ERI Scientific Beta newsletter issue no.19, October/November 2017
November 9, 2017--The latest issue of ERI Scientific Beta's quarterly newsletter focuses on the following topics:
Managing Market Risk in Smart Beta Strategies
How to Harvest Factor Premia without Suffering from Market Volatility: The Case for a Long/Short Multi-Factor Strategy
The newsletter also features an interview with Benjamin Herzog, Quantitative Strategies Product Manager at Société Générale Corporate & Investment Banking who explains the reasons for the adoption of a Scientific Beta low volatility high dividend yield strategy and a long/short multi-factor strategy, and provides performance data for ERI Scientific Beta smart factor and multi smart factor indices over different time periods to 30 September 2017...
Source: ERI Scientific Beta
Infographic-What People Think of Globalization, by Country
November 9, 2017--More than in the past, the population is divided on whether globalization is a force for good or not.
In the aftermath of events like Brexit and the Trump election, it’s clear that there's a growing movement of people that are skeptical about wider integration into the global economy and foreign cultures. While this countervailing force has always existed, only recently has it become powerful enough to change the outcomes of key elections and referendums.
Source: visualcapitalist.com
ETFGI reports assets invested in leveraged and inverse ETFs and ETPs listed globally have increased 14.1 percent in 2017 to reach a new record of 77 billion US dollars at the end of September
November 9, 2017--ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in leveraged/inverse ETFs/ETPs listed globally have increase 14.1% in the first 9 months of the year to reach a new record of US$77.14 Bn at the end of September, according to ETFGI's September 2017 Global Leverage and Inverse ETFs and ETPs Landscape report.
The leveraged/inverse ETF/ETP industry had 834 ETFs/ETPs, with 1,287 listings, assets of US$77.14 Bn, from 59 providers on 19 exchanges in 16 countries.
Source: ETFGI
IOSCO reports on implementation of G20/FSB recommendations to strengthen securities markets
November 8, 2017--The Board of the International Organization of Securities Commissions (IOSCO) today published a report on the implementation of the G20/FSB post-crisis recommendations aimed at strengthening securities markets.
The Implementation Report: G20/FSB Recommendations related to Securities Markets was prepared by IOSCO's Assessment Committee and is designed to provide further clarity on the recommendations and the role of securities market regulators in overseeing how these recommendations are implemented.
view the Implementation Report: G20/FSB Recommendations related to Securities Markets
Source: IOSCO
Ultumus-John Hancock Small Cap
November 8, 2017--John Hancock lists factor small cap ETF
John Hancock is listing a new ETF in New York that brings smart beta to US small caps, the John Hancock Multifactor Small Cap ETF (JHSC).
JHSC tracks an in-house index made of US small caps...
Asia
Korea
Samsung lists two plain vanilla and one leveraged ETF
Korean Chaebol and asset manager Samsung is listing three new ETFs. They are:
Samsung KODEX US Russell 2000 ETF H (280930)
Samsung KODEX MSCI Korea Total Return ETF (278540)....
Koomkin banks lists Korean treasury inverse futures bond...
Europe
UK
iShares cross lists and re-lists (?) bond ETFs
iShares is offering new currencies in and cross-listing some of its bond ETFs. They are:....
Italy
Source is listing two of its vanilla ETFs into Milan in euros. They are:
Source S&P 500 UCITS ETF B SPXD...
Source: ULTUMUS-Financial Data Management
Flow Traders Enters FX Market with MarketFactory
November 8, 2017--Flow Traders, a leading global technology-enabled liquidity provider specializing in exchange traded products (ETPs), and MarketFactory, an industry-leading FX technology platform, announced today a partnership that will enable investors to trade FX directly with Flow Traders on FX trading venues across the globe.
Flow Traders has a long history of trading FX as part of its hedging strategies, and identified the opportunity to further expand its role in the FX market. MarketFactory's API product, Whisperer, underpins Flow Traders' strategic ambitions to become a leading liquidity provider in FX.
Source: Flow Traders N.V.
Post-crisis restrictions on international banking can blunt growth prospects in developing countries
November 7, 2017--Growing restrictions imposed on foreign banks operating in developing countries since the 2007/9 global financial crisis are hampering better growth prospects by limiting the flow of much-needed financing to firms and households, a World Bank report warned on Tuesday.
International banking can have important benefits for development, but is no panacea, and carries risks. Developing economy policymakers would do well to consider how to maximize the benefits of cross-border banking while minimizing its costs, the World Bank's Global Financial Development Report 2017/2018: Bankers without Borders says.
view the Global Financial Development Report 2017/2018: Bankers without Borders Report
Source: World Bank
ETF Securities-Precious Metals Monitor--October 2017
November 7, 2017--Key Highlight
Gold: Bitcoin's NOT the culprit for slumping physical gold investment-it's Equities
Physical retail investment demand, particularly in the US, remains weak. This is potentially from high inventories of bars and coins combined with saturated demand from high purchases in recent years.
This trend is also notable in the sales of US American Gold Eagle coins through October accounting for only 247,500 ounces compared to 808,500 in 2016. US coin sales have not been this low since 2007 which saw only 133,000 ounces sold in the first 10 months. Many are attributing this weak investment demand due to a substitution effect from Bitcoin, a cryptocurrency, which has seen a skyrocket increase in speculation and price this year.
Source: etfsecurities.com
BetaShares-Global Market Outlook: Life in the fast lane
November 7, 2017--Month in Review
Global equities enjoyed another good month in October, buoyed by ongoing signs of synchronised growth in many parts of the word, solid corporate earnings and persistent low inflation.
Also helping was the failure of various simmering political risks-North Korea, Catalonia and the Trump "Russia probe"-to erupt and hurt investment sentiment.
The MSCI All-Country Equity Index posted a net return of 2.6% in local currency terms, and a stronger 4.4% gain in $A terms-the latter reflecting weakness in the Australian dollar during the month.
Source: betashares.com.au
Socially-responsible ETFs grow but education still needed
November 7, 2017--Classifying what is an environmental, social or sustainable investment is difficult enough.
But creating an exchange traded fund (ETF) that offers socially responsible assets can be an even more daunting task due to the variety of definitions that exist.
Source: citywire.co.uk