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U.S. Weekly FundFlows Insight Report: Equity ETFs Take in Net New Money Despite a Market Meltdown During the Week
October 25, 2018--For the second week in three investors were net purchasers of fund assets (including those of conventional funds and ETFs), injecting $5.6 billion for Lipper's fund-flows week ended October 24, 2018.
Fund investors were net purchasers of equity funds (+$4.2 billion) and money market funds (+$6.4 billion) while being net redeemer of taxable fixed income funds (-$4.5 billion) and municipal bond funds (-$495 million).
Market Wrap-Up
The triple hangover of trade uncertainties, Federal Reserve rate hikes on the horizon, and slowing global growth weighed on investor psyche during the fund-flows week. Despite a strong beginning to the Q3 earnings season and continued good news on the U.S. economic front, considerations about Italy's budget crisis, Saudi Arabia's complicity in a dissident journalist's death, ongoing U.S./China trade disputes, and the upcoming midterm elections caused investors to flee equities.
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Source: Thomson Reuters
Distillate Capital Launches DSTL, Fundamental Stability & Value ETF
October 24, 2018--Rationally-defined value and quality metrics utilize proprietary normalized cash yield
methodologies
Distillate Capital, a Chicago-based asset manager
focused on fundamental equity analysis, today announced the launch of its first ETF.
The Distillate U.S. Fundamental Stability & Value ETF (NYSE:DSTL) seeks to distill a
starting universe of the roughly 500 largest U.S. companies by market cap into only the
stocks where quality and value overlap.
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Source: Distillate Capital
BlackRock Takes Sustainable Investing Mainstream with Range of Low-Cost Sustainable Core ETFs
October 23, 2018--Three Launches: New iShares Sustainable Core ETFs, new portfolio analytics, transparent ESG data
BlackRock projects global ESG ETF assets will rise to $400 Billion by 2028
iShares, a pioneer in simplifying investment portfolios for investors, introduces the iShares Sustainable Core-a line-up of sustainable ETFs that bundle the ability to focus on purpose and performance-for the core of investor portfolios.
To simplify sustainable investment's, BlackRock (NYSE:BLK) also unveiled transparent ESG data disclosures, new ESG portfolio analytic tools, and increased accessibility with ESG focused model portfolios.
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Source: BlackRock
Winthrop Capital Management-Economic & Capital Market Outlook Fourth Quarter, 2018
October 23, 2018--If you have been invested in the U.S. equity markets over the past five years, you have experienced a solid return and resurgence in the market value of your investment portfolio. In its basic form, a capital market, is simply a mechanism for pricing risk. Over the past five years, we have seen increases in prices on publicly traded risk assets, such as stocks and high yield bonds.
However, markets are not necessarily efficient at pricing risk all of the time. Equity investors have been richly rewarded over the past five years in spite of growing global risks. However, this period of rising equity prices and low levels of volatility is about to be tested as the global economy transitions and capital markets adjust to higher interest rates. The risk premium, which investor's demand on risk assets, needs to adjust higher.
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Source: Winthrop Capital Management
AdvisorShares Active ETF Market Share Update-Week Ending 10/19/2018
October 23, 2018--Actively managed ETFs gained $615 million despite the recent market decline, which brought the total net assets to $66.4 billion.
JP Morgan and iShares led weekly AUM growth among sponsors with $360 million and $102 million gains, respectively. Two fund launches occurred last week and brought the total number of actively managed ETFs to 240.
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Source: AdvisorShares
BlackRock stakes claim on 'sustainable investing' revolution
October 22, 2018--Larry Fink estimates such ETF assets will grow from $25bn to over $400bn in a decade
BlackRock stakes claim on 'sustainable investing' revolution. BlackRock intends to become a global leader in "sustainable investing", says Larry Fink, as the world's largest asset manager launched a range of exchange traded funds in the US and Europe that incorporate environmental, social and governance criteria.
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Source: FT.com
Lipper U.S. Mutual Funds & ETPs Q3 2018 Snapshot
October 19, 2018--In this issue of Lipper's U.S. Mutual Funds & Exchange-Traded Products Snapshot we feature a summary of total net assets (TNA), estimated net flows, new fund creations, and fund liquidations for conventional funds and exchange-traded products (ETPs) for Q3 2018, comparing the changes to those of prior quarters and highlighting the largest individual gainers and losers of both groups.
The Snapshot provides readers a powerful, easy-to-use guide and quick-reference tool to help them discern fund trends during the quarter.
Highlights:
TNA in the conventional funds business (not including ETPs and variable insurance products [VIPs]) advanced, climbing $538.8 billion from Q2 2018 to $19.436 trillion for Q3 2018.
TNA in U.S. ETPs (including exchange-traded funds, exchange-traded notes, exchange-traded commodities, limited partnership commodity pools, master limited partnerships, and exchange-traded fund unit investment trusts) rose 5.72% from $3.534 trillion for Q2 2018 to a little over $3.736 trillion for Q3 2018.
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Source: Thomson Reuters
Warnings mount for leveraged-loan market
October 19, 2018--At the most recent meeting of the Federal Open Market Committee in September, Federal Reserve officials debated the usual topics.
Is inflation running hot? How tight is the labour market? And of course, what's the future path of interest rates? This time around, however, policy makers raised concerns about something else as well: leveraged loans.
view more U.S. Weekly FundFlows Insight Report: Despite Plus-Side Returns, Fund Investors Remain Guarded During the Week view more
The FinHub will serve as a resource for public engagement on the SEC's FinTech-related issues and initiatives, such as distributed ledger technology (including digital assets), automated investment advice, digital marketplace financing, and artificial intelligence/machine learning. The FinHub also replaces and builds on the work of several internal working groups at the SEC that have focused on similar issues.
Source: SEC.gov
October 18, 2018--For the second week in three investors were net sellers of fund assets (including those of conventional funds and ETFs), withdrawing a net $35.0 billion for Lipper’s fund-flows week ended October 17, 2018. Fund investors were net redeemers of equity funds (-$17.5 billion), money market funds (-$15.0 billion), taxable fixed income funds (-$1.9 billion), and municipal bond funds (-$642 million).
Market Wrap-Up
Investors started the fund-flows week on a sour note, pushing the markets closer to correction territory after the Dow Jones Industrial Average lost almost 1,400 points over two days as investors continued to fret over rising bond yields and the prospect of higher interest rates.
Source: Thomson Reuters