Global ETF News Older than One Year
ESG bond funds held back by fear of criticising US, research suggests
September 2, 2020--Fund managers' unwillingness to criticise western governments, particularly that of the US, is holding back the development of "sustainable" government bond funds, research suggests.
While corporate bonds can be scored using a similar ESG scoring system to that used for equities, "there are still question marks over how to best evaluate government debt, where there is a fine line between making an objective ESG assessment and straying into political territory", said Kenneth Lamont, research analyst for passive strategies at Morningstar.
Source: technocodex.com
BetaShares-Market Trends: September 2020
September 2. 2020--Key global trends-equity rally continues
Global equities continued their V-shaped recovery in August, while the $US continued its decline. In a counter-trend move, perhaps reflecting growing investor confidence in an economic recovery, there was a small uptick in global bond yields and an easing back in gold prices.
As seen in the chart set below, global bond yields and the $US remain in a downtrend, and gold prices in an uptrend*. On a total return basis, global equities have surpassed their previous peak at the end of last year, to be at the top end of a very wide and volatile range since early 2018.
Source: BetaShares
FIA addresses climate risk in derivatives market
September 1, 2020- FIA today published a new policy paper in consultation with its members across the cleared derivatives industry on climate-related risks for financial markets and the global economy.
The paper, "How derivatives markets are helping the world fight climate change," focuses on how the industry is already addressing this issue, and highlights potential partnerships with the public sector to help build a more sustainable economy in the long term.
Source: finextra.com
Financial turmoil gives investors good opportunity to challenge advisers' fees
September 1, 2020--Top wealth managers have been quick to declare that the Covid-19 pandemic has highlighted their strengths.
Source: ft.com
Carbon accounting should be a basic requirement for banks
August 30, 2020--Financial institutions and asset managers are impeding progress on climate action for lack of a simple rule.
Source: FT.com
Emerging market central banks and quantitative easing: high-risk advice
August 26, 2020--Central banks in emerging markets with weak currencies should not resort to unorthodox monetary tools such as quantitative easing as a response to the crisis triggered by COVID-19. Preferable alternatives include shifting public spending away from less pressing needs, moderately increasing public debt and falling back on official development assistance.
The idea that 'credible' emerging-market central banks (EMCBs) could embrace quantitative easing (QE) to tackle the consequences of the COVID-19 pandemic, as suggested by Benigno et al (2020), could cause more harm than good. Let us point out the main weaknesses and risks.
First: the different roles of core and peripheral currencies
The suggested approach largely disregards the different roles of 'core' and 'peripheral' currencies in international markets. While 'core' currencies, including the US dollar, the euro and, to lesser degree, the Japanese yen, British pound, Swiss franc and Chinese renminbi, play the role of international (global) money, in all its three functions, and are demanded by both domestic and foreign economic agents, 'peripheral' currencies are subject to only domestic demand.
Source: bruegel.org
Covid Crisis Drives Historic Drop in Global Trade
August 25, 2020--Trade flows collapsed in the spring. Despite recent signs of a rebound, a reshaping of world trade could follow the pandemic.
Global trade flows collapsed in the spring, marking the largest fall in two decades, as coronavirus lockdowns disrupted air and sea transport and dealt a blow to the demand for many consumer and investment goods.
In more recent weeks, signs have emerged of a rebound in the movement of goods across national borders. But the enormous economic and social disruptions caused by the pandemic are expected to reshape global trade in the longer term.
Source: wsj.com
Gold Fever in 2020 Means Exchange-Traded Funds
August 23, 2020--In the 19th century California gold rush, the surest way to a fortune, according to Mark Twain, was to be in the "pick and shovel business."
If 2020 gold fever has an equivalent, it's the ETF business.
Exchange-traded funds backed by physical gold and silver accumulated more than $50 billion of bullion this year. ETFs now hold more gold than every central bank with the exception of the Federal Reserve.
Source: bnnbloomberg.ca
ETFGI reports assets invested in ESG ETFs and ETPs listed globally broke through the 100 billion US dollars milestone at end of July 2020
August 21, 2020-- ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that Environmental, Social, and Governance (ESG) ETFs and ETPs listed globally broke through the US$100 billion milestone at end of July 2020.
The products gathered net inflows of US$6.76 billion during July, bringing year-to-date net inflows to a record US$38.78 billion which is significantly higher than the US$12.37 billion gathered at this point last year and the US$26.71 Billion gathered in all of 2019.
Total assets invested in ESG ETFs and ETPs increased by 14.7% from US$88 billion at the end of June 2020 to US$101 billion, according to ETFGI's July 2020 ETF and ETP ESG industry landscape insights report, a monthly report which is part of a paid-for annual research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Assets invested in ESG ETFs and ETPs listed globally break through the $100 billion milestone to reach a new record of $101 billion.
YTD through end of July, ETF/ETP listed globally gathered a record $38.78 Bn in net inflows surpassing the $26.71 billion gathered in 2019.
Source: etfgi.com
Sustainalytics tells Yahoo! Finance to pull 'highly inaccurate' ranking of responsible companies
August 20, 2020--League table, including Wells Fargo and Dakota Pipeline owner, wrongly claimed firms were highly rated by Morningstar-owned ESG research house
Yahoo! Finance has removed a list of the 30 "most socially responsible companies" at the request of ESG data provider Sustainalytics, which described the US web provider's ranking as a "highly inaccurate" reflection of its ratings.
The now deleted list included unlikely candidates...
Source: responsible-investor.com
