Global ETF News Older than One Year
Bassanese Bites-Stagflation
Global markets
U.S. stocks sagged last week-absent any clear trigger -reflecting general concerns with a combination of weakening growth due to delta, but also persistent pricing pressures due to lingering supply bottlenecks, or what some are already over-excitedly suggesting is a return to 'stagflation'.
To be sure, the Fed's Beige Book review on the economy did note a modest downshift in activity during August with fewer people travelling and eating out as delta cases mount. At the same time, business also reported cost pressures and difficulty in attracting staff. Add to the mix Friday's report of another solid gain in producer prices during August, and general commentary from Fed speakers suggesting most are still keen to announce a tapering in bond purchases by year-end despite short-run delta uncertainties.
Source: betashares.com.au
Demand for advice rises as not all investors go it alone
September 13, 2021--Alongside a surge in retail share trading, traditional and 'robo' advice is being sought
New share trading account openings have surged over the past year, against a backdrop of strong market gains and central bank support stimulus measures that have kept interest rates low- all of which have increased the risk tolerance of some retail investors.
Growing demand for advisory services in the wake of the pandemic has ignited a race among asset managers to acquire customers needing help to navigate volatile markets.
But the investment climate has also spurred demand for financial advice, via pure digital or "robo" services, as well as more hybrid models that combine technology with a human touch. view more
Source: ft.com
Crypto ETF assets treble as investors take risks
September 13, 2021--Regulators and advisers are divided on digital currency and 'inverse' funds
The bulk of the $9tn exchange traded funds industry consists of plain vanilla index trackers focused on mainstream assets. But a couple of much higher risk variants are now growing rapidly-albeit from a low base.
Source: ft.com
ETF inflows shoot past 2020's full-year record total
September 10, 2021--Worldwide net investor inflows reaches $834.2bn at the end of August
Inflows into exchange traded funds have surged past 2020's record total globally as enthusiasm for the low-cost vehicles accelerates, prompting growing numbers of traditional fund managers to launch their own ETFs.
Worldwide net investor inflows reached $834.2bn at the end of August, already surpassing the last year's total of $762.8bn. Rising markets and investments helped global assets held in ETFs to balloon to $9.7tn, more than double the $4.8tn managed in the funds and products at the end of 2018, according to the data provider ETFGI.
Source: ft.com
IOSCO Statement on Credit Sensitive Rates
September 8, 2021--The Board of the International Organisation of Securities Commissions (IOSCO) reiterates the importance of continued transition to robust alternative financial benchmarks, i.e., Risk-Free Rates, to mitigate potential risks arising from the cessation of LIBOR, including USD LIBOR.
IOSCO wishes to highlight those alternative financial benchmarks will need to be compliant with the IOSCO Principles on Financial Benchmarks (IOSCO Principles).
Benchmark administrators should be mindful that demonstrating compliance with the IOSCO Principles is not a one-time exercise and alternative benchmarks should be IOSCO compliant at all times.
In light of some alternatives being suggested, notably credit sensitive rates, IOSCO calls for greater attention to Principles 6 and 7. Principle 6 asks administrators to take into account the 'relative size of the underlying market in relation to the volume of trading'. Principle 7 emphasises 'data sufficiency in a benchmark's design to accurately and reliably represent the underlying market' measured by the benchmark. Therefore, in line with Principles 6 and 7, IOSCO calls on administrators to assess whether the systemic benchmarks that are used extensively are based on active markets with high volumes of transactions, representing the underlying interest they intend to measure and whether such benchmarks are resilient during times of stress.
Source: iosco.org
How to build smart, zero carbon buildings -and why it matters
September 8,2021-Buildings represent 39% of global greenhouse gas emissions;
Reducing carbon emissions in buildings will be critical to achieving net zero emissions by 2050;
Efficient, zero carbon buildings take advantage of available, cost-effective technology to reduce emissions while increasing health, equity and economic prosperity in local communities.
Reducing carbon emissions in buildings will be critical to achieving the Paris climate goals and achieving net zero emissions by 2050.
Buildings represent 39% of global greenhouse gas emissions, including 28% in operational emissions and 11% in building materials and construction.
Global building floorspace is projected to double by 2060 and only 3% of investment in new construction is green and efficient, locking in high emissions for decades. The renovation rate for existing buildings is barely 1%, less than a third of the rate needed to meet the Paris climate goals.
Source: World Economic Forum
IOSCO publishes guidance for intermediaries and asset managers using Artificial Intelligence and Machine Learning
September 7, 2021--The Board of the International Organization of Securities Commissions (IOSCO) today published guidance to help its members regulate and supervise the use of Artificial Intelligence (AI) and Machine Learning (ML) by market intermediaries and asset managers, following its consultation report published in June.
The use of AI and ML may benefit market intermediaries, asset managers and investors by increasing the efficiency of existing processes, reducing the cost of investment services and freeing up resources for other activities. However, it may also create or amplify risks, potentially undermining financial market efficiency and harming consumers and other market participants.
Source: IOSCO
Climate risks to add $183bn to property insurance costs by 2040, Swiss Re predicts
September 6, 2021--Wildfires, winter storms and floods have already made 2021 costly for the industry.
Source: FT.com
Five Things to Know about Carbon Pricing
September 6, 2021--Carbon pricing shows serious promise as a tool in the fight against climate change
Deterring the use of fossil fuels, such as coal, fuel oil, and gasoline, is crucial to reducing the buildup of heat-trapping greenhouse gases in the atmosphere. Carbon pricing provides across-the-board incentives to reduce energy use and shift to cleaner fuels and is an essential price signal for redirecting new investment to clean technologies.
Here are five things to know about carbon pricing.
1. Carbon pricing can be readily implemented. Carbon pricing, implemented through a tax on the carbon content of fossil fuels or on their carbon dioxide (CO2) emissions, is straightforward to administer as an extension of existing fuel taxes. Carbon taxes can provide certainty about future emissions prices, which makes a difference when it comes to mobilizing clean technology investment. Revenue from carbon taxes can be used to lower burdensome taxes on workers and businesses or to fund investment in climate technology.
Source: IMF.org
Bitcoin futures volume climbed to $1.73 trillion in August
September 3, 2021--Volumes across major markets for bitcoin futures hit $1.73 trillion in August, representing an increase from July, according to data collected by The Block Research.
The August figure represents a 17 percent increase from July's $1.47 trillion in futures volume. The futures market's peak occurred in May, when volumes reached $2.56 trillion. As shown in the chart, Binance once again took the most market share for bitcoin futures during August.
Source: theblockcrypto.com