Global ETF News Older than One Year
Investing in Nature Unlocks Development Benefits
August 5, 2021-STORY HIGHLIGHTS
Loss of nature and biodiversity worldwide has become a crisis. The World Bank Group's approach paper on biodiversity and ecosystem services,Unlocking Nature-Smart Development,argues that the global nature crisis is both a systemic risk for development and a development opportunity.
The report proposes six global response areas to guide governments and inform broader discussions on how to integrate nature into development planning.
Solutions to the global nature crisis lie in the economic sectors that put the greatest pressure on biodiversity and ecosystem services: land and ocean use,infrastructure,and energy and extractives.
Source: World Bank
Gold ETFs continue growth with slight inflows in July
August 5, 2021--July highlights
Flows into global gold ETFs were marginally positive in July, with inflows of 11.1 tonnes (t) (US$669mn, +0.3%AUM). Inflows into European and Asian funds were mostly offset by outflows from large North American funds.
Overall, the positive flows came alongside a recovery in gold prices, particularly in the latter half of the month amid concerns of uncertain global growth outlook and a reaffirmed commitment by central banks to continue easy money policies despite elevated inflation.
Source: World Gold Council
These countries are the most optimistic about economic recovery from the pandemic
August 5, 2021--China is the most optimistic country when people are asked when they think there will be an economic recovery from the pandemic.
By comparison, people in Russia are the most pessimistic.
One thing most people seem to agree on is that they expect their governments to take responsibility for leading the return to growth.
More than half of people in China think the economy there has already recovered from the pandemic.
That's one of the headline findings of a survey carried out by Ipsos and the World Economic Forum,between 25 June and 9 July. Altogether,more than 21,500 people in 29 countries were quizzed on their views of post-pandemic economic life.
Some 56% of Chinese respondents said things were already back to where they should be. That number shoots up to 83% when those who think the recovery will have happened within a year are factored in.
In Saudi Arabia too,a majority of people (63%) think the recovery will have happened in a year's time. There, 25% say the economy has already recovered.
Source: weforum.org
BetaShares Market Trends: August 2021 Global markets-low yields supporting equities
August 4, 2021--Global equities pushed higher in July, and the outlook remains encouraging.
Despite a renewed wave of global COVID cases, rising vaccination rates have meant even fewer are ending up in hospital or dying-allowing major economies such as the United States and Europe to avoid a return to lockdowns.
At the same time, inflation fears appear to have peaked with central banks still willing to look through short-run supply related prices increases. This has resulted in a further decline in long-term bonds yields, which is supportive of above average equity valuations.
Source: betashares.com.au
Financial regulators urgently need to get a grip on 'Big Tech'-BIS
August 2, 2021--Central banks and financial regulators urgently need to get to grips with the growing influence of 'Big Tech', according to top officials from central bank umbrella group the Bank for International Settlements (BIS).
Global watchdogs are increasingly wary that the huge amounts of data controlled by groups such as Facebook (FB.O), Google (GOOGL.O), Amazon (AMZN.O) and Alibaba (9988.HK) could allow them to reshape finance so rapidly that it destabilises entire banking systems.
Source: reuters.com
WTO report: Full trade recovery at risk without equitable vaccine roll-out
July 29, 2021--WTO economies from mid-October 2020 to mid-May 2021 exercised trade policy restraint and refrained from an acceleration of protectionism that would have further harmed a world economy reeling from the COVID-19 pandemic, according to the Director-General's mid-year report on trade-related developments presented to members on 29 July.
The report calls on WTO members to ensure that markets remain open and predictable, and warns that failing to ensure wider access to COVID-19 vaccines could undermine the global economic and trade recovery. "This report clearly suggests that trade policy restraint by WTO members has helped limit harm to the world economy. However, some pandemic-related trade restrictions do remain in place and the challenge is to ensure that they are indeed transparent and temporary." said Director-General Ngozi Okonjo-Iweala, who presented the report to WTO members.
Source: wto.org
Thematic ETFs that could be the ones to watch
July 30, 2021--Investors' Chronicle convenes a panel once a year to discuss ETFs that could prove promising
The bumper year thematic funds had in 2020 is not reflected in the Investors' Chronicle 2021 IC Top 50 ETFs, for good reason.
That list focuses on more conventional tracker funds that work well as the building blocks of an investment portfolio, so it only includes four thematic exchange traded funds.
We also remain cautious about holding thematics as the mainstay of a portfolio due to their serious drawbacks and the substantial due diligence required before you buy them and while you hold them. Thematics are not necessarily "sleep easy at night" products.
Source: FT.com
ETFGI reports record assets and net inflows in ESG ETFs world-wide of US$293 billion and US$83 billion respectively at the end of H1 2021
July 29, 2021--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reported today record assets and net inflows in ESG (Environmental, Social, and Governance) ETFs and ETPs listed globally of US$293 billion and US$83 billion respectively at the end of H1 2021.
ESG ETFs gathered net inflows of US$9.09 billion during June, bringing year-to-date net inflows to a record US$83.04 billion which is much higher than the US$29.49 billion gathered at this point last year. Total assets invested in ESG ETFs and ETPs increased by 4.6% from US$280 billion at the end of May 2021 to US$293 billion, according to ETFGI's June 2021 ETF and ETP ESG industry landscape insights report, is a monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Record $293 Bn invested in global ESG ETFs and ETPs industry at end of H1 2021.
Assets have increased 51.6% in H1 going from $193 Bn at end of 2020 to $293 Bn at end of H1 2021.
Record H1 net inflows of $83.04 Bn beating prior record of $29.49 Bn gathered in H1 2020.
$83.04 Bn H1 net inflows are just $5.91 Bn below full year 2020 record net inflows $88.95 Bn.
$199.35 Bn in net inflows gathered in the past 12 months.
64th month of consecutive net inflows
Equity ETFs and ETPs listed in Europe gathered a record $59.61 Bn in net inflows in H1 2021.
Source: etfgi.com
World Bank-EFI Prospects Group Global Monthly-July 2021
July 27, 2021--Overview
Incoming data point to solid but moderating global activity in the second quarter.
Resurgences of new COVID-19 cases continue to hinder the recovery across many EMDEs, especially in East Asia and Pacific and in Sub-Saharan Africa.
Financing conditions, while still benign, have tightened in EMDEs amid worsening pandemic trends and uncertainty about the path for monetary policy in advanced economies.
Special Focus: Emerging Inflationary Pressures-Cause for Alarm?
Inflation has risen above pre-pandemic levels globally, at a faster pace than after previous global recessions.
A plunge in aggregate demand during the pandemic contributed significantly to global inflation developments.
While inflation pressures are expected to abate beyond 2021, high inflation in the short term may complicate policy choices, especially in those EMDEs that rely on highly accommodative domestic policies to ensure a durable recovery.
Source: worldbank.org
New IOSCO SPAC Network discusses regulatory issues raised by SPACs
July 27, 2021--IOSCO's SPAC network held its first meeting yesterday to discuss the issues raised by special purpose acquisition companies.
While SPACs have long existed, transactions have surged recently, drawing regulatory attention to the issues SPACs raise. While SPACs may offer alternative sources of funding and provide opportunities for investors, they may also raise regulatory concerns.
Following an initial discussion on this issue, the IOSCO Board agreed at its meeting on 9 June 2021 to establish an IOSCO SPAC Network to facilitate information sharing about SPACs and monitor developments in this area. The IOSCO SPAC network will be chaired by Jean-Paul Servais, Chairman of the Financial Services and Markets Authority, Belgium and Vice-Chair of the IOSCO Board.
Source: IOSCO
