Global ETF News Older than One Year
A Future with High Public Debt: Low-for-Long Is Not Low Forever
April 20, 2021--Many countries are experiencing a combination of high public debt and low interest rates. This was already the case in advanced economies even prior to the pandemic but has become even starker in its aftermath. A growing number of emerging market and developing economies are likewise enjoying a period of negative real rates-the interest rate minus inflation-on government debt.
The IMF has called on countries to spend as much as they can to protect the vulnerable and limit long-lasting damage to economies, stressing the need for spending to be well targeted. This is especially critical in emerging market and developing economies, which face tighter constraints and associated fiscal risks, where greater prioritization of spending is of the essence.
Source: IMF.org
BlackRock assets under management surge to record $9tn
April 15, 2021--Investors pour money into fixed income and equity funds
BlackRock's assets under management ballooned to a record $9tn in the first quarter, boosted by record fund inflows across its investment platform, led by fixed income.
Shares in BlackRock rose 2 per cent to a fresh high on Thursday after the results, which eclipsed earnings and revenue forecasts. Investors in particular cheered higher performance fees and organic growth in assets that came in above the long-term target set by the world's largest asset manager.
Source: FT.com
Oil Surges to Highest in a Month With U.S. Demand Picking Up
April 15, 2021--Oil surged to the highest level in a month --breaking out of a weeks-long holding pattern-- as shrinking crude stockpiles in the U.S. supported hopes for a global demand recovery.
Futures rose 4.9% in New York, the most since late March, after trading in a $5 range for weeks.
U.S. crude inventories are at the lowest since February following the biggest decline in two months, according to the Energy Information Administration. At the same time, a gauge for gasoline demand ticked higher for a seventh straight week. That’s helped prices that have struggled to rally past $60 a barrel.
Source: au.finance.yahoo.com
ETFGI reports assets invested in ETFs and ETPs listed globally reach a new record of US$ 8.56 trillion at the end of Q1
April 14, 2021--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reported today that assets invested in ETFs and ETPs listed globally reach a new record of of US$ 8.56 trillion at the end of Q1. The US$136.20 billion in net inflows gathered during March are the second highest monthly inflows behind the prior record US$139.89 billion gathered during February 2021.
At the end of Q1, the year to date, net inflows are a record US$359.17 billion which are significantly higher than the prior record US$197.2 billion gathered during Q1 2017 and higher than the US$117.61 billion gathered at the end of Q1 2020. Assets invested in the global ETFs and ETPs industry have increased by 2.9% from the prior record US$8.32 trillion at the end of February 2021, to the new record US$8.56 trillion at the end of Q1, according to ETFGI's March 2021 Global ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Assets invested in ETFs and ETPs listed globally reach a record $8.56 trillion at the end of Q1 2021.
The $136.20 Bn in net inflows gathered during March are the second highest monthly inflows behind the prior record $139.89 Bn gathered in February 2021.
Record net inflows year to date of $359.17 Bn at of end of Q1 are significantly higher than the prior record $197.2 billion gathered during Q1 2017.
Source: ETFGI
BlackRock secures largest-ever ETF launch as green investing wave builds
April 9, 2021--Institutional investors have invested $1.25 billion in a new U.S. fund aimed at identifying the winners of the transition to a low-carbon world, making it the largest exchange-traded fund ever launched. ESG products.
The BlackRock US Carbon Transition Readiness Fund opened on Thursday, surpassing the iShares ESGM SCIUSA Leaders Fund, which debuted in May 2019 at $850 million and was the largest ETF list before.
A sister fund that invests in companies outside the United States also launched Thursday after raising $ 475 million from investors. This is also one of the largest new ETFs ever launched.
Source: californianewstimes.com
IMF-Global Financial Stability Report, April 2021: Preempting a Legacy of Vulnerabilities
April 6, 2021--Summary:
Extraordinary policy measures have eased financial conditions and supported the economy, helping to contain financial stability risks. Chapter 1 warns that there is a pressing need to act to avoid a legacy of vulnerabilities while avoiding a broad tightening of financial conditions. Actions taken during the pandemic may have unintended consequences such as stretched valuations and rising financial vulnerabilities. The recovery is also expected to be asynchronous and divergent between advanced and emerging market economies.
