Global ETF News Older than One Year
World Gold Council-Global gold-backed ETF inflows driven by Europe and Asia
June 6, 2018--Global gold-backed ETF holdings added 15 tonnes(t) to 2,484t in May. Europe and Asia drove inflows as European funds have responded strongly in the past two months. North American fund flows reversed their early 2018 trend as they lost 2.3% of assets, likely a result of the volatile prices in the gold market which left gold lower by 60bps (in dollar terms) on the month.
Volatility and weakness in the gold market were largely driven by a stronger dollar (DXY +2.3% on the month). However, USD-hedged gold was higher by 1.4% on the month. This highlights our view that having some allocation to USD-hedged gold helps risk-adjusted returns by lowering price volatility in periods when currency prices fluctuate.
Source: World Gold Council (WGC)
Global Economy to Expand by 3.1 percent in 2018, Slower Growth Seen Ahead
June 5, 2018--Emerging, Developing Economies to Accelerate as Commodity Exporters Recover
Despite recent softening, global economic growth will remain robust at 3.1 percent in 2018 before slowing gradually over the next two years, as advanced-economy growth decelerates and the recovery in major commodity-exporting emerging market and developing economies levels off, the World Bank said on Tuesday.
"If it can be sustained, the robust economic growth that we have seen this year could help lift millions out of poverty, particularly in the fast-growing economies of South Asia," World Bank Group President Jim Yong Kim said. "But growth alone won't be enough to address pockets of extreme poverty in other parts of the world. Policymakers need to focus on ways to support growth over the longer run—by boosting productivity and labor force participation-in order to accelerate progress toward ending poverty and boosting shared prosperity."
view the world Bank June 2018 Global Economic Prospects The Turning of the Tide?
Source: World Bank
iShares-Four Big Trends Driving ETF Growth-Global ETF assets could reach $12 trillion over five years
June 5, 2018--Exchange traded funds (ETFs) are the most enduring investing trend in a generation. This century began with fewer than $100 billion in ETF assets and now counts $4.7 trillion across an ever-expanding number of products.1
Expect growth to accelerate. As detailed in the full report, sweeping developments within the investment management industry are putting ETFs on course to potentially gather more assets over the next five years than in the previous 25 years combined.2
Global ETF assets are poised to more than double to $12 trillion by the end of 2023 and possibly reach $25 trillion by the end of 2027.3
Four trends are likely to fuel future ETF growth, especially in the U.S. and Europe:
ETF investors are active investors. ETFs are increasingly used in portfolios to seek outcomes that differ from the broad market. Investors are likely to step up their use of ETFs as building blocks in asset allocation and as vehicles to deliver factor-based investment strategies that seek to emphasize persistent drivers of return.
Source: BlackRock
ETFGI reports assets invested in active ETFs and ETPs listed globally reach record high of 86 billion US dollars at the end of April 2018
June 5, 2018--ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in active ETFs and ETPs listed globally reached a record high of US$86.09 Bn at the end of April 2018; an increase in assets of US$3.11 Bn from the previous record of US$82.97 Bn set at the end of March 2018. (All dollar values in USD unless otherwise noted.)
Highlights
Assets invested in actively-managed ETFs/ETPs listed globally increased by $3.11 Bn during April to reach a new record high of $86.09 Bn
In April 2018, actively-managed ETFs/ETPs listed globally saw net inflows of $2.75 Bn
Active fixed income ETFs performed well this month, with assets invested in the PIMCO Enhanced Short Maturity Strategy Fund (MINT US) reaching a new record high of $8.99 Bn
Source: ETFGI
ETFGI reports assets invested in Currency Hedged ETFs and ETPs listed globally decreased by 1.1% year to date through end of April 2018
June 5, 2018--According to ETFGI's April 2018 Currency Hedged ETF and ETP industry insights report, a monthly report included in an annual paid-for research subscription service, assets invested in currency hedged ETFs/ETPs reached US$143.94 Bn at the end of April 2018, decreasing by 1.1% from US$146.14 Bn in December 2017. (All dollar values in USD unless otherwise noted.)
