Global ETF News Older than One Year
BlackRock faces being compelled to sell huge holdings in two ETFs
March 25, 2021--The iShares clean energy funds are braced for a major index rebalancing after amassing too much money in too few stocks
Two BlackRock ETFs face the prospect of having to sell as much stock of two energy companies as is typically traded in 40-50 days in order to comply with a dramatic index rebalancing.
The exchange traded funds might also need to offload more than 10 per cent of the free-float market capitalisation of some other companies if the shake-up proceeds as proposed next month, according to Socié té Générale, which revealed its views in a narrowly circulated report produced for clients.
"I bet every hedge fund is looking at that list to work out where they can buy these stocks so they can sell them short," said Peter Sleep, senior portfolio manager at 7 Investment Management.
Source: FT.com
Liquidity to solvency: transition cancelled or postponed?
March 25, 2021-Key takeaways
Since the start of the Covid-19 pandemic, a "bankruptcy gap" has emerged between measures of expected and realised bankruptcies globally.
The ample supply of credit to make up for short-term losses has been an important factor decoupling bankruptcies from the sharp reduction in firms' cash flows.
Firms' reliance on credit suggests that it may be too early to dismiss future solvency risk. Significant increases in leverage and weak earnings forecasts in some sectors suggest that for some firms, greater credit extension may have only postponed, rather than cancelled, their insolvency.
Source: BIS
Bitcoin mining boom adds to chip price inflation
March 22, 2021--Surging cryptocurrency demand worsens global shortages in semiconductors
As the price of bitcoin has surged, the hidden costs of the cryptocurrency boom are becoming clearer.
Awareness of the environmental consequences of using a vast array of computer equipment to produce bitcoins has been rising. Bill Gates has been among those to flag concerns, pointing out that so-called bitcoin mining uses more electricity per transaction than any other method known to mankind. Much less discussed, and yet perhaps more immediate, is mining’s impact on costs of chips-which go into everything from smartphones and TVs to cars.
Source: FT.com
ETFGI reports assets invested in Active ETFs reached a record of 318 billion US Dollars at the end of February 2021
March 17, 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$16.90 billion during February, bringing year-to-date net inflows to a record US$33.80 billion.
Assets invested in actively managed ETFs and ETPs finished the month up to 4.9%, going from US$303 billion at the end of January to a record US$318 billion, according to ETFGI's February 2021 Active ETF and ETP 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 Active ETFs reached a record of $318 Bn at the end of February.
Monthly net inflows of $16.90 Bn during February are the second highest behind the $18.56 Bn in November 2020.
Record YTD net inflows of $33.80 Bn are much higher than the prior record of US$12.47 Bn set in February 2020.
Source: ETFGI
ETFGI reports a record 1.05 trillion US dollars invested in Smart Beta ETFs and ETPs listed globally at the end of February 2021
March 17, 2021--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reports Smart Beta ETFs and ETPs listed globally gathered a record US$18.39 billion in net inflows during February bringing year-to-date net inflows to a record US$29.45 billion.
Smart Beta Equity ETF/ETP assets have increased by 5.9% from US$994 billion to US$1.05 trillion, with a 5-year CAGR of 22.9%, according to ETFGI's February 2021 ETF and ETP Smart Beta industry landscape insights report, a monthly report which is part of an annual paid-for research subscription service. (report looks at equity focused Smart Beta products, All dollar vales in USD unless otherwise noted.)
Highlights
Assets in Smart Beta ETFs and ETPs listed globally reach a record $1.05 Tn at the end of February.
Record monthly net inflows of $18.39 Bn in February passing the prior record of $16.76 Bn in November 2020.
YTD net inflows are a record $29.45 Bn, higher than the $15.60 Bn gathered YTD in 2020 and beating the prior record of $25.86 Bn set in February 2018.
