Global ETF News Older than One Year
Global Trading Activity in August Solidly Outpaced the Prior-year Period
September 7, 2018--Despite the seasonal summer slowdown, global trading activity in August continued to outpace the prior-year period. Average daily volume (ADV) for Tradeweb Markets of $496 billion (bn)-across rates, credit, money markets and equities-in August 2018 increased 38.0 percent (%) year over year (YoY).
Derivatives volumes continued to grow at an accelerated rate. Tradeweb's ADV in rates derivatives rose 199.0% YoY. Growth has been driven by both greater market share of SEF interest rates swap volumes as well as continued volume growth on the MTF.
Source: Tradeweb
World Gold Council-Outflows in gold-backed ETFs continued in August
September 6, 2018--Holdings in global gold-backed ETFs and similar products fell by 40t to 2,353t in August-the third consecutive month-pushing assets under management (US$ AUM) down 3% relative to July
Funds listed in China had net gains as investors hedged trade risks and currency weakness. Flows in Europe were mostly flat. Global outflows were led by North American funds which lost US$1.65bn
Source: World Gold Council (WGC)
Monday Morning Memo: Is it only about fees and expenses in the funds industry?
September 3, 2018--Fees and expenses in the mutual funds industry are a hot topic for investors and market observers around the world. In some cases discussions are going so far that one could get the impression that fees and expenses are the only criteria an investor should use when selecting a mutual fund or ETF.
These discussions have recently been fueled by media coverage of the launches of some low-cost funds by large asset management groups.
Fees and expenses, especially for actively managed funds, have been under scrutiny for a while, since a large number of actively managed funds have not beaten their benchmarks. The fact that there is no guarantee that even the best fund manager will be able to deliver future outperformance makes the selection of an actively managed fund a bet against the market. In the best case the investor will be rewarded with outperformance. Therefore, it is key for the investor to balance the odds right.
Source: Detlef Glow, Thomson Reuters
Investment World Bank to increase clarity around impact investing
September 1, 2018--The World Bank body that promotes investment in developing countries has created a definition of impact investing to try to stop organisations wrongly using the strategy's popularity for gain.
Impact investing is a $1.3tn market that has attracted many followers. The approach aims to marry social or environmental outcomes with financial returns.
Source: canadanewsmedia.ca
'Time is on Beijing's side’: China, not Trump, will triumph in trade war, former top Chinese officials say
August 29, 2018--The real stakes are much higher than trade practices and China must gain control over core technology, economist says
China will eventually win the trade war against the United States, two senior Chinese government researchers said on Tuesday, reflecting popular thinking in Beijing that China does not need to bow to pressure from US President Donald Trump.
Source: scmp.com
IMF Working Paper-Banking in a Steady State of Low Growth and Interest Rates
August 27, 2018--Summary:
A prolonged low-interest-rate environment presents a significant challenge to banks and is likely to entail major changes to their business models over the long-run. Lower returns to maturity transformation in the face of flatter yield curves and an inability to offer deposit rates significantly below zero combine to compress bank earnings in this environment.
Smaller, deposit-funded, less diversified banks are hurt most, increasing consolidation pressures and reach-for-yield incentives, presenting new financial stability challenges.To the extent that such an economic environment reflects a new, steady-state with lower equilibrium growth driven by population aging and slower productivity growth, lower credit demand is likely to drive banking toward provision of fee-based, utility services.
Source: IMF
Vanguard nips at BlackRock's heels for fund crown
August 26, 2018--Money manager attracted $112bn of net new flows in first half while bigger rival brought in $77bn.
Source: FT.com
First Bridge Data-ETF Global Snapshot-Aug 2018-Upcoming GICS changes
August 23, 2018--The GICS sector changes announced in 2017 will become effective on September 28, 2018. The changes impact some of the world's most traded stocks.
Blackrock pruned its US product line by closing 16 ETFs with low asset levels.
US small cap healthcare, Internet and genomics stocks were among the best performing ETF categories this year.
There were 109 new listings globally in July 2018, with 20 of them in the US.
US small cap healthcare, Internet and genomics stocks were among the best performing ETF categories this year (through August 21, 2018). Turkish equities and Indian small caps were the worst performing.
Source: First Bridge Data
World Gold Council-Gold recoils amid selloff but may rebound
August 23, 2018--Gold fell to a 20-month low amid sharp EM currency depreciation. At these levels, we believe the gold price may bounce back. Consumer demand is likely to be supportive in H2.
And short positioning may quickly reverse should one of the many current macroeconomic risks materialise, increasing investment demand.
Momentum built as gold fell
The gold price lost 3% in August, a downturn that was exacerbated by gold's fall below US$1,200/oz-an important technical support level-for the first time since early 2017.
Source: World Gold Council (WGC)
World Bank exceeds expectations with world-first blockchain bond: CBA
August 23, 2018--The world's first public bond created and managed using only blockchain had support from seven investors, Commonwealth Bank of Australia, the sole lead manager of the deal said on Friday, helping raise A$110 million ($80.48 million) for the World Bank.
Commonwealth Bank (CBA.AX) executive general manager James Wall said that the deal, designed to test how the technology might improve decades-old bond sales practices, had exceeded expectations and interest had been "overwhelming".
Source: Reuters
