Tag Archives: exchange-traded-products

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Insurance Co PMs Getting The Memo: ETF Products Make More Sense

Insurance Co PMs are increasingly getting  “the memo” : Exchange-Traded Funds (ETFs) Make Sense..

(Pensions & Investments) Exchange-traded funds have permeated almost every corner of the financial markets, but insurance companies have primarily kept their distance. That may be changing.

Though several U.S. insurers have navigated the $2.4 trillion ETF marketplace through variable-annuity products, integration into general accounts has been more recent, many observers say.

According to S&P Dow Jones Indices, insurers have only scratched the surface in their use of ETFs. Analyzing National Association of Insurance Commissioners data through 2015, S&P found that property and casualty, life and health insurers only reported an aggregate $15 billion invested in ETFs for general accounts, but the growth of ETF assets has outpaced overall growth of general account assets, which approached $6 trillion at the end of 2015, according to SNL Financial.

Since 2006, the amount of ETFs held by Insurance Co PMs has increased 146% and grown 14.5% per year, whereas total assets in general accounts have increased 26% in the same period, according to S&P. And, as with many measures of institutional investment in ETFs, year-end holdings are not necessarily indicative of ongoing ETF usage in more temporary functions such as transitions and liquidity management.

S&P projects ETF asset values for insurers to double in five years, in line with Greenwich Associates’ annual institutional ETF survey which indicated 71% of insurers surveyed in 2015 expected to increase their allocation to ETFs.

“It’s clear that the largest ETF providers — BlackRock (BLK), State Street and Vanguard — have been working more closely with the insurance companies,” said Todd Rosenbluth, director of ETF and mutual fund research at S&P Global Market Intelligence, New York. “But it’s also a size aspect. Smaller insurers with fewer resources have been more willing to use index ETFs compared to larger insurers paying for active management and investment due diligence.”

“Compared to financial advisers and pension managers, insurance general account managers have more assets and greater risk aversion,” added Mr. Rosenbluth. “The ETF education model is different.”

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More recently those “educational” conversations are including the growing asset base and efficacy of fixed-income ETFs, said Steve Mickle, a director of institutional sales and trading with WallachBeth Capital LLC in San Francisco. He said that insurers have become the agency brokerage firm’s fastest growing clientele. “They see the size and liquidity of some of the earliest and most foundational fixed-income ETFs as utility products, ones that work for parking cash or interim benchmarking,” said Mr. Mickle.

According to WallachBeth, 132 fixed-income ETFs have been assessed by the National Association of Insurance Commissioners for risk-based capital treatment that could potentially be more favorable than common stock (as ETFs are traditionally reported).

“The NAIC designation is an added feature,” said Bill Best, managing director at VanEck in New York, “but some of the largest insurers are still working through the products and mechanics of ETFs.”

Josh Penzner, managing director at BlackRock Inc. (BLK), has observed insurers testing the waters of fixed-income ETFs, particularly to manage cash liquidity and investment exposures as a placeholder before purchasing bonds that have been “and will continue to be” the core of insurance general account portfolios.

To continue reading, click here

MarketsMuse blog post title Insurance Co PMs are increasingly getting  “the memo” : Exchange-Traded Funds (ETFs) Make Sense..

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ETF and ETP: Now a $3 Trillion Industry

Back in the day, when “trillion dollar” was a phrase not even contemplated by film writers, and barely envisioned by financial industry wonks (other than in context of US government deficit), and when even being a billionaire was limited to a universe of less than two dozen people, (e.g. Warren Buffett and Bill Gates 25 years ago), few would have predicted that a category of financial vehicle known as exchanged-traded products (ETP), with a sub-sect comprised of exchanged-traded fund (ETF) would become mainstream. Well, ETPs and ETFs are so mainstream now, assets invested in these products have surpassed $3trillion in each of the past two years.