Source: ETFGI
Oil markets face uncertain future after rebound from historic Covid-19 shock
March 17, 2021--Based on today's policy settings, global oil demand is set to rise every year through 2026, IEA report says, but stronger policies and behaviour changes could bring a peak in demand soon
World oil markets have rebounded from the massive demand shock triggered by Covid-19 but still face a high degree of uncertainty that is testing the industry as never before, according to a new IEA report.
The forecast for global oil demand has shifted lower, and demand could peak earlier than previously thought if a rising focus by governments on clean energy turns into stronger policies and behavioural changes induced by the pandemic become deeply rooted, according to Oil 2021, the IEA's latest annual medium-term market report. But in the report's base case, which reflects current policy settings, oil demand is set to rise to 104 million barrels a day (mb/d) by 2026, up 4% from 2019 levels.
Source: IEA
IEA Oil Market Report March 2021
March 17, 2021--Highlights
World oil demand is expected to rebound by 5.5 mb/d in 2021 after contracting by 8.7 mb/d in 2020. Consumption appears to be slightly higher than expected in 1Q21, supported by cold weather in northern Asia, Europe and the US. A stronger economy and vaccine deployment will support growth in 2H21, reducing the oil demand gap vs 2019 from 4.8 mb/d in 1Q21 to 1.4 mb/d in 4Q21.
Global oil supply fell 2 mb/d in February to 91.6 mb/d after a cold snap shut in US production and Saudi Arabia made an extra cut of 1 mb/d. OPEC+ agreed to extend most of its cuts through April, with Saudi keeping its extra cut in place. Non-OPEC+ will see output rise by 700 kb/d in 2021 after a 1.3 mb/d drop in 2020. US oil supply is set to decline by 180 kb/d, after a fall of 600 kb/d in 2020.
Source: IEA
ETFGI reports assets invested in ETFs and ETPs listed around the world reach a new record of US$8.30 trillion at the end of February 2021
March 16, 2021--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reported today that reports assets invested in ETFs and ETPs listed around the world reach a new record of US$8.30 trillion at the end of February. ETFs and ETPs listed globally gathered the highest ever monthly net inflows of US$139.46 billion during February, bringing year-to-date net inflows to a record level of US$222.54 billion.
Assets invested in the global ETFs/ETPs industry have increased by 3.0% from US$8.06 trillion at the end of January 2021, to US$8.30 trillion at the end of February, according to ETFGI's February 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 new record of $8.30 trillion at the end of February.
Net inflows of $139.46 Bn in February are the highest ever beating the prior record of $131.99 Bn set in Nov 2020
YTD net inflows are a record $222.54 Bn ahead of the $98.31 Bn in 2020 and beating the prior record of $130.95 set in February 2017
Source: ETFGI
Digital Wallet Users to Exceed 4.4 Billion by 2025, as Mobile Drives Digital Payments' Revolution
March 16, 2021--A new study from Juniper Research has found that the number of unique digital wallet users will exceed 4.4 billion globally in 2025; rising from 2.6 billion in 2020. It found that mobile wallets are leading this 70% growth, as mobile payments rapidly scale across geographical and vertical markets. The increasing alignment between in‑person and remote commerce channels is leading to greater use of mobile wallets than ever before, with online wallet use confined to high-value purchases or complex bill payments.
The research recommends that merchants should undertake complete reviews of their processes to ensure that they are offering a highly capable mobile app. This must be inclusive of a seamless checkout process, the correct mobile wallet integrations and high levels of security, or they will lose out to more mobile-adept merchants.
Source: juniperresearch.com
Rising Market Power-A Threat to the Recovery?
March 15, 2021--The crisis has hit small and medium enterprises especially hard, causing massive job losses and other economic scars. Among these-less noticeable, but also serious-is rising market power among dominant firms as they emerge even stronger while smaller rivals fall away.
We know from experience and IMF research that excessive market power in the hands of a few firms can be a drag on medium-term growth, stifling innovation and holding back investment. Such an outcome could undermine the recovery from the COVID-19 crisis, and it would block the rise of many emerging firms at a time when their dynamism is desperately needed.
Source: IMF
