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Merk Research: Business Cycle and Markets update
February 7, 2018--The business cycle might be an important consideration for investors because historically S&P 500 returns have been considerably worse on average during recessions compared to expansions.
view the Merk Business Cycle(PDF)
Source: Merk Investments
CFTC.gov Swaps Report Update
February 7, 2018--CFTC's Weekly Swaps Report has been updated, and is now available.
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Source: CFTC.gov
Opportunity exists in measured risk-PIMCO Asset Allocation Outlook 2018
February 7, 2018--Singles and Doubles
With market volatility on the rise, consider a broad set of relative value opportunities across global markets.
Markets entered 2018 with the wind at their back: double-digit equity returns, strong momentum, and expectations that the synchronized global growth and corporate earnings recovery we saw in 2017 should continue into 2018. So damn the torpedoes, full speed ahead? Not quite, as recent volatility suggests some storm clouds could be gathering. Central banks globally are moving away from emergency levels of easing, and large fiscal stimulus in the U.S. in the late stages of the business cycle could have unintended consequences. And, of course, valuations matter.
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Source: Pimco
DR Index Monthly Performance-January 2018
February 7, 2018--The BNY Mellon DR Index Monthly Performance for January 2018 report is now available.
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Source: BNY Mellon
BlackRock warns of risk as inverse volatility products sink
February 6, 2018--BlackRock Inc, the world's largest asset manager, warned of the risk of so-called inverse Exchange-Traded Products (ETPs) following Monday's steep decline in financial instruments that bet against wild downward swings in the markets.
Monday's stock market rout left two of the most popular ETPs, which investors use to benefit from calm rather than volatile conditions, facing potential liquidation, market participants said.
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Source: Reuters
Credit Suisse AG Announces Event Acceleration of its XIV ETNs
February 6, 2018--Credit Suisse AG ("Credit Suisse") today announced the event acceleration of its VelocitySharesTM Daily Inverse VIX Short Term ETNs ("XIV") due to an acceleration event. The acceleration date is expected to be February 21, 2018.
Since the intraday indicative value of XIV on February 5, 2018 was equal to or less than 20% of the prior day's closing indicative value, an acceleration event has occurred. Credit Suisse expects to deliver an irrevocable call notice with respect to the event acceleration of XIV to The Depository Trust Company by no later than February 15, 2018.
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Source: Credit Suisse AG
Four Companies Scheduled to Enter the Renaissance IPO ETF (NYSE: IPO)
February 6, 2018---Four companies are scheduled to enter the Renaissance IPO ETF (NYSE: IPO) at the market's close on Thursday, February 8th.
ADT (ADT)
ADT, an Apollo-backed provider of monitored security devices for homes and businesses, raised $1.5 billion by offering 105 million shares at $14 on January 18th. At pricing, the Boca Raton, FL-based company commanded a market value of $10.8 billion.
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Source: Renaissance Capital
What will a bear market do to ETFs?
February 6, 2018--ETF RESPONSE TO A BEAR MARKET POSSIBILITY
Volatility has returned to the markets after historical levels of dormancy. What does this mean for the ETF ecosystem? After almost 77 billion in inflows in January, what should we expect to see with increased volatility?
Bloomberg noted last week that ETF flows were strong even though we experienced a sharp market sell-off. We decided to explore how ETF flows have historically responded to market declines.
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Source: Toroso
Monthly ETF Inflows Reach Record High in January: State Street
February 6, 2018--US-listed exchange-traded funds' inflows reached a new high of $78 billion last month, with equity funds outpacing bond funds by a margin of 7 to 1, according to data from State Street.
In its latest monthly ETF flow report, SSGA reported that slightly less than $67 billion flowed into stock ETFs while just over $9 billion flowed into fixed income funds. Commodity and specialty ETFs split the remaining flows with less than $900 million inflows each.
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Source: thinkadvisor.com
Metaurus Advisors Launches Two Innovative ETFs Allowing Separate Investments in Either the Dividends or the Price Performance of the U.S. Equity Market
February 6, 2018--Metaurus Advisors LLC, a financial technology and innovation company, announces the launch of two new Exchange Traded Funds (ETFs) for investors seeking either dividend cash flow or equity market growth, each with a passive, index-based strategy.
Not all investors have the same investment goals. Some prefer more cash flow through dividends while others prefer stock price appreciation. Index investors have never been able to separate the two from one another-until now.
Metaurus Advisors' US Equity Cumulative Dividends Fund-Series 2027 (NYSE Arca: IDIV) provides income-oriented investors a low cost way to participate solely in the actual ordinary dividends of the companies in the S&P 500 Index(R) without exposure to the price movements in the constituent index stocