Global ETF News Older than One Year
ETFGI reports assets invested in ETFs and ETPs listed globally reached of US$8.95 trillion at the end of April 2021
May 12, 2021-- ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reported today that ETFs and ETPs listed globally gathered net inflows of US$105.37 billion during April, bringing year-to-date net inflows to a record US$465.41 billion which is higher than the prior record US$184.04 billion which was gathered at this point last year.
Assets invested in the global ETFs and ETPs industry have increased by 4.6% from US$8.56 trillion at the end of March 2021, to US$8.96 trillion at the end of April, according to ETFGI's April 2021 Global 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.)
Highlights
A record $8.95 trillion invested in ETFs and ETPs listed globally at the end of April
Net inflows of $105.37 billion gathered in April
Record YTD net inflows of $465.41 Bn beating the prior record $184.04 billion gathered YTD in 2020
23rd month of consecutive net inflows
Source: ETFGI
What's the 'bullwhip effect' and how can we avoid crises like the global chip shortage?
May 12, 2021--An ongoing shortage of semiconductors has had profound impacts.
The current scarcity has been described as a result of the 'bullwhip effect.'
Experts say there are ways to mitigate the phenomenon, which can snarl global trade.
It started with diapers.
Babies were doing their part by steadily blazing through pairs of Pampers. But the maker of the disposable products realized in the 1990s it was enduring fluctuations in demand that hit harder the further one moved up the supply chain, from tiny consumer to manufacturer. The problem was dubbed the "bullwhip effect."
We're currently receiving a crash course in the bullwhip effect, trade dynamics and supply-chain risk thanks to a global semiconductor shortage.
In this case it's not Pampers that are potentially in short supply, but the stunningly wide array of things we now rely on that require chips.
The global auto industry is expected to make as many as five million fewer cars this year than anticipated due to the scarcity, and buying a big SUV could cost at least 20% more than it would have last year. The shortage is expected to take as much as a $4 billion bite out of Apple's quarterly sales due to supply constraints on iPads and Macs, and Samsung cited a "serious imbalance" in global supply and demand for chips while warning it might delay the launch of a new phone.
Source: weforum.org
Renewable Energy Growth Rate Up 45% Worldwide In 2020; IEA Sees 'New Normal'
May 11, 2021--Despite the pandemic, the growth rate in the world's, renewable energy capacity jumped 45% in 2020, part of "an unprecedented boom" in wind and solar energy, according to a new report from the International Energy Agency. It's the largest annual rate of increase since 1999.
"An exceptional 90% rise in global wind capacity additions led the expansion," the report states. It also cites a 23% expansion in new solar power installations.
In 2020, renewable power was "the only energy source for which demand increased ... while consumption of all other fuels declined," says the IEA, whose mission is to make the world's energy supply more reliable, affordable and sustainable.
The IEA predicts large capacity gains in renewable energy will become the "new normal" in 2021 and 2022, with increases similar to 2020's record total.
Source: npr.org
This is how climate change is impacting the ocean-and what we can do about it
May 11, 2021--The ocean is a massive carbon sink, protecting us from the worst of climate change.
But rising air temperatures are melting glaciers, while warming seas are bleaching coral.
Action like coral reef restoration is already underway-and research has found some corals to be more resistant to higher temperatures.
And there are now calls to designate Marine Protected Areas for 30% of the ocean by 2030.
The ocean is inextricably linked to our climate. Rising air temperatures due to global warming are melting the polar ice caps and dissolving glaciers, leading to rising sea levels.
But the ocean is also playing a crucial role in protecting us from the worst effects of climate change. Scientists say the seas have absorbed 90% of all the warming that has taken place in the past 50 years.
Source: weforum.org
The US takes active ETFs to the next level, while Europe remains cautious
May 9, 2021--According to industry statistics, actively managed exchange--traded funds have been so successful in building scale that investors' cash can be sacrificed at the expense of both traditional investment trusts and passive ETFs. It is set to gain a larger share.
Unlike investment trusts, exchange-listed investment vehicles still account for only 4% of the total ETF market, according to data provider TrackInsight. However, the latest figures show that this share is growing rapidly. Active ETF assets under management increased 13.7% in the first quarter to reach $ 318 billion. This is compared to being under the control of $ 8.1 trillion, a 7.3% growth rate, in the broader ETF market.
Source: FT.com
German and US regulators tighten focus on booming crypto market
May 7, 2021--Soaring digital asset prices prompt firms to offer products ranging from loans to futures.
Source: FT.com
Blockchain in capital markets: Here's what we've learned after 5 years of experimentation
May 6, 2021--Many financial institutions and tech firms have invested heavily in exploring distributed ledger technology and its capabilities, moving it from the margins to the mainstream.
There are inefficiencies, challenges and potential risks to what underlies global capital markets and the key question is whether DLT is the appropriate tech to address them.
Capital market leaders must take several steps, including better understanding DLT and its potential roles, while uniting behind common standards for contracts and processes.
In the five years since the World Economic Forum published "The future of financial infrastructure", the world of blockchain has changed dramatically. Bitcoin- the oldest and most widely known cryptocurrency, and the first major blockchain application- saw its value peak in late 2017, before falling and then rising to new records over the past several months. Most of the world's major central banks have announced research programmes on Central Bank Digital Currencies (CBDC), and a few smaller countries have launched live CBDCs. In many ways, it appears that distributed ledger technology (DLT), of which blockchain is the most common architecture, has moved from the margins to mainstream adoption.
In the capital markets- stock, bond, derivatives and related markets - DLT has been regarded as, depending on whom you ask, one of:
disruptive threat to existing players;
a solution to inefficiencies arising from legacy technologies and operations;
a solution in search of a problem.
Source: weforum.org
Digital Assets, Distributed Ledger Technology, and the Future of Capital Markets
May 6, 2021--This report highlights the results of a series of virtual global workshops and expert interviews held with financial services and technology experts in 2020. It looks at the urgent need for digital transformation in capital markets, with a view to providing strategic insights that will improve client service delivery, achieve greater efficiency and enable new services.
As well as exploring the use of distributed ledger technology (DLT)- now going live in many institutions– and its role in future capital markets, it examines the challenges involved in attempting industry-wide transformation and presents a framework for different approaches to DLT solutions. Finally, it presents a use case analysis of seven asset classes/product lines, including equity markets, securitized products, derivatives and securities financing.
Source: WEF (World Economic Forum)
How Much Energy Does Bitcoin Actually Consume?
May 5, 2021--How much energy does an industry deserve to consume?
Right now, organizations around the world are facing pressure to limit the consumption of non-renewable energy sources and the emission of carbon into the atmosphere. But figuring out how much consumption is too much is a complex question that's intertwined with debates around our priorities as a society.
The calculation of which goods and services are "worth" spending these resources on, after all, is really a question of values. As cryptocurrencies, and Bitcoin in particular, have grown in prominence, energy use has become the latest flashpoint in the larger conversation about what, and who, digital currencies are really good for.
Source: hbr.org
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
