Global ETF News Older than One Year
Game of Sefs: automation helps Tradeweb topple Bloomberg
January 8, 2018--Buy side's desire for lighter-touch trading of interest rate swaps propels Tradeweb to top spot by volume.
In 2014, when the use of swap execution facilities (Sefs) became mandatory, Bloomberg was the dominant dealer-to-client venue by volume.
However, Tradeweb took the crown in 2017, recording just over $1 trillion of volumes compared to Bloomberg's $800 billion.
Source: Risk.net
WGC-Gold-backed ETFs added 197.5t in 2017, growing assets by 8.4%
January 8, 2018--2017 themes
European funds captured 75% of global inflows in 2017, adding 148.6t of gold (US$5.8bn, 14% AUM) to their holdings
German-listed ETFs accounted for 35% of global net inflows in 2017
In the US, iShares Gold Trust and SPDR(R) Gold Shares collectively accumulated 62.6t or 28% of global net inflows
On a percentage basis, currency-hedged gold-backed ETFs had some of the strongest growth during 2017
Asian-listed funds accounted for 54% of global net outflows
2017 top 5 individual funds by US dollar flows
Xetra-Gold accumulated US$2.3bn
iShares Gold Trust added US$2bn
Source: World Gold Council (WGC)
ETF Securities Weekly Flows Analysis-2018 ETP flows pick up right where 2017 left off
January 8. 2018--Global equity ETPs garnered US$21.6mn buoyed by a synchronised global growth story.
Gold ETPs received inflows of US$19.2mn led by higher gold prices, having gained support from a weaker US dollar.
Outflows worth US$14.1mn from crude oil ETPs mark a continuation of last year's trend of outflows.
Gold ETPs received inflows of US$19.2mn, staging a strong start to the new year. Gold prices ended the week higher by 1% supported by a weak US dollar. While the rise in US payrolls missed estimates by a considerable margin of 42,000 workers in December, owing to a shortfall in the services sector, it is unlikely to be a significant shift in the overall trend. The US ADP employment data showed private employers added 250,000 jobs in December, marking the biggest monthly increase since March last year. The accomplishment of passing the US tax bill is also likely to benefit US corporate earnings.
Source: etfsecurities.com
BlackRock Global ETP Landscape Monthly Snapshot-December 2017
January 8, 2018--Global ETPs Set a New Flows Record in 2017, Posting Another Year of Double Digit Organic Growth
Summary:
Global ETPs Set a New Flows Record in 2017, Posting Another Year of
Double Digit Organic Growth
Global ETP flows of $633.0bn represented 18% organic growth-the fastest growth
since 2009-and exceeded last year's flow record of $378.4bn by 67%, fueled by
record flows across equity and fixed income categories
U.S. equities brought in a new annual record $196.1bn with tax reform prospects and economic growth driving flows to small-caps and a rotation into cyclical sectors
Broad developed markets equity funds saw record full-year flows of $116.2bn, including $54.5bn in EAFE products, spurred by favorable valuations and strong economic data
Broad emerging markets equities gathered $45.4bn in 2017, beating the previous record set in 2010 of $31.5bn, bolstered by stronger commodity prices and a weaker U.S. dollar
Fixed income flows grew to $156.2bn, a new record and an increase of more than a third versus last year and marking new highs for investment grade corporate bonds, emerging markets debt and U.S. Treasury funds
Source: BlackRock
Quant hedge funds set to surpass $1tn management mark
January 8, 2018--Growth propelled by interest in more systematic, computer-powered investment plans.
Source: FT.com
ETF Securities-Precious Metals Monitor--December 2017
January 5, 2018---Precious Metals Monitor--December 2017
Key Highlight
Gold: A Goldilocks Economy in 2018 May Benefit Gold
The global economy continues to chug along in a "just-right" goldilocks scenario with steadily rising inflation and synchronized growth among developed and emerging economies.
This backdrop has benefited equities over gold in 2017 while also resulting in stretched equity valuations and record low volatility. As the economy seems to be on cruise control, this complacency may see the probability of unforeseen risks disrupting the status quo increase. This may result in heightened demand for gold as a portfolio risk overlay in preparation for a correction or slowdown particularly while gold remains relatively cheap. Additionally, in an expanding global economy, consumer demand for jewelry and electronics may provide a floor for gold demand, while rising inflationary pressures may keep real interest rates low and tame as the US rate tightening cycle continues throughout 2018.
Source: etfsecurities.com
IMF Working paper-Optimism, Pessimism, and Short-Term Fluctuations
January 5, 2018--Summary:
Economic theory offers several explanations as to why shifting expectations about future economic activity affect current demand. Abstracting from whether changes in expectations originate from swings in beliefs or fundamentals, we test empirically whether more optimistic or pessimistic potential output forecasts trigger short-term fluctuations in private consumption and investment.
Relying on a dataset of actual data and forecasts for 89 countries over the 1990-2022 period, we find that private economic agents learn from different sources of in- formation about future potential output growth, and adjust their current demand accordingly over the two years following the shock in expectations. To provide a theoretical foundation to the empirical analysis, we also propose a simple Keynesian model that highlights the role of expectations about long-term output in determining short-term economic activity.
view the IMF Working paper-Optimism, Pessimism, and Short-Term Fluctuations
Source: IMF
UPDATE 1-China aims to get more cross-border transactions done in yuan
January 5, 2018--C.bank:Encourage firms to use the yuan in cross-border trade
To support yuan usage by foreigners' for direct investment
Banks told to let foreign firms freely remit profits, dividends (Adds details)
China will encourage companies to increase their use of yuan for settling cross-border trade deals and support foreigners' use of the currency for direct investments in the country, the central bank said on Friday.
Source: Reuters
All Wirehouses Forbid Cryptocurrency Trading, Not Just Merrill Lynch
January 4, 2018--Wells Fargo, UBS and Morgan Stanley also bar advisors to purchase bitcoin or derivative products on behalf of clients.
Merrill Lynch is not the only wirehouse that forbids its financial advisors from trading cryptocurrencies and their derivatives.
Source: Wealth Management
White paper-The Rate of Return on Everything, 1870-2015?
January 4, 2018--This paper answers fundamental questions that have preoccupied modern economic
thought since the 18th century. What is the aggregate real rate of return in the economy?
Is it higher than the growth rate of the economy and, if so, by how much?
Is there a tendency for returns to fall in the long-run? Which particular assets have the highest long-run returns? We answer these questions on the basis of a new and comprehensive dataset for all major asset classes, including-for the first time-total returns to the largest, but oft ignored, component of household wealth, housing. The annual data on total returns for equity, housing, bonds, and bills cover 16 advanced economies from 1870 to 2015, and our new evidence reveals many new insights and puzzles.
view the The Rate of Return on Everything, 1870–2015? white paper
Source: Òscar Jordà, Katharina Knoll, Dmitry Kuvshinov, Moritz Schularick, Alan M. Taylor