Highlights
Year-to-date, assets invested in currency hedged ETFs/ETPs decreased by $2.20 Bn
In April 2018, assets invested in currency hedged ETFs/ETPs saw net outflows of $371 Mn
Source: ETFGI
Paper-The Economic Limits of Bitcoin and the Blockchain
June 5, 2018--Abstract
The amount of computational power devoted to anonymous, decentralized blockchains such as Bitcoin's must simultaneously satisfy two conditions in equilibrium: (1) a zero-profit
condition among miners, who engage in a rent-seeking competition for the prize associated with adding the next block to the chain; and (2) an incentive compatibility condition on the
system's vulnerability to a "majority attack", namely that the computational costs of such an attack must exceed the benefits.
Together, these two equations imply that (3) the recurring, "flow", payments to miners for running the blockchain must be large relative to the one-off, "stock", benefits of attacking it. This is very expensive! The constraint is softer (i.e., stock versus stock) if both (i) the mining technology used to run the blockchain is both scarce and non-repurposable, and (ii) any majority attack is a "sabotage" in that it causes a collapse in the economic value of the blockchain; however, reliance on non-repurposable technology for security and vulnerability to sabotage each raise their own concerns, and point to specific collapse scenarios. In particular, the model suggests that Bitcoin would be majority attacked if it became sufficiently economically important-e.g., if it became a "store of value" akin to gold-which suggests that there are intrinsic economic limits to how economically important it can become in the first place.
Source: Eric Budish-faculty.chicagobooth.ed
ETF Securities Weekly Flows Analysis-Gold's safe haven status reignited by fears of 'Quitaly' and trade tariffs
June 4, 2018--Gold ETPs took the lion's share of inflows as Italy's political chaos and trade tariffs took centre stage
Diversified basket ETPs draw in US$46mn of inflows as investors appear to rotate back into commodities
Energy sector ETP flows bifurcate-energy baskets attract inflows while crude oil ETPs suffer outflows
Gold ETPs took the lion's share of inflows, garnering inflows worth US$122.7mn, marking its highest level in 33 weeks. A turbulent week in Italian politics coupled with the intensification of US trade tariffs supported a reversal in trend of the priors two weeks of outflows among gold ETPs. Fears of a new round of elections in Italy sparked by the rejection of the candidate for the economic and finance minister by President Sergio Mattarella widened the gap between yields on the ten year Italian and German government bonds to over 250 Basis Points (Bps), its highest level since October 2013.
Source: ETF Securities
Total virtual currency sales jump in 2018 but monthly trend slows: report
June 4, 2018--Virtual currency sales ballooned to $9.1 billion so far this year, exceeding the $6.6 billion total for all of 2017, a financial technology data provider reported on Monday, but it said the monthly trend actually showed a slowdown if the two biggest offerings are excluded.
Digital technology startups around the world have raised funds by selling cryptocurrencies, or tokens, that sidestep banks or venture capital firms as intermediaries.
Source: Reuters
ETFGI reports assets invested in the global ETF industry extended lead over hedge fund industry to US$1.70 trillion at the end of Q1 2018
June 1, 2018--ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in the global ETF/ETP industry extended their lead over assets invested in the global hedge fund industry to US$1.70 trillion at the end of Q1 2018, an increase of 4.91% over the gap at the end of Q4 2017. (All dollar values in USD unless otherwise noted.)
Assets invested in global ETF/ETP industry extend lead over assets in global hedge fund industry to $1.70 Tn at the end of March 2018
Record $4.92 Tn invested in 7,389 ETFs/ETPs listed globally at the end of March 2018
Record $3.22 Tn invested in 8,379 hedge funds globally at the end of March 2018
1.74% growth in assets invested in ETFs/ETPs over Q1 2018 outpaces 0.13% growth in assets in hedge funds over the same period. In contrast, growth over Q1 2017 was 10% and 2%, respectively.
Source: ETFGI
DECPG Global Weekly
June 1, 2018--TAKING STOCK
U.S. Q1 GDP growth revised slightly down; nonfarm job growth strengthened in May; PCE inflation remained steady
U.S. government announced new import tariffs on major trading partners
Euro Area inflation picked up in May; unemployment rate fell in April
China's official manufacturing PMI picked up in May
Financial markets were negatively affected by political uncertainty in Italy
Source: World Bank
