Global ETF News Older than One Year
US Dollar Share of Global Foreign Exchange Reserves Drops to 25-Year Low
May 5, 2021--The share of US dollar reserves held by central banks fell to 59 percent-its lowest level in 25 years-during the fourth quarter of 2020, according to the IMF's Currency Composition of Official Foreign Exchange Reserves (COFER) survey. Some analysts say this partly reflects the declining role of the US dollar in the global economy, in the face of competition from other currencies used by central banks for international transactions. If the shifts in central bank reserves are large enough, they can affect currency and bond markets.
Our Chart of the Week looks at the recent data release from a longer-term perspective. It shows that the share of US dollar assets in central bank reserves dropped by 12 percentage points-from 71 to 59 percent-since the euro was launched in 1999 (top panel), although with notable fluctuations in between (blue line). Meanwhile, the share of the euro has fluctuated around 20 percent, while the share of other currencies including the Australian dollar, Canadian dollar, and Chinese renminbi climbed to 9 percent in the fourth quarter (green line).
Source: IMF
Palm oil/BlackRock: passive strategy is at odds with ESG stance
May 5, 2021--From oleo cookies to shaving cream, palm oil is an ingredient in all of our daily lives. Global production continues to grow, reaching about 72 million metric tons last year. Its ubiquity makes open and ethical investors like BlackRock hypocrisy...Plantation operators can destroy rainforests and deprive smallholders of land.
Environmental groups have leveled the latter claim with a subsidiary of Astra International, an Indonesian company whose third largest shareholder is a passive expert in the United States. This claim is a nuisance to BlackRock, who participated in a shareholder rebellion over aspects of the Procter & Gamble supply chain last year.
Source: californianewstimes.com
ETFGI reports assets invested in Smart Beta ETFs and ETPs listed globally reached a record 1.12 trillion US dollars at the end of Q1 2021
April 30, 2021--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reported today that equity-based Smart Beta ETFs and ETPs listed globally gathered net inflows of US$27.92 billion during March, bringing year-to-date net inflows to a record US$57.40 billion which is higher than the US$8.97 billion gathered at this point last year.
Year-to-date through the end of March 2021, Smart Beta Equity ETF/ETP assets have increased by 12.5% from US$1 trillion to US$1.12 trillion, with a 5-year CAGR of 22.8%, according to ETFGI's March 2021 ETFs and ETPs Smart Beta industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar vales in USD unless otherwise noted.)
Highlights
Assets invested in Smart Beta ETFs and ETPs listed globally reach a record $1.12 Tn a the end of Q1 2021.
Smart Beta ETFs and ETPs listed globally gathered net inflows of $27.92 billion during March
Year-to-date Q1 net inflows are a record $57.40 billion which is higher than the $8.97 billion gathered in Q1 2020.
Source: ETFGI
ETFGI reports assets invested in Active ETFs and ETPs reached a record 329 billion US Dollars at the end Q1 2021
April 30, 2021--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reported today that Active ETFs and ETPs gathered net inflows of
US$13.35 billion during March, bringing year-to-date net inflows to a record US$47.15 billion.
Assets invested in actively managed ETFs and ETPs finished the month up to 3.4%, from US$318 billion at the end of February to a record US$329 billion, according to ETFGI's March 2021 Active ETFs and ETPs 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.)
Assets invested in Active ETFs and ETPs reached a record $329 billion at the end of Q1 2021.
Active ETFs and ETPs gathered net inflows of $13.35 billion during March.
Year-to-date Q1 net inflows are a record $47.15 billion beating the prior record of $9.46 billion gathered Q1 2018.
Source: ETFGI
ETFGI reports Thematic ETFs and ETPs listed globally have gathered a record 45.19 billion US dollars in Q1 2021
April 30, 2021--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reported today that Thematic ETFs and ETPs listed globally gathered net inflows of US$2.61 billion during March, bringing year-to-date net inflows to record US$45.19 billion which is much higher than the prior record of US$25.21 billion gathered at this point last year.
