of EUR 1.1 billion.
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Source: Boerse Stuttgart
New VanEck Vectors ETF on the global metal and mining sector launched on Xetra
May 3, 2018--A new exchange traded fund issued by VanEck Vectors is tradable on Xetra and Börse Frankfurt as of Thursday.
The VanEck Vectors Global Mining UCITS ETF gives investors access to equities, American Depositary Receipts (ADR) and Global Depositary Receipts (GDR) of metal and mining companies worldwide.
The reference index comprises equities from companies whose main business activities are in the production of base, industrial and precious metals. It currently includes 160 equities from 24 markets, including the UK, Canada, the USA, Brazil, Russia and China. The fund itself holds no physical gold or metal.
Name: VanEck Vectors Global Mining UCITS ETF
Asset class: equity index ETF
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Source: Deutsche Börse Cash Markets
New Xtrackers ETF on the US stock market launched on Xetra
May 3, 2018--A new exchange traded fund issued by Deutsche Asset Management is tradable on Xetra and Börse Frankfurt as of Thursday.
The Xtrackers MSCI USA UCITS ETF 2C-EUR Hedged Distribution gives investors access to large and medium-sized US stock corporations. The reference index currently comprises 631 shares and coversroughly 85 percent of US market capitalisation.
The ETF uses a hedging strategy to minimise the exchange rate risk between the US dollar and the euro.
Name: Xtrackers MSCI USA UCITS ETF 2C-EUR Hedged Distribution
Asset class: equity index ETF
ISIN: IE00BG04M077
Ongoing charges p.a.: 0.12 percent
Distribution policy: distributing
Reference index: MSCI Total Return Net USA Index
The product offering in Deutsche Börse's XTF segment currently comprises a total of 1,266 exchange traded funds. This selection, together with an average monthly trading volume of around €11 billion, makes Xetra Europe's leading trading venue for ETFs. Xetra(R)and XTF(R) are registered trademarks of Deutsche Börse AG.
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Source: Deutsche Börse Cash Markets
Swiss exchange launches microwave trading network
May 3, 2018--The Exchange Services unit of SIX launched the first international microwave-based trading network in Europe.
SIX is the first exchange worldwide to own and operate an international microwave network in Europe.
The network connects Zurich to London, Frankfurt and Milan as well as Milan to London and Frankfurt. It enables trading participants of the Swiss exchange to execute their trading strategies faster and enhances their risk management. It also improves liquidity and tightens spreads, which results in better execution conditions for all stakeholders of the Swiss exchange.
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Source: SIX Swiss Exchange
Vienna Stock Exchange expands existing ATX offering with new short and leverage indices
May 3, 2018--As of today, the Vienna Stock Exchange is launching new short and leverage indices on the leading Austrian index ATX, thus expanding its existing index offering. The short indices are based on the ATX Total Return (ATX TR) and the leverage indices on the ATX Net Total Return (ATX NTR).
In addition to the existing levers of +/-2 and +4, clients can now also participate in the development of the ATX with levers of -4, +/-6, +/-8 and +/-10. With this expanded offer, the Vienna Stock Exchange is responding to the demand of international market participants.
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Source: Vienna Stock Exchange
The Spanish Exchange traded 65.6 billion Euros in April
May 3, 2018--The Spanish Exchange traded €65.6 billion in Equities in April, up 33.3% from the preceding month and is the highest figure in the last ten months. The number of trades came in at 2.9 million.
Trading of Financial Derivatives since January decreased 4.1% but trading in IBEX 35 Derivatives remains on the rise, posting a year-on-year increase of 7.1% in IBEX 35 Futures, as well as Mini IBEX Futures, up 7.8% and IBEX 35 Options, 18.2% higher. The open interest was 2.7% lower across the board but shows increases for Mini IBEX Futures, up 21%, IBEX 35 Options, up 45.2% and Stock Futures, up 9.6%.
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Source: Bolsas y Mercados Españoles
National Statistics: UK official holdings of international reserves: April 2018
May 3, 2018--This release details movements in the international reserves of gold and assets held by the UK government.
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Source: HM Treasury