Global ETF News Older than One Year
World Gold Council-Market Update: Gold in a world of negative interest rates
March 31, 2016--Investors should consider doubling their gold allocations amid negative interest rates
We have entered a new and unprecedented phase in monetary policy. Central banks in Europe and Japan have now implemented Negative Interest Rate Policies (NIRP) to counteract deflationary pressures and, in some cases, currency appreciation. Amid higher market uncertainty, the price of gold is up by 16% year-to-date-in part due to NIRP.*
Source: World Gold Council
Infographic-The Relationship Between Stock Exchanges and Indices
March 31, 2016--The NYSE and NASDAQ are the two largest stock exchanges in the world by market capitalization. However, what is their relation to major indices such as the S&P 500, S&P 100, and the Dow Jones Industrial Average?
Today's chart breaks down the composition of the 4,500+ large cap stocks that are traded on the NYSE and NASDAQ, showing how the indices are currently derived.
Source: visualcapitalist.com
BlackRock Plans to Cut About 400 Jobs in Coming Weeks
March 30, 2016--BlackRock said to continue hiring, investing in growth areas
Reductions may be biggest in the money manager's history
BlackRock Inc. plans to cut about 400 jobs in what may be the biggest round of layoffs to date at the world's largest money manager, according to people with knowledge of the matter.
Source: Bloomberg
Unscheduled adjustment in MDAX
Share class of Wincor Nixdorf AG to be replaced/Changes to be effective as of 1 April 2016
March 29, 2016--On Tuesday, Deutsche Börse announced unscheduled changes to MDAX. As a result of the expected acquisition of Wincor Nixdorf AG by the acquirer Diebold, Incorporated, the Wincor Nixdorf AG current share class (ISIN DE000A0CAYB2) in MDAX will be replaced with the tendered share class of Wincor Nixdorf AG (ISIN DE000A169QN2).
All changes will become effective on 1 April 2016.
Source: Deutsche Börse
IMF Publishes Work on the State of the Global Financial Safety Net
March 28, 2016--The International Monetary Fund (IMF) today published the paper "The Adequacy of the Global Financial Safety Net," which the IMF's Executive Board discussed during an informal session as part of the Fund's ongoing review of the international monetary system.
The paper assesses the strengths, weaknesses and challenges of the Global Financial Safety Net (GFSN)-comprised of international reserves, central bank swap arrangements, regional financing arrangements, Fund resources (complemented by other multilateral and bilateral development partners), and market-based instruments.
view the IMF The Adequacy of the Global Financial Safety Net paper
Source: IMF
World Bank-Yes, Culture Matters for Economic Development
March 28, 2016--STORY HIGHLIGHTS
'First strand' behavioral economics views people as semi-rational actors whose behavior is shaped by unconscious biases and the context of the moment of decision.
'Second strand' behavioral economics reveals how life experience, exposure, and socio-cultural interactions shape preferences, cognition, and perceptions.
A body of research demonstrates how mindsets and social attitudes can be shifted to promote development and reduce social exclusion.
Homo economicus-the rational decision maker with fixed preferences-serves as the starting point for all economics
view the World Development Report 2015: Mind, Society, and Behavior report
view the Infographic: Mind, Society, and Behavior
Source: World Bank
Will London Stock Exchange Merge With Deutsche Borse? Criticism Over Potential Deal Heats Up In UK, Germany
March 27, 2016--Criticism of the potential sale of the London Stock Exchange Group to its German rival Deutsche Börse is heating up in both countries.
Shareholders, industry veterans and politicians are split over the merger outlined this month, which would create one of the world's largest exchange operators.
Source: ibtimes.com
ETF industry is a victim of price wars
March 27, 2016--Market share bought with such low fees will not last, warns Edgar Senior.
Brutal price competition despite ever-expanding product ranges. A huge concentration of market share in one company despite constant...
Source: FT.com
Smart beta not quite as clever as marketed
March 25, 2016--Cheap stocks that outperform attract buyers and then the moment is gone
Has the investment industry's marketing push outsmarted itself? For several years, huge effort has gone in to selling "smart beta" funds. It has worked, creating great excitement. Now, not at all surprisingly, the backlash has begun.
Source: FT.com
Smart Beta, Alternative Beta, Exotic Beta, Risk Factor, Style Premia, and Risk Premia Investing: Data Mining, Arbitraged Away, or Here to Stay?
March 24, 2016--The white paper outlines foundational characteristics of smart beta strategies and the impact of data mining and arbitrage on historical backtests when attempting to calculate accurate forward-looking return estimates for such strategies.
The key identifying assumption for the particular smart betas and time periods analyzed is motivated by Nobel Laureate Eugene Fama's famous 1991 Efficient Capital Markets survey paper (i.e. "Efficient Capital Markets: II").
Source: FT.com