(Traders Magazine) Assets invested in Exchange traded funds and ETPs listed globally have broken through the $3 trillion milestone for the second time at the end of Q1. At the end of May 2015 the assets in ETFs/ETPs listed globally first exceeded the $3 trillion milestone.

During March 2016, ETFs/ETPs listed globally gathered $45.30 in net new assets, according to research from ETFGI, a London-based market research firm. This marks the 26th consecutive month of net inflows. The Global ETF/ETP industry had 6,240 ETFs/ETPs, with 12,042 listings, assets of $3.07 trillion, from 277 providers listed on 64 exchanges in 51 countries, according to preliminary data from ETFGI’s March 2016 global ETF and ETP industry insights report.

U.S. equities rebounded in March ending the month up 7 percent. Emerging markets and Developed ex US markets also had a strong March ending up 12.5 percent and 7.2 percent respectively. Based on comments from the Fed there is a growing belief that interest rates will be held lower for longer than previously anticipated. The European Central Bank cut rates and announced additional stimulus will begin in April, accelerating the rate of bond purchases from 60 to 80 billion euros per month,” according to Deborah Fuhr, managing partner at ETFGI.

Some ETF numbers, via ETFGI:

In March 2016, ETFs/ETPs saw net inflows of $45.30 Bn. Equity ETFs/ETPs gathered the largest net inflows with $26.30 Bn, followed by fixed income ETFs/ETPs with $14.80 Bn, and commodity  ETFs/ETPs with $2.42 Bn.

In March 2016, 71 new ETFs/ETPs were launched by 27 providers and 30 ETFs/ETPs were closed.

iShares gathered the largest net ETF/ETP inflows in March with US$20.97 Bn, followed by Vanguard with US$9.74 Bn and SPDR ETFs with US$6.25 Bn in net inflows.

YTD, iShares gathered the largest net ETF/ETP inflows YTD with US$24.54 Bn, followed by Vanguard with US$17.82 Bn and SPDR ETFs with US$8.78 Bn net inflows.

S&P Dow Jones has the largest amount of ETF/ETP assets tracking its benchmarks with 27.5 percent market share; MSCI is second with 14.6% market share, followed by FTSERussell with 12.4 percent market share.

Keep reading Traders Magazine story via this link

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ETFs To Watch This Week Include ETFs Involved In Oil and The Yen

MarketsMuse blog update highlights the must watch ETFs for the first week of June. The ETFs range from health care, to oil, the Japanese Yen. This update is courtesy of the Benzinga’s author, David Fabian, and his article, “Healthcare, Yen And Oil ETFs To Watch This Week“, with an excerpt from the article below.

The summer months are often characterized by lower volume and heightened volatility, which seems to be a trend that has already established itself this year.

Several important events this week have the potential to impact the market including: personal spending, motor vehicle sales and non-farm payroll data.

Here are the key ETFs to watch for the week of June 1:

Health Care Select Sector SPDR XLV 0.25%

Healthcare stocks have continued to show tremendous strength this year and XLV has been one of the leading sector components of the S&P 500 Index. This ETF is made up of 57 large-cap stocks in the pharmaceutical, biotechnology and medical services fields. Top holdings include well-known companies such as Johnson & Johnson JNJ 1% and Pfizer Inc PFE 0.9%.

CurrencyShares Japanese Yen Trust FXY 0.1%

After appearing to stabilize through the first four months of the year, the Japanese yen currency has once again plunged markedly lower versus the U.S. dollar in May. FXY tracks the daily price movement of the yen versus the U.S. dollar and is down 3.64 percent so far this year.

United States Oil Fund LP (ETF) USO 3.83%

Crude oil prices jumped 4 percent on Friday and managed to recoup the majority of the slide this commodity experienced in May. USO tracks the daily price movement of West Texas Intermediate Light Sweet Crude Oil futures and is the most heavily traded oil ETF.

To continue reading about why oil, the yen, and health care are must watch ETF categories according Benzinga reporter, David Fabian, click here.

