Global ETF News Older than One Year
Inflation Remains Risk Confronting Financial Markets
July 27, 2023--Central banks may keep interest rates higher for longer than currently priced; given investors' benign inflation outlook and growing expectations for a soft landing, this could increase financial stability risks and weigh on growth
Overall inflation has moderated meaningfully in recent months in the United States and euro area, as energy and food prices have fallen significantly. Year-on-year headline inflation is now around 3 percent in the United States and below 5.5 percent in the euro area.
However, core inflation, excluding food and energy prices, has declined more slowly. Services inflation has proven to be particularly sticky.
According to market pricing, investors expect headline inflation to continue to decline quite rapidly in coming quarters. However, some market participants still see upside risks to the inflation outlook, likely reflecting recent stickiness in core inflation. Indeed, pricing from inflation options-financial instruments that offer protection against inflation moving higher or lower than its current level-shows that such upside risk is particularly pronounced in Europe, where investors assign roughly similar odds to inflation returning to the European Central Bank's 2 percent target and inflation remaining around 4 percent. In the United States, investors appear to put high odds on inflation being above target at around 3 percent.
Source: imf.org
Hottest July ever signals 'era of global boiling has arrived' says UN chief
July 27, 2023--As wildfires raged across Southern Europe and North Africa, top UN climate scientists said on Thursday that it was "virtually certain" that July 2023 will be the warmest on record.
Echoing that warning in New York, UN Secretary-General António Guterres said that "short of a mini-Ice Age" in coming days, July 2023 would likely "shatter records across the board".
"Climate change is here. It is terrifying. And it is just the beginning," said the UN chief, warning that the consequences are as clear as they are tragic: "children swept away by monsoon rains, families running from the flames (and) workers collapsing in scorching heat."
'Remarkable and unprecedented'
Tweet URL In Geneva, scientists from the World Meteorological Organization (WMO) and the European Commission's Copernicus Climate Change Service described conditions this month as "rather remarkable and unprecedented".
They said that new data showed that so far, July has seen the hottest three-week period ever recorded and the three hottest days on record.
Source: news.un.org
IMF-World Economic Outlook Update-Near-Term Resilience, Persistent Challenges July 2023
July 25, 2023--The global recovery is slowing amid widening divergences among economic sectors and regions
Global growth is projected to fall from an estimated 3.5 percent in 2022 to 3.0 percent in both 2023 and 2024. While the forecast for 2023 is modestly higher than predicted in the April 2023 World Economic Outlook (WEO), it remains weak by historical standards.
The rise in central bank policy rates to fight inflation continues to weigh on economic activity. Global headline inflation is expected to fall from 8.7 percent in 2022 to 6.8 percent in 2023 and 5.2 percent in 2024. Underlying (core) inflation is projected to decline more gradually, and forecasts for inflation in 2024 have been revised upward.
The recent resolution of the US debt ceiling standoff and, earlier this year, strong action by authorities to contain turbulence in US and Swiss banking reduced the immediate risks of financial sector turmoil.
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Source: imf.org
ETFGI reports Thematic ETFs listed globally gathered net inflows of US$6.62 billion during June
Total assets invested in Thematic ETFs have increased by 18.3% YTD in 2023, going from $221 Bn at end of 2022 to $261 Bn, according to ETFGI's June 2023 ETF and ETP Thematic industry landscape insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Source: ETFGI
34% of Professional Investors Are Interested in Building Biodiversity-themed Financial Products
The virtual event shed light on the substantial commitment of financial institutions to incorporate biodiversity into their decision-making processes. Notably, the 140 signatories of the Finance for Biodiversity initiative collectively manage an impressive $20 trillion in assets. This signals a noteworthy upcoming shift within the industry; currently investments focused on biodiversity represent only $2.9 billion compared to the over $40 trillion associated with the broader ESG market.
Source: Clarity AI
Emerging Market Economies Bear the Brunt of a Stronger Dollar
In emerging market economies, a 10 percent US dollar appreciation, linked to global financial market forces, decreases economic output by 1.9 percent after one year, and this drag lingers for two and a half years. In contrast, the negative effects in advanced economies are considerably smaller in size, peaking at 0.6 percent after one quarter and are largely gone in a year.