Total assets invested in Thematic ETFs and ETPs decreased by 3.1% from US$393.67 billion at the end of February 2021 to US$381.59 billion, according to ETFGI's March 2021 Global ETFs and ETPs Thematic 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 of $381.59 Bn invested in Thematic ETFs and ETPs listed globally at the end of Q1 are the third highest on record.
During March Thematic ETFs and ETPs gathered net inflows of $2.61 Bn.
YTD net inflows of $45.19 Bn are a record, passing the prior record of $25.21 Bn gathered in Q1 2020.
Source: SEC.gov
A Post-Pandemic Assessment of the Sustainable Development Goals
April 29, 2021--Summary:
The COVID-19 pandemic hit countries'development agendas hard. The ensuing recession has pushed millions into extreme poverty and has shrunk government resources available for spending on achieving the United Nations Sustainable Development Goals (SDGs).
This Staff Discussion Note assesses the current state of play on funding SDGs in five key development areas: education, health, roads, electricity, and water and sanitation, using a newly developed dynamic macroeconomic framework.
Source: IMF
Understanding the Rise in Long-Term Rates
April 22, 2021--The rise in long-term US interest rates has become a focus of global macro-financial concerns. The nominal yield on the benchmark 10-year Treasury has increased about 70 basis points since the beginning of the year. This reflects in part an improving US economic outlook amid strong fiscal support and the accelerating recovery from the COVID-19 crisis.
So an increase would be expected. But other factors like investors' concerns about the fiscal position and uncertainty about the economic and policy outlook may also be playing a role and help explain the rapid increase early in the year.
Source: imf.org
Quant winter' thaw ends long spell of drab returns for funds
April 22, 2021--AQR among the big names on the rebound as new phase of pandemic shakes up asset markets
Source: ft.com
Revealed: Leading Asset Managers Doubling Down on Coal Despite Net-Zero Pledges
April 21, 2021--Reclaim Finance has today released the first edition of a scorecard on leading asset managers' climate commitments, focusing on their approach to the coal sector (1). Produced with four partner NGOs from across Europe and North America,* the report compares 29 asset managers, with a focus on the European market (2). The authors reveal that despite 16 asset managers holding long-term climate commitments, nearly all are failing to take the first step to making them a reality: exiting coal.
Less than half of the asset managers assessed have a public policy to limit coal investments - titans like Vanguard, Schroders and PIMCO are notable absences. Where policies do exist, they allow for so many exceptions (3) that only 25% of all the assets managed within the sample are covered by a coal exclusion criterion.
The analysis unveils that while €23 trillion of assets under management are covered by long term climate commitments (like net zero pledges), only €3.4 trillion exclude companies with coal expansion plans. This comes despite a series of highly-publicized net-zero pledges from leading asset managers recently, with 13 of those surveyed having joined the Net Zero Asset Managers' Initiative, among them BlackRock and Allianz GI last month. Despite that, six signatories to the NZAMi are yet to adopt any coal exclusion policy whatsoever.
Source: reclaimfinance.org
Commodity Prices to Stabilize after Early 2021 Gains, Supported by Global Economic Recovery
April 20, 2021--Path of commodity prices depends on pace of recovery and containment of COVID-19
Commodity prices continued their recovery in the first quarter of 2021 and are expected to remain close to current levels throughout the year, lifted by the global economic rebound and improved growth prospects, according to the World Bank’s semi-annual Commodity Markets Outlook.
However, the outlook is heavily dependent on progress in containing the COVID-19 pandemic as well as policy support measures in advanced economies and production decisions in major commodity producers.
Energy prices are expected to average more than one-third higher this year than in 2020, with oil averaging $56 a barrel. Metal prices are expected to climb 30 percent; and agricultural prices are forecast to rise almost 14 percent. Almost all commodity prices are now above pre-pandemic levels, driven by the upsurge in economic activity, as well as some specific supply factors, particularly for oil, copper, and some food commodities.
Source: World Bank