 

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New ETF Combines Dividends And Renewable Energy Using A YieldCo

MarketsMuse blog update profiles a new ETF, Global X YieldCo Index ETF (NasdaqGM: YLCO), which launched, Thursday, May 28, 2015. The ETF, YLCO, comes from a new kind of asset called YieldCos that aim to provide a steadier income to investors through assets from the renewable energy industry. YLCO tracks the Indxx Global YieldCo Index, which is home to 20 stocks that are a part of nearly 65.7% of the ETF, YLCO ‘s weight. Some of these stocks include: 

  • TerraForm Power (NasdaqGS: TERP)
  • Brookfield Renewable Energy Partners (NYSE: BEP)
  • SuneEdison (NasdaqGS: SUNE)
  • First Solar (NasdaqGS: FSLR)

This MarketsMuse blog update is courtesy of ETFTrends’ Todd Shriber and his article, “Dividends and Renewable Energy? There’s an ETF for That“, with an excerpt below. 

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Renewable energy stocks and dividends are not often thought of as synonymous, but an emerging asset class is changing that.

YieldCos are income-generating assets from the renewable energy space that look to deliver steady income to investors. Spun off as fully developed assets from parent companies, such as solar firms and wind farm operators, yieldcos are comparable to master limited partnerships (MLPs), an asset class that has been widely embraced by income investors in recent years.

A new ETF, the Global X YieldCo Index ETF (NasdaqGM: YLCO) helps investors access the burgeoning yieldcos asset class.

“YieldCos are formed when energy companies spin off fully developed assets, such as wind and solar farms, with long term contracts and an objective of returning cash flows to shareholders. Market capitalization for the YieldCo industry currently stands at $39 billion. With 11 announced IPOs in the pipeline, it has become an increasingly popular vehicle for energy firms,” according to a statement issued by Global X.

 To continue reading about this new ETF, YLCO, and the things it could do, click here.
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These ETFs Could Make You The Next Warren Buffett

MarketsMuse blog update profiles the best ETFs to invest in according to Zacks Equity Research to become the next Warren Buffett. The ETFs range from technology, to financial, to consumer. This MarketsMuse update is courtesy of Zacks Equity Research article, “Follow Warren Buffett with These Stocks and ETFs“, with an excerpt below. 

Everybody dreams of becoming rich and famous like Warren Buffett, Carl Icahn, Daniel Loeb and David Tepper. After all, these Wall Street gurus have successfully put their money in the right place and continued to reap huge returns.

Buffett’s Berkshire Hathaway has enjoyed an average growth rate of about 20% annually. Furthermore, Berkshire Hathaway has added more than 104% over the last five years that is better than the gain of over 94% from the broader market ETF SPDR S&P 500 ETF (SPY) during the same timeframe.

Thanks to this achievement, following billionaires’ investment strategies is now a fad these days. While investing in Berkshire is always a good way of following Buffett, who is commonly known as The Oracle of Omaha, there are numerous other ways to reproduce this stock market veteran’s investment theme and jazz up one’s portfolio.

Normally, Buffett takes interest in companies trading below what he believes is their intrinsic value.He aims long-term outperformance and apparently ignores short-term downturns. We have analyzed a few stocks that remain Buffett’s favorites and highlight the related ETFs for investors who want to follow this investment veteran.

The ETFs that Zacks Equity Research recommend to invest in to follow in Warren Buffett’s footsteps are as follows:

  • iShares U.S. Financial Services ETF (IYG)
  • SPDR Consumer Staples Select Sector ETF(XLP)
  • Market Vectors Retail ETF(RTH)
  • Consumer Staples ETF (VDC)
  • NASDAQ Technology Dividend Index Fund (TDIV)
  • Direxion iBillionaire Index ETF (IBLN)
  • Validea Market Legends ETF (VALX)
  •  Global X Guru Holdings Index ETF (GURU)

To read more about why Zacks Equity Research named these ETFs the best to be like Warren Buffett, click here.

