Global ETF News Older than One Year
Crypto trading puts pressure on bourses to open all hours
November 14, 2021--Ability to buy and sell digital assets 24/7 is driving calls for weekend trading of forex and shares
Nonstop trading in cryptocurrency markets is pushing traders of traditional assets towards working longer hours-in a reversal of pre-pandemic campaigns by banks and fund managers to shorten opening times for bourses.
Since March last year, Bitcoin and other digital assets have entered the professional investor world, with pension funds and conservative custody banks following family offices and hedge funds into the risky but fast-growing crypto market.
Source: FT.com
OECD-Assets in retirement savings plans rise despite the shock of COVID-19
November 12, 2021--Assets in retirement savings plans continued to grow in 2020 despite the shock of COVID-19, exceeding USD 56 trillion worldwide at year end and amounting to an 11% increase over 2019 figures.
This growth was supported by an increase in the number of people participating in a retirement savings plan, an increase in the overall contributions into these plans and positive investment returns in many countries.
A special feature looks into public pension reserve funds, providing an overview of their features and highlighting some of the commonalities and differences with providers of retirement savings plans.
Source: OECD
Trust in climate science is strong, but optimism about progress is limited: Global survey
November 1, 2021--Global public trust in climate science is rising-and has nearly doubled in some regions, according to a survey published today by the World Economic Forum.
When it comes to the environment, consumers held more confidence in climate science than many existing sustainability efforts from business and government leaders.
Respondents note renewable energy solutions among the top priorities that both world and business leaders should focus on addressing.
The report, The Climate Progress Survey: Business and Consumer Worries and Hopes, coincides with the global COP26 climate summit and drives home the importance of trust and collaboration for meaningful action. Read it online here.
A global study of public opinion published today by the World Economic Forum finds that while trust in climate science has surged, optimism is in shorter supply.
Most participants felt a strong personal responsibility to the environment, even as they felt businesses and governments could do more to make a difference. The majority felt that everyone should work together to tackle climate change.
The study reinforces the World Economic Forum's message that the climate crisis will require urgent cross-sector collaboration using every mechanism available to make meaningful action possible, including policy, finance, technology and education.
Source: weforum.org
Not Yet on Track: Climate Threat Demands More Ambitious Global Action
October 31, 2021--New IMF analysis shows gaps in ambition and policy needed to achieve emissions curbs that contain global warming.
In 1785, Robert Burns reflected on how humanity has come to dominate our planet:
"I’m truly sorry man's dominion, has broken nature's social union," he wrote.
The Scottish poet's words still ring true two centuries later.
Man-made climate change threatens our planet's ecosystem and the lives and livelihoods of millions of people. From the IMF perspective, climate change presents a grave threat to macroeconomic and financial stability.
Now, the window of opportunity for containing global warming to 1.5 to 2 degrees Celsius is closing rapidly.
As world leaders gather in Glasgow for COP26, a new IMF Staff Climate Note shows unchanged global policies will leave 2030 carbon emissions far higher than needed to "keep 1.5 alive." Cuts of 55 percent below baseline levels in 2030 would be urgently needed to meet that goal, and of 30 percent to meet the 2 degrees Celsius objective.
Source: IMF.org
ETFGI reports ESG ETFs and ETPs listed globally gathered a record US$119 billion US of net inflows in the first 9 months of 2021
October 29, 2021--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reports ESG ETFs and ETPs listed globally gathered a record US$119 billion of net inflows in the first 9 months of 2021. Environmental, Social, and Governance (ESG) ETFs and ETPs listed globally gathered net inflows of US$9.83 billion during September, bringing year-to-date net inflows to US$118.94 billion which is much higher than the US$47 billion gathered at this point last year.
Total assets invested in ESG ETFs and ETPs decreased by 1.3% from US$327 billion at the end of August 2021 to US$324 billion, according to ETFGI's September 2021 ETF and ETP ESG industry landscape insights report, a monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Assets of $324 billion invested in ETFs and ETPs listed globally at the end of September are the second highest on record.
Record YTD 2021 net inflows of $118.94 Bn beating the prior record of $47 Bn gathered YTD 2020.
$118.94 Bn YTD net inflows are just $30.4 Bn over full year 2020 record net inflows $88.54 Bn.
$160.48 billion in net inflows gathered in the past 12 months.
Assets increased 67.7% YTD in 2021, going from US$193 billion at end of 2020, to US$324 trillion.
67th month of consecutive net inflows.
