Global ETF News Older than One Year
IMF-Fiscal Spillovers: The Importance of Macroeconomic and Policy Conditions in Transmission
October 18, 2017--Summary:
Are fiscal spillovers today as large as they were during the global financial crisis? How do they depend on economic and policy conditions? This note informs the debate on the cross-border impact of fiscal policy on economic activity,shedding light on the magnitude and the factors affecting transmission, such as the fiscal instruments used, cyclical positions, monetary policy conditions, and exchange rate regimes.
The note assesses spillovers from five major advanced economies (France, Germany, Japan, United Kingdom, United States) on 55 advanced and emerging market economies that represent 85 percent of global output, looking at government-spending and tax revenue shocks during expansion and consolidation episodes. It finds that fiscal spillovers are economically significant in the presence of slack and/or accommodative monetary policy—and considerably smaller otherwise, which suggests that spillovers are large when domestic multipliers are also large. It also finds that spillovers from government-spending shocks are larger and more persistent than those from tax shocks and that transmission may be stronger among countries with fixed exchange rates. The evidence suggests that although spillovers from fiscal policies in the current environment may not be as large as they were during the crisis, they may still be important under certain economic circumstances.
Source: IMF
IMF-Spillovers from US Government Spending Shocks-Impact on External Positions
October 18, 2017--Summary:
This note analyzes the impact of preannounced government spending shocks in the United States on the real effective exchange rate and the trade balance. Using a vector autoregression framework that allows anticipated fiscal shocks to be identified using survey information, we find that preannounced spending shocks lead to a sizable real effective dollar appreciation and a worsening of both the aggregate trade balance and bilateral trade balances in a panel of partner countries.
The results are robust to controlling for country-specific variables like the macroeconomic and policy conditions in the recipient countries, are generalized across regions and might have decreased during the zero-interest-lower-bound regime.
Infographic-These Five Cognitive Biases Hurt Investors the Most
October 18, 2017--There is no shortage of cognitive biases out there that can trip up our brains.
By the last count, there are 188 types of these fallible mental shortcuts in existence, and they constantly impede our ability to make the best decisions about our careers, our relationships, and for building wealth over time.
Source: visualcapitalist.com
Ultumus-ETF Developments
October 16, 2017--Europe
UK and Switzerland
Lyxor adds currency alternatives to headline ETFs
Lyxor is adding more currency options to some of its headline ETFs through a series of cross-listings. Those currently listed in Switzerland will now have a US dollar option...
Asia
Korea
Polls show South Koreans aren't too worried about threats from north of the wall. And this shows up as they continue to list more ETFs.
Arirang lists "leading industry" ETF
South Korea's oldest ETF issuer Arirang has listed a new ETF in Seoul, the Arirang Leading Industry ETF 280920...
Samsung lists factor ETFs
The ETF arm of chaebol Samsung is listing two new factor ETFs, as smart beta products start to pick up in East Asia.
The Samsung Kodex High Dividend ETF (279530), will track Korean companies that pay out higher dividends....
The second ETF listed, the Samsung KODEX Min Vol ETF (279540), will track Korean companies that have lower volatility...
Internet ETF from KIM
Korea Investment Management is listing a new ETF that tracks large-cap US internet companies, the Kim Kindex US Internet ETF-Synth H 280320...
Source: ULTUMUS-Financial Data Management
ETFGI reports assets invested in ETFs/ETPs listed globally reach a new record of US$ 4.47 trillion at the end of September 2017
October 16, 2017--ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in ETFs/ETPs listed globally reached a new record of US$4.47 trillion at the end of September 2017, according to ETFGI's September 2017 global ETF and ETP industry insights report an annual paid for research
The Global ETF/ETP industry had 7,060 ETFs/ETPs, with 13,295 listings, assets of US$4.470 trillion, from 336 providers listed on 70 exchanges in 56 countries.
Source: ETFGI
ETF Securities Weekly Flows Analysis-China congress to potentially weigh on metal prices
October 16, 2017--Precious metals ETPs recorded US$155mn inflows driven by inflows into gold, platinum and the
basket ETPs.
Inflows into disruptive technology ETPs continue to grow on attractive valuation of the ROBO
Global(R) Robotics and Automation UCITS Index compared to the MSCI World Technology Index.
Investors favoured exposure to the Eurozone to specific European countries as Brexit negotiations face a deadlock, increasing the uncertainty over the future relationship between the UK and EU.
Gold ETPs recorded inflows for the second consecutive week as the Chinese market reopened. Last week saw the price of gold rising to nearly US$1,300/oz after falling 6.3% from its 12-month high in early September. This could be a transitory recovery as the prospect of a rate hike and a stronger US Dollar is likely to weigh further on gold prices in the near term.
Source: etfsecurities.com
News roundup: Record $6.6bn flows into global equity funds
October 13, 2017--Investors poured a record amount of money into global equity funds over the past week, as a host of regional risks, coupled with broad economic growth, increased their appetite for geographical diversification, the Financial Times reported.
The flows helped push equity prices higher, and the FTSE All World has extended its rise into record territory this week.
Source: Money Management Report
Neoglobalization, China's Silk Road and the Middle East
October 13, 2017--The concept of globalization, as known over the past few decades, is becoming opaque. Foundations established most notably during the Reagan era, including free markets, open economies, small governments, private initiative and corporate dominance, are losing coherence.
The ongoing shift in economic growth diverts away from manufacturing and services towards disruptive technologies, as much as the gradual shift in economic drive away from Western economies towards China and its environs, have hastened the blur. Politics in the United States echoed protective noises and Brexit followed.
One Belt One Road Initiative (BRI) took shape.
Source: Ameinfo.com
FSB publishes stocktake on cybersecurity regulatory and supervisory practices
October 13, 2017-The Financial Stability Board (FSB) today published the results of a stocktake on cybersecurity regulations, guidance and supervisory practices which had been delivered to this week's meeting of G20 Finance Ministers and Central Bank Governors in Washington DC.
With the aim of enhancing cross-border cooperation, the G20 at its March 2017 meeting in Baden-Baden asked the FSB, as a first step, to perform the stocktake.
Source: Financial Stability Board (FSB)
Dimon and Fink unite on need to 'crush' bitcoin
October 13, 2017--Wall Street power duo hit out at virtual currency as being only valuable to criminals
Governments around the world will "crush" bitcoin before long, according to two of the most powerful men on Wall Street, who argue that the only real value in the fast-rising virtual currency is as a tool for criminals and money launderers.
Source: FT.com