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Coal ETF’s Burns Dim

While many are looking to move away from coal as a power source, such as China, the coal ETF, Market Vectors-Coal ETF (NYSEArca: KOLand recently launched coal ETF, GreenHaven Coal Fund (NYSEArca:TONS), have to continued to demonstrate that trend as their fires dim down to a mere dust.  This MarketsMuse update profiles the dim outlook two above listed coal ETFs are facing as countries explore other sources of power. This update is courtesy of ETFTrends’ Tom Lydon and his article, “Coal ETF Outlook Growing Dim” with an excerpt. 

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Some bargain hunters may be looking at the downtrodden coal industry and related exchange traded funds as the market remains near historic lows. However, coal remains depressed for a reason.

Over the past three months, the Market Vectors-Coal ETF (NYSEArca: KOL), which tracks the coal industry, has declined 6.9%. Additionally, the recently launched GreenHaven Coal Fund (NYSEArca:TONS), which is designed to offer investors with exposure to daily changes in the price of coal futures contracts, has decreased 3.6%.

Some may be tempted to catch the falling knife as the economy still depends on coal to meet growing electricity needs. However, the other fundamental factors may weigh on the space.

To continue reading about these coal ETFs bleak outlook, click here

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Billion Dollar ETF Stocks Up On Health Care

MarketsMuse blog update profiles the rebalancing that the Direxion iBillionaire Index ETF has been doing and this time investing much of its energy in health care. This MarketsMuse update is courtesy of Benzinga’s article, “Billionaire-Tracking ETF Just Bulked Up On Health Car“. An excerpt of the article highlighting the rebalance is below.

Investing in some of the world’s top hedge funds may not be feasible for the majority of investors, yet that doesn’t mean they can’t participate in many of their best ideas.

The Direxion iBillionaire Index ETF (IBLN 0.15%) is one example of an ETF that seeks to harvest the top holdings from a select group of billionaire investors. These famed strategists are required to report their largest positions on SEC Form 13F filings — publicly-available information from which an index can be constructed.

IBLN selects 30 large-cap stocks from a pool of up to 10 billionaires and equal weights them across its portfolio. According to the fund company’s website, “IBLN is designed to help long term-investors pursue a better portfolio outcome by seeking excess returns relative to the S&P 500 Index.”

The latest IBLN rebalancing led to some interesting changes across the spectrum of holdings that reduced exposure to technology companies and bulked up on health care names.

It subsequently added the following new positions:

  • American Airlines Group Inc AAL 0.33% – Industrials
  • Applied Materials, Inc. AMAT 0.05% – Technology
  • DirecTV DTV 0.63% – Consumer Discretionary
  • Endo International ENDP 0.09% – Health Care
  • Humana Inc HUM 0.13% – Health Care
  • McKesson Corporation MCK 0.49% – Health Care

To continue reading about Direxion iBillionaire Index ETF‘s rebalance shifting to health care, click here.

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Investors Brace For Bumpy Ride As Airline ETFs Hit A Rough Patch

After a hot take off for the ETF, JETS, MarketsMuse blog update profiles the plunge airline stocks and ETFs have seen in the recent weeks ahead the summer season, which will then hopefully bring another boost to the stocks and ETFs. This blog update is courtesy of Zacks Research article, “Air Stocks and ETF Plunge: Warming Up for Summer?”, with an excerpt below. 

The airline stocks that were hot and soaring over the past few years suddenly lost their altitude in Wednesday trading session as the shares of major carriers nosedived as much as 10% on concerns that growth might outpace travel demand. This could result in lower fares and thinner profit margins.

This is because cheap fuel is encouraging carriers to increase the number of seats at the current fares, breaking the competitive discipline that helped the industry to earn record profits in the past.