Source: ETFGI
Financial Services Study Reveals Emerging Tech-driven Systemic Risks
October 28, 2021--Rapid technology adoption is giving rise to new risks, as exemplified by increased cyber attacks, operational disruptions and algorithmic biases
Seemingly isolated risks must be addressed before they grow and spread across the ecosystem
The findings compel financial institutions, financial and non-financial technology firms, policy-makers and regulators to work collectively on mitigation approaches
Accelerated technology adoption in the financial services sector is creating new systemic risks to the global financial system, according to a new report. Beneath the Surface: Technology-driven systemic risks and the continued need for innovation is the first publication in the World Economic Forum's two-part Technology, Innovation and Systemic Risk research initiative.
Prepared in collaboration with Deloitte, the report explores the relationship between increased technology adoption and the potential shock of cascading risk factors - for example, the domino effect that can result when hackers, disasters or geopolitics expose interconnected financial systems to a growing array of known and unknown vulnerabilities. The research additionally examines actions that can address identified risks, including the role that technology itself can play in mitigation approaches.
Source: weforum.org
We can no longer grow our economies by degrading our natural capital
October 27, 2021--If we do not curb climate change, it will push at least 132 million people into poverty over the next decade. This illustrates just how much human prosperity is linked to the well-being of our planet. When we mismanage natural assets and turn a blind eye to the longer-term impacts of our actions, our prosperity-and that of future generations -is likely to face severe consequences.
So, are we accurately valuing natural assets? When thinking about wealth, do we just think about businesses, buildings, cars, maybe oil or minerals? What about forests, mangroves, water, fish, or clean air?
In 2005, the World Bank launched a seminal publication titled "Where is the Wealth of Nations?" The report argued that measuring Gross Domestic Product (GDP) alone does not determine whether a country's development is sustainable. In many cases, economic growth is happening at the expense of nature, and therefore at the expense of future prosperity. To understand the sustainability of growth, we must look at the value of all the assets that generate income and ultimately wel-being: this is called wealth accounting. Think about it as the balance sheet for a country. GDP and wealth accounting are complementary indicators for measuring economic performance and provide a fuller picture when evaluated together.
view the World Bank Report-Changing Wealth of Nations 2021
Source: World Bank
Global Wealth Has Grown, But at the Expense of Future Prosperity: World Bank
October 27, 2021--Global wealth has grown overall-but at the expense of future prosperity and by exacerbating inequalities, according to the World Bank's new Changing Wealth of Nations report released today.
Countries that are depleting their resources in favor of shor-term gains are putting their economies on an unsustainable development path.
While indicators such as Gross Domestic Product (GDP) are traditionally used to measure economic growth, the report argues for the importance of considering natural, human, and produced capital to understand whether growth is sustainable.
The Changing Wealth of Nations 2021 tracks the wealth of 146 countries between 1995 and 2018, by measuring the economic value of renewable natural capital (such as forests, cropland, and ocean resources), nonrenewable natural capital (such as minerals and fossil fuels), human capital (earnings over a person's lifetime), produced capital (such as buildings and infrastructure), and net foreign assets. The report accounts for blue natural capital-in the form of mangroves and ocean fisheries-for the first time.
view the World Bank The Changing Wealth of Nations 2021: Managing Assets for the Future
Source: worldbank.org
How green are electric vehicles?
October 26, 2021--A policy paper dissecting existing life cycle assessments of electric vehicles and identifying potential future trends in the different stages of the vehicle life cycle, especially for batteries.
Globally, transport is responsible for 24 percent of CO2 emissions from fuel combustion. Hence, decarbonisation scenarios (e.g., IEA, IRENA, WEF) regularly stress the importance of electrifying the transport sector to achieve global climate targets.
Although the vast majority of life cycle assessments attribute electric vehicles (EVs) with less life cycle greenhouse gas (GHG) emissions than conventional combustion engine vehicles, some studies, for example, by the German General Automobile Club or the ifo Institute for Economic Research, disagree. A common second criticism of EVs focuses on the resource-intense and environmentally damaging mineral mining and battery manufacturing processes.
Source: bruegel.org
Longer Delivery Times Reflect Supply Chain Disruptions
October 25, 2021--Supply chain disruptions have become a major challenge for the global economy since the start of the pandemic. Shutdowns of factories in China in early 2020, lockdowns in several countries across the world, labor shortages, robust demand for tradable goods, disruptions to logistics networks, and capacity constraints have resulted in big increases in freight costs and delivery times.
Our chart of the week shows suppliers' delivery times in the United States and the European Union have hit record highs since late 2020 (the data goes back to 2007). IHS Markit’s suppliers' delivery times index is constructed from Purchasing Managers Index business surveys and reflects the extent of supply chain delays.
Source: IMF.org