Source: imf.org
BlackRock predicts 'trillions' in fixed income investment as profits rise
Investors have flocked to money market funds to take advantage of rising interest rates- pushing the total in US MMFs above $5tn- but BlackRock said much of that horde was poised to shift into fixed income once investors feel sure that yields would not be hit by further Fed action.
Source: ft.com
Worldwide Digital Asset Based Exchange Traded Products AUM Grew 76% Year-To-Date and 10.7% In June
The AUM increase was at a 52% premium to the underlying value of digital assets, which grew slower at 50% since the beginning of the year. This can be attributed to the price rise of the main digital asset that underpins ETPs, i.e., Bitcoin, vis-a-vis smaller alternative coins and as well to strong capital inflows into these listed products during the month of June.
Source: Fineqia International Inc.
Scientists say they've found a site that marks a new chapter in Earth’s history
The term Anthropocene, first proposed in 2000 to reflect how profoundly human activity has altered the world, has become a commonly used academic buzzword uniting different fields of study.
"When it's 8 billion people all having an impact on the planet, there's bound to be a repercussion," said Colin Waters, an honorary professor at the Geography, Geology and the Environment School at the University of Leicester and chair of the Anthropocene Working Group.
Source: cnn.com
1 in 6 asset and wealth managers to vanish by 2027
In response, 73% of asset managers are considering strategic consolidation to gain access to new segments, increase market share and mitigate risks.
Source: funds-europe.com
July 21, 2023--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs ecosystem, reported today that Thematic ETFs listed globally gathered net inflows of US$6.62 Bn during June, bringing year to date net inflows to US$19.11 billion.
Thematic ETFs listed globally gathered net inflows of $6.62 Bn during June.
YTD net inflows of $19.11 Bn are the fourth highest on record, while the highest recorded YTD net inflows were $60.58 Bn for 2021, followed by YTD net inflows of $21.44 Bn for 2022 and YTD net inflows of $17.52 Bn for 2020.
9th month of consecutive net inflows.
Assets of $261 Bn invested in Thematic ETFs and ETPs listed globally at the end of June 2023.
Assets increased by 18.3% YTD in 2023, going from $221 Bn at end of 2022 to $261 Bn.
July 19, 2023--Clarity AI and GIST Impact Host Successful Virtual Event on Investing and Biodiversity
Global sustainability tech platform, Clarity AI and impact data and analytics provider GIST Impact recently convened over 180 asset managers, wealth managers, and asset owners for a highly engaging virtual event, to discuss the crucial role of biodiversity in the investment landscape.
July 19, 2023--The US dollar's strengthening last year to a 20-year high had major implications for the global economy. We examine these spillovers from the currency's appreciation in our latest External Sector Report.
Building on recent research by Maurice Obstfeld and Haonan Zhou, we find that negative spillovers from US dollar appreciations fall disproportionately on emerging market economies when compared with smaller advanced economies.
July 13, 2023-Assets under management at world's largest money manager climb to $9.4tn, even as net inflows miss expectations
BlackRock predicted a surge of investment into bond funds once the US Federal Reserve stops raising interest rates as the money manager beat earnings expectations and reported assets under management had recovered to $9.4tn.
July 11, 2023--Fineqia International Inc. (the "Company" or "Fineqia") , a leading digital asset and fintech investment business, announces that its analysis of global Exchange Traded Products (ETPs) with digital assets as underlying collateral, revealed a 76% growth in total Assets Under Management (AUM) in the year-to-date (YTD) period amid renewed interest by investors.
July 11, 2023--Scientists have identified the geological site that they say best reflects a proposed new epoch called the Anthropocene- a major step toward changing the official timeline of Earth's history.
July 10, 2023--One in six asset and wealth management companies globally is expected to disappear or be acquired by 2027, twice the normal turnover rate, according to a survey by PwC.
The '2023 Global Asset and Wealth Management Survey' highlights the industry's struggle with digital transformation, changing investor expectations, consolidation and "retailisation."
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