Bright Summer Outlook

Despite the brutal plunge, airline stocks and the ETF are anticipating sunnier days in summer. This is especially true given the optimistic view from the Washington-based trade group Airlines for America.

The group expects airlines to see the busiest summer ever this year buoyed by an improving economy, accelerating job market and rising consumer confidence. The demand for U.S. air travel would hit a fresh high as 222 million travelers (or 2.4 million a day) are expected to fly from June 1 through August 31, up 4.5% year over year and much higher than a record of 217.6 million travelers seen in 2007.

To continue reading about the airline stocks and ETFs that are bracing the bumpy ride, click here

 

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As Predicted, The Sun Has Set On The Solar ETF’s Rise

After months of warnings from market watchers, the Chinese solar stock, Hanergy Thin Film Power Group, started to set on a pretty powerful year so far. MarketsMuse blog update profiles the effects this Chinese stock has had on the Guggenheim ETF, which MarketsMuse has profiled before. This MarketsMuse update is courtesy of MarketWatch’s Victor Reklaitis and his article, “China solar stock implosion a reminder to look under ETF’s hood

Many market watchers have warned this year about a highflying Chinese solar stock—Hanergy Thin Film Power Group—and its leading role in popular ways to bet on solar stocks like one Guggenheim ETF.

On Wednesday, Hanergy’s 0566, -46.95% aerial routine ended with a crash, as one Wall Street Journal headline put it. And the Hong Kong-listed stock’s dive after a meteoric rise was helping to take down the Guggenheim Solar ETF TAN, -7.79%

So what’s the takeaway?

“Investors should take care to look under the hood of the ETFs in order to understand what exposure they are possibly buying into,” said Markit analyst Relte Schutte in an email to MarketWatch on Tuesday about the solar ETF and Hanergy.

Schutte had noted in a May 6 commentary that about half of the Guggenheim ETF’s year-to-date jump of 40% was due to Hanergy’s surge of 157%. The ETF was about 12% exposed to Hanergy as of Tuesday, before its big plunge, making it the largest stock in that fund. Hanergy also has been the biggest holding in two rival ETFs, the Market Vectors Solar Energy ETF KWT, -6.88% and iShares Global Clean Energy ETF ICLN, -2.57%

To continue reading about the implications the crash the Hanergy Stock has had on the solar ETFs, click here.

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One Gold ETF Looks To Be Worthy Of A First Place Finish

After a few rough years for gold as investors shifted other asset equities, things are starting to look up, especially for one ETF in particular. MarketsMuse blog update profiles Gartman Gold/Yen ETF (GYEN)  as one of the best ETFs to invest in for gold options. This update is courtesy of Zacks’ Equity Research article, “Is This the Safest Gold ETF for 2015?“, with an excerpt below explaining why GYEN could be the best gold ETF. 

Gold had one of its worst nightmares in the last two years as investors shifted to more risky asset classes like equities. This is especially true in the backdrop of the strengthening dollar and continued bullishness in the stock market, two conditions that spoilt the safe haven appeal of the yellow metal. The bleeding stretch led the metal to languish below the $1,200 an ounce level – almost near its lowest level since April 2010.

The start to 2015 was no different from the last two years as rising rate worries intensified at the beginning of the year. But the metal started to buck the trend since April. Weakness in the greenback in the wake of soft U.S. GDP in Q1 was the major driving force behind this uptrend.

What Are the Best Gold ETF Bets if Dollar Rises?

In most cases, gold investments are made via the U.S. dollar (which is presently at a roller coaster ride). So, it would be wise to look at the gold ETFs which are not linked to the greenback. Two such lucrative options are Gartman Gold/Yen ETF (GYEN) and Gartman Gold/Euro ETF (GEUR). While GYEN provides positive returns by using the yen for investing its assets in the gold market, GEUR does so with the euro.

Is GYEN the Best Option? 

