Global ETF News Older than One Year
IMF Working Papers-Predicting Fiscal Crises
August 3, 2018--Summary:
This paper identifies leading indicators of fiscal crises based on a large sample of countries at different stages of development over 1970-2015. Our results are robust to different methodologies and sample periods.
Previous literature on early warning sistems (EWS) for fiscal crises is scarce and based on small samples of advanced and emerging markets, raising doubts about the robustness of the results. Using a larger sample, our analysis shows that both nonfiscal (external and internal imbalances) and fiscal variables help predict crises among advanced and emerging economies. Our models performed well in out-of-sample forecasting and in predicting the most recent crises, a weakness of EWS in general. We also build EWS for low income countries, which had been overlooked in the literature.
view the IMF Working Papers-Predicting Fiscal Crises
Source: IMF
WGC-Gold Demand Trends-Second Quarter 2018
August 2, 2018--The gold market stayed soft in Q2; global demand was fell 4% y-o-y to 964.3t.
Total H1 demand of 1,959.9t is the lowest since H1 2009.
Smaller inflows into gold-backed ETFs drove the decline.
Q2 inflows were 46% lower y-o-y; US-listed funds saw net outflows.
Bar and coin investment was virtually static at 247.6t.
Gains in China and Iran were offset by falls in Turkey, India and Europe.
Q2 jewellery demand down 2%; H1 stable. Weakness in India and Middle East offset by growth in China and the US.
The technology sector saw further growth, up 2% to 83.3t.
Thriving smartphone market has helped boost gold used in electronics.
Source: World Gold Council (WGC)
IMF Working Papers-A Behavioral Approach to Financial Supervision, Regulation, and Central Banking
August 2, 2018--Summary:
This paper describes how behavioral elements are relevant to financial supervision, regulation, and central banking. It focuses on (1) behavioral effects of norms (social, legal, and market); (2) behavior of others (internalization, identification, and compliance); and (3) psychological biases.
It stresses that financial supervisors, regulators, and central banks have not yet realized the full potential that these behavioral elements hold. To do so, they need to devise a behavioral approach that includes aspects relating to individual and group behavior. The paper provides case examples of experiments with such an approach, including behavioral supervision. Finally, it highlights areas for further research.
Source: IMF
Free Fidelity Funds Stoke Price War in Bid to Catch Index Giants
August 1, 2018--Firm will also reduce prices on existing index mutual funds
BlackRock, T. Rowe Price shares decline on Fidelity news
Fidelity Investments, having lost billions of dollars in assets to rivals, pulled out some new ammunition to use against them--dropping fees to zer
The move is part of an ongoing reckoning at Fidelity.
Source: Bloomberg
IOSCO issues recommendations to help trading venues manage extreme volatility
August 1, 2018--The Board of the International Organization of Securities Commissions (IOSCO) today published eight recommendations to assist trading venues and regulatory authorities in the implementation of mechanisms to manage extreme volatility and preserve orderly trading.
Following recent extreme volatility events, regulatory authorities and trading venues have been reviewing their approaches to managing extreme volatility, particularly through the use of volatility control mechanisms. Volatility control mechanisms seek to minimize market disruption triggered by events such as erroneous orders, by halting or temporarily constraining trading. IOSCO believes that these mechanisms support the goal of ensuring that markets are fair, efficient and transparent, thereby increasing market integrity and investor confidence.
Source: IOSCO
ETFGI reports that active ETFs and ETPs listed globally gathered net inflows of US$2.59 billion during June 2018
July 31, 2018-- ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that active ETFs and ETPs listed globally gathered net new assets of US$2.59 billion during June 2018, the lowest monthly net inflow since December 2017. (All dollar values in USD unless otherwise noted.)
Highlights
Active ETFs and ETPs listed globally gathered net new assets of $2.59 Bn during June 2018, the lowest net inflows gathered since December 2017.
Fixed income products gathered the largest net inflows during June, while inverse ETFs/ETPs experienced the largest net outflows.
Source: ETFGI
ETFGI reports that assets invested in leveraged and inverse ETFs and ETPs listed globally reached $79.9 billion at the end of June 2018
July 31, 2018--According to ETFGI's June 2018 Leveraged and Inversed ETF and ETP industry insights report, a monthly report included in the annual paid-for research subscription service, assets invested in leveraged and inverse ETFs and ETPs listed globally totalled US$79.9 billion at the end of June 2018; decreasing by 2.60% from US$82.1 billion at the end of May. (All dollar values in USD unless otherwise noted).
Highlights
Assets invested in leveraged and inverse ETFs/ETPs decreased by 2.60% during June 2018 to reach $79.9 Bn
During June, leveraged and inverse ETFs/ETPs listed globally saw net outflows of $1.65 Bn.
Source: ETFGI
ETFGI reports that Smart Beta ETFs and ETPs listed globally gathered net inflows of US$4.91 billion during June 2018
July 31, 2018--ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported net inflows of US$4.91 billion into Smart Beta ETFs and ETPs listed globally during June 2018, marking the 29th consecutive month of net inflows. (All dollar values in USD unless otherwise noted.)
Highlights
Net new assets gathered by Smart Beta ETFs/ETPs listed globally were $4.91 Bn during June 2018.
June 2018 marked the 29th consecutive month of net inflows.
Source: ETFGI
ETFGI reports that currency hedged ETFs and ETPs listed globally gathered net inflows of US$100 million during June 2018
July 31, 2018-- ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that currency hedged ETFs and ETPs listed globally gathered net new assets of US$100 million during June 2018. (All dollar values in USD unless otherwise note
Highlights
Currency hedged ETFs and ETPs listed globally gathered net new assets of $100 Mn during June 2018.
Source: ETFGI
FMSB publishes new financial markets misconduct research
July 27, 2018--The FICC Markets Standards Board ("FMSB") today publishes its Behavioural Cluster Analysis ("BCA") study. This is a unique piece of research that has reviewed the behavioural patterns in 390 cases of misconduct in financial markets over an extended period of time (225 years stretching back to 1792) and covering 26 countries and multiple asset classes.
This review indicates that the behavioural patterns evident in misconduct events are not unique to each case but that the same 25 behavioural patterns are evident in market misconduct cases and these consistently repeat and recur over time.
The purpose of the work is practical. This work addresses a number of the findings of the Fair and Effective Markets Review 2015 (FEMR). In particular, identifying the root causes and relevant behaviours which underlie market misconduct is an essential step in preventing them recurring and the work leverages the experience of domestic and international markets to do this.
view the FMSB Behavioural Cluster Analysis ("BCA") study
Source: FMSB