Given large external financing needs, several emerging markets face challenges, especially if a persistent rise in US rates brings about a repricing of risk and tighter financial conditions. The corporate sector in many countries is emerging from the pandemic overindebted, with notable differences depending on firm size and sector. Concerns about the credit quality of hard-hit borrowers and profitability are likely to weigh on the risk appetite of banks. Chapter 2 studies leverage in the nonfinancial private sector before and during the COVID-19 crisis, pointing out that policymakers face a trade-off between boosting growth in the short term by facilitating an easing of financial conditions and containing future downside risks. This trade-off may be amplified by the existing high and rapidly building leverage, increasing downside risks to future growth. The appropriate timing for deployment of macroprudential tools should be country-specific, depending on the pace of recovery, vulnerabilities, and policy tools available. Chapter 3 turns to the impact of the COVID-19 crisis on the commercial real estate sector. While there is little evidence of large price misalignments at the onset of the pandemic, signs of overvaluation have now emerged in some economies. Misalignments in commercial real estate prices, especially if they interact with other vulnerabilities, increase downside risks to future growth due to the possibility of sharp price corrections.
Source: IMF.org
How Rising Interest Rates Could Affect Emerging Markets
March 5, 2021--Rapid vaccine rollout in the United States and passage of its $1.9 trillion fiscal stimulus package have boosted its expected economic recovery. In anticipation. longer-term US interest rates have risen rapidly. with the rate on 10-year Treasury securities going from under 1 percent at the start of the year to over 1.75 percent in mid-March.
A similar surge has occurred in the United Kingdom. In January and February. interest rates also rose somewhat in the euro area and Japan before central banks there stepped in with easier monetary policy.
Emerging and developing economies are viewing rising interest rates with trepidation. Most of them are facing a slower economic recovery than advanced economies because of longer waits for vaccines and limited space for their own fiscal stimulus. Now, capital inflows to emerging markets have shown signs of drying up.
Source: IMF
IMF-Fiscal Monitor April 2021 A Fair Shot
April 1, 2021--Full Report : A Fair Shot
This report overviews countries' fiscal actions in response to COVID-19 and discusses how governments' policies should adapt to get ahead of the pandemic and set the stage for a greener, fairer, and more durable recovery.
Global vaccination should be scaled up as it can save lives and will eventually pay for itself with stronger employment and economic activity. Until the pandemic is brought under control globally, fiscal policies must remain flexible and supportive, while keeping debt at a manageable level over the long term. Governments also need to adopt comprehensive policies, embedded in medium-term frameworks, to tackle inequalities-especially in access to basic public services-that were exacerbated by the COVID-19 pandemic and may cause income gaps to persist. Investing in education, healthcare, and early childhood development and strengthening social safety nets financed through improved tax capacity and higher progressivity, can strengthen lifetime opportunities,improve trust, and contribute to more social cohesion.
Source: IMF
Morningstar unleashes robots to write fund research
March 27, 2021--Robots were already being used to generate the analyst rating itself on thousands of smaller funds
Robots are being let loose to write investment reports for Morningstar, the research house that helps investors choose among thousands of mutual and exchange traded funds for saving and retirement.
At a time when the finance industry is debating the workloads of its staff during a boom in activity and a disruptive pandemic, Morningstar has found a way to increase its written research without further taxing its army of human analysts.
Source: luxtimes.lu
IMF-Global economy on firmer ground, but with divergent recoveries amid high uncertainty
March 27, 2021--Global prospects remain highly uncertain one year into the pandemic. New virus mutations and the accumulating human toll raise concerns, even as growing vaccine coverage lifts sentiment. Economic recoveries are diverging across countries and sectors, reflecting variation in pandemic-induced disruptions and the extent of policy support. The outlook depends not just on the outcome of the battle between the virus and vaccines-it also hinges on how effectively economic policies deployed under high uncertainty can limit lasting damage from this unprecedented crisis.
Global growth is projected at 6 percent in 2021, moderating to 4.4 percent in 2022. The projections for 2021 and 2022 are stronger than in the October 2020 WEO. The upward revision reflects additional fiscal support in a few large economies, the anticipated vaccine-powered recovery in the second half of 2021, and continued adaptation of economic activity to subdued mobility. High uncertainty surrounds this outlook, related to the path of the pandemic, the effectiveness of policy support to provide a bridge to vaccine-powered normalization, and the evolution of financial conditions.
Source: IMF