After a nice show in 2013, the Japanese economy has been struggling since the second half of 2014. Japan’s growth in Q1 of 2015 has also been restrained by soft consumption. This ensures that the life of Japanese stimulus will be long as the economy is yet to stand on its own feet.

To continue reading about gold ETF option, GYEN, click here

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Nuveen Investments Has Returned To ETFs…Quietly

MarketsMuse blog update profiles asset manager Nuveen Investments quietly returning to the world of ETFs.  This MarketsMuse blog update is courtesy of ETFTrends Tom Lydon’s article, “Nuveen Tiptoes Back Into ETFs“, with an excerpt below. 

After departing the exchange traded funds business in 2002, Nuveen Investments has returned in quiet fashion. The Chicago-based firm said Monday shareholders of the Nuveen Long/Short Commodity Total Return Fund (NYSEArca: CTF), have approved the plan to convert the fund into open-ended exchange-traded fund (ETF). The conversion plan is also contingent on customary regulatory approvals, according to a statement. “The Annual Meeting of Shareholders for the Nuveen Diversified Commodity Fund (NYSE: CFD) has been adjourned to June 15, 2015, to allow additional solicitation of votes on the proposed plan to convert the fund into an ETF,” according to Nuveen. Nuveen said in December it was planning to convert CTF and CFD into ETFs. CFD invests in an array of commodity futures and forward contracts. As of the end of November, the mutual fund allocated a combined 26.5% of its weight to oil and gold,according to issuer data.

The fund’s annual expenses total 1.75%. To continue reading about Nuveen’s quiet return, click here.

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New Normal: Big Institutions Looking To ETFs Over Bonds

MarketsMuse ETF and Fixed Income departments merge to profile trend on part of fixed-income focused hedge funds and institutional fund managers to use ETFs to express their bets on corporate bonds. This MarketsMuse blog update is courtesy of Bloomberg’s Lisa Abramowicz and her article, “A $200 Million Hedge-Fund Trade in Your Bond ETF Is Normal Now”. An excerpt from this article is below. 

Don’t be surprised if you see a huge chunk of cash simply evaporate one day from your exchange-traded bond fund. There’s a good chance it’s just a hedge fund cashing in on a bet.

An example of this can be found in BlackRock Inc.’s $5.1 billion long-term U.S. Treasuries ETF, which saw the greatest volume of withdrawals this year among similar funds. Among investors yanking cash was Passport Capital, the $4 billion hedge-fund firm run by John Burbank.

The firm sold its entire $217 million stake in the ETF in the period ended March 31, about three months after purchasing the shares, according to data compiled by Bloomberg.

On one hand, this is a remarkable amount of money, equal to about 4 percent of the fund at its current size. It’s also notable because ETFs have traditionally been marketed to individuals as a quick, easy way to invest in debt.

But that’s changing. These funds are increasingly being used by and advertised to big institutions, which are looking for the same efficiency as smaller investors at a time when it’s getting more difficult to execute big trades.

To continue reading about this new normal for both small and big investors, click here, for the article from Bloomberg’s Lisa Abramowicz and her article, “A $200 Million Hedge-Fund Trade in Your Bond ETF Is Normal Now”.

private label etf ETC

ETF-in-a-Box: You Too Can Launch An ETF for Peanuts

The barrier to entry for issuers of ETFs keeps getting lower. What used to cost anywhere between $1mil-$5mil and many months of filing paper work to create and finally launch a new ETF, now, for just only $100k (before marketing/advertising costs), you too can launch an exchange-traded fund in under three months and maybe even become the next iShares or Wisdom Tree. At least that is the premise profiled by Lara Crigger’s post at ETF.com in her coverage of J. Garrett Stevens and his white-label ETF maker, Exchange Traded Concepts LLC, aka “ETC”.

