Global ETF News Older than One Year
IMF-Benefits and Costs of Bank Capital
March 2, 2016--Few issues have elicited a more contentious debate than the appropriate level of capital requirements.
Proponents of stricter regulation point to the risks associated with high bank leverage and the exorbitant
costs of the global financial crisis.
Opponents of higher capital requirements argue that these may significantly increase the cost of bank credit and hinder economic activity.
Source: IMF
Preparing for the Robots: Which Skills for 21st Century Jobs?
March 2, 2016--Christian Bodewig, Program Leader for Inclusive Growth in European Union Member States Brookings
The robots are coming and are taking our jobs. Or are they? The media and the blogosphere have been buzzing lately about the impact of artificial intelligence and robotics on our lives.
In particular, the debate on the impact of automation on employment has amplified concerns about the loss of jobs in advanced economies.
And accelerating technological change points the spotlight on questions like: Do workers,,blue and white collar alike, possess the right skills for a changing labor market? Are they prepared for the employment shocks that come with the so-called "fourth industrial revolution"?
Source: World Bank
Infographic-The World Map of the U.S. Trade Deficit
March 1, 2016--The United States has now run an annual trade deficit for 40 years in a row.
Last year was no exception, and in 2015 the U.S. had over $1.5 trillion in exports while importing $2.2 trillion of goods. The resulting trade deficit was-$735 billion.
Source: .visualcapitalist.com
Eurex: Trading statistics February 2016
Eurex Exchange: ADV 7.2 million contracts/ISE: ADV 2.6 million contracts
March 1, 2016--In February 2016, the international derivatives markets of Eurex, part of Deutsche Börse Group, recorded an average daily volume of 9.8 million contracts (February 2015: 7.8 million). Of those, 7.2 million were Eurex Exchange contracts (February 2015: 5.8 million), and 2.6 million contracts (February 2015: 1.8 million) were traded at the New York based International Securities Exchange (ISE).
The volume traded on the spot and derivatives power markets of the European Energy Exchange (EEX) amounted to 300.3 terawatt hours. Eurex Repo recorded in all markets in February 2016 an average outstanding volume of 139.8 billion euros.
Source: Eurex
Boom time for exchange options trading
March 1, 2016--Investors and traders are increasingly buying and selling options on futures contracts for managing their portfolios, rather than spending precious cash reserves, spurring a boom in activity for the sector.
Source: FT.com
MSCI tightens index composition rules
March 1, 2016--Index provider MSCI has said it will no longer include in its indices companies that the Hong Kong regulator has flagged for a high concentration of ownership, after steep rise and sharp plunge of Hanergy stock last year raised investor concerns over potential manipulation of closely-held stocks in the territory.
Source: FT.com
Animation: Wealth vs. Population for USA, China, and India (1970-2030)
February 29, 2016--China already consumes mind-boggling amounts of raw materials, contributes 30.3% of global growth, and has a new spending class of 415 million millennials that is starting to demand middle class comforts.
But, if you’re still skeptical of this new economic paradigm, today's animation shows it all in the simplest terms possible.
Source: visualcapitalist.com
Vanguard Lowers Fees on 42 Funds
The latest round of reduced expense ratios saved investors $55 million, according to the fund giant
February 29, 2016--Vanguard says that 42 of its mutual funds, including seven ETFs and four target-date funds-are now being offered to investors with lower fees.
According to the fund group, those invested in the funds recently saved $55 million as of Friday. This is the third announced reduction in Vanguard's fiscal year 2015; the reported changes have helped investors in 130 fund shares save a total of $142 million.
Source: thinkadvisor.com
Vanguard Lowers Fees on 42 Funds
The latest round of reduced expense ratios saved investors $55 million, according to the fund giant
February 29, 2016--Vanguard says that 42 of its mutual funds, including seven ETFs and four target-date funds-are now being offered to investors with lower fees.
According to the fund group, those invested in the funds recently saved $55 million as of Friday. This is the third announced reduction in Vanguard's fiscal year 2015; the reported changes have helped investors in 130 fund shares save a total of $142 million.
Source: thinkadvisor.com
Institutionalizing Countercyclical Investment: A Framework for Long-term Asset Owners
February 29, 2016--Summary: Do portfolio shifts by the world's largest asset owners respond procyclically to past returns, or countercyclically to valuations? And if countercyclical investment(with both market-stabilizing and return-generating properties) is a public and private good, how might asset owners be empowered to do more of it? These two questions motivate this study.
Based on analysis of representative portfolios (totaling $24 trillion) for a range of asset owners (central banks, pension funds, insurers and endowments), portfolio changes typically appear procyclical. In response, I suggest a framework aimed at jointly bolstering long-term returns and financial stability should:(i) embed governance practices to mitigate 'multi-year return chasing;' (ii) rebalance to benchmarks with factor exposures best suited to long-term investors; (iii) minimize principal-agent frictions; (iv) calibrate risk management to minimize long-term shortfall risk (not short-term price volatility); and (v) ensure regulatory conventions do not amplify procyclicality at the worst possible times.
Source: IMF