Below is extracted from Crigger’s coverage…

Garret Stevens, President of ETC
Garret Stevens, President of ETC

Six years ago, J. Garrett Stevens, CEO of FaithShares, had just launched his first ETFs. He and his partners sat back, counted their victories, and eagerly waited for investors to bang down the door to buy up the funds.

They never did.

The rest of the story is all too familiar. Stevens and his partners had spent far more than they anticipated on getting their funds to market, with little left over to make sure investors actually knew the funds existed. As a result, the five FaithShares ETFs, despite solid performance, failed to accrue enough assets to survive. FaithShares shuttered its doors in 2011.

But a funny thing happened on the way to dissolution.

“People started calling, wanting to know if they could buy our exemptive relief,” said Stevens. “Or they wanted to know if we could consult and help them launch their own funds, since we’d already been down that road.”

That gave Stevens an idea: a white-label service that would shoulder the burden for would-be ETF providers looking to launch their very own funds. Thus was Exchange-Traded Concept (ETC) born.

To continue reading about Garett Stevens and his new company, the Exchange Traded Concept (ETC), click here

 

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Corporate Bond ETFs for Single Issuers??

MarketsMuse ETF and Fixed Income departments merge and gives credit to Morgan Stanley as they raise their own ETF flag with an innovative idea to package a single corporate bond issuer’s debt into one neat package so that ETF investors can express their bets on the issuer’s outstanding credit… Here’s the excerpt courtesy of Reuters:

 A bank proposal to pool corporate bonds of a single borrower into an ETF-style “trust” to help solve the credit markets’ chronic illiquidity problem is being circulated among issuers and investors, and finding some support.

Though still conceptual, the idea initiated by Morgan Stanley reckons investors could find more liquidity in a single instrument that represents several bonds issued by one borrower in a certain maturity, than in the individual bonds themselves.

According to the proposal, the trust would get positions in all of an issuer’s outstanding securities in the secondary market.

It would then group them according to whether they have short, intermediate or long-dated maturities, and issue separate trust certificates against each of those maturity buckets.

An underlying unit of bonds to represent each maturity trust certificate would be created and redeemed in a similar way as existing bond index exchange-traded funds.

To continue reading about Morgan Stanley’s new idea for an ETF, click here.

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RBC Global Asset Launches 5 New ETFs To Access International Equity Markets

MarketsMuse blog update profiles RBC Global Asset Management launching five new liquid alternative equity ETFs. These five new ETFs allow for investors to be exposed to Canadian, American, and other international equity markets. These ETFs are now available for purchase on the Toronto Stock Exchange (TSX). These new ETFs are: 

  • RBC Quant Canadian Equity Leaders ETF (RCE)
  • RBC Quant U.S. Equity Leaders ETF (RUE) 
  • RBC Quant EAFE Equity Leaders ETF (RIE)
  • RBC Quant U.S. Equity Leaders (CAD Hedged) ETF (RHS)
  • RBC Quant EAFE Equity Leaders (CAD Hedged) ETF (RHF)

This update is courtesy of FINAlternatives’ article, “RBC Launches Liquid Alternative Quant Equity ETFs”, with an excerpt below. 

finalternatives11111RBC Global Asset Management has launched five new liquid alternative equity ETFs that employ quantitative, rules based methodologies for investment selections instead of relying on an index, according to a press release.

The new funds offer investors and advisors diversified core equity exposure in Canadian, U.S. and international equity markets, together with the option to hedge foreign currency risk, and trade on the Toronto Stock Exchange.

The RBC Quant Canadian Equity Leaders ETF (RCE) focused on companies domiciled in Canada and follows the RBC GAM’s rules-based Quant Equity Leaders investment process. It carries a management fee of 0.39%.

The RBC Quant U.S. Equity Leaders ETF (RUE) is similar to RCE but focuses instead on U.S.-domiciled companies that pass muster in the Quant Equity Leaders investment process. It also has a management fee of 0.39%. The ticker symbol “RUE” represents Canadian-dollar-denominated units, while the ticker symbol “RUE.u” represents U.S.-dollar denominated units.

To continue reading about these five new ETFs from RBC Global Asset Management, click here.

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ETFs Are Taking Over The World…

MarketsMuse blog update profiles ETFs taking over the world, well the hedge fund world at least. ETFs assets are about to total $3 trillion which means are they are poised to out raise hedge funds. This update is courtesy of Bloomberg’s article, “ETF Assets Set to Overtake Hedge Funds This Year“, by Trista Kelley, Inyoung Hwang, and Lorcan Roche Kelly, with an excerpt below.

They’re cheap, easy to use, and they’re winning over more investors than ever.

Now exchange-traded funds — investment tools that seek to replicate the performance of a portfolio of securities — are growing at such a clip that their assets are poised to overtake those of hedge funds.

It’s no secret hedge funds have had a rough couple of years. Without the returns to make up for high taxes and fees, more investors are turning to the ever-growing range of ETF products on offer. ETFs have lower fees than mutual funds, lower taxes than index funds and are easier to buy or sell quickly than either. And underpinning gains is loose central-bank policy that has been fueling a general movement toward passive investing.

To continue reading about ETFs overtaking hedge funds, click here.

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Mining ETF Rises From The Ashes

MarketsMuse blog update profiles the SPDR Metals & Mining ETF that has recently performed very well over the past few months. When oil prices reached a new low in January it sent a ripple across other sectors including the metal and mining sectors. XME was trading at its lowest price since March 2009. Although the sector ETFs are still on their road to recovery, the ETF, XME, is showing drastic improvement compared to many others. This MarketsMuse blog update is courtesy of an ETFTrends’ article by Todd Shriber titled, “This ETF is Springing to Life“, with an excerpt below. 

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Mining stocks and the corresponding exchange traded funds have moved in fits and starts over the past few years. Unfortunately, there have been more fits than pleasantries, but the moribund industry could finally be putting in a legitimate bottom.

Though it is still down 27.5% over the past year, the SPDR Metals & Mining ETF (NYSEArca: XME) is up nearly 8% over the past month. That is a solid run for an ETF that started the year trading at its lowest levels since the first quarter of 2009. [Woes for a Mining ETF]

XME is meriting of consideration as some analysts believe the worst is behind the commodities space. Those were the sentiments of R.W. Baird when the research firm upgraded Dow component Caterpillar (NYSE: CAT) and Joy Global (NYSE: JOY) to outperform on Monday, according to CNBC.

To continue reading about the rise of this mining ETF, click here.

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Could Russia ETFs Be Making A Comeback?

After a rough year, Russia ETFs have been trying to make a comeback and it seems they may have finally done it. MarketsMuse blog update profiles the changes Russia has made that has helped boost Russia ETFs. This blog update is courtesy of Nasdaq’s article, “Russia ETFs Making a Strong Comeback – ETF News And Commentary“, with an excerpt below. 

2014 has been a catastrophic one for Russian equities thanks to the ban imposed on the nation by the West following its Crimea (erstwhile Ukrainian territory) annexation in the first half. The massive oil price crash in the second half also spurred many investors to abandon the country’s equities in apprehension of significant economic losses. As a result, Russian stocks almost halved in price last year .

However, things have changed in 2015. Like many other countries across the globe, Russia also entered into a cycle of rate cut in 2015 having slashed the key rate for the third time so far this year to ward off an impending recession. An upward movement in the local currency and cooling inflation has made this possible, per Bloomberg . 

In late April, Moscow reduced the key one-week interest rate to 12.5% from 14% and hinted at further easing if required. Notably, Russia generates about 50% of its revenues from oil and natural gas resources. So, this oil-dependent economy was crushed by the crude carnage last year. The Russian currency, the ruble, lost about 50% against the greenback in the second half of 2014 and stoked inflation.

To keep reading about Russia ETFs comeback, click here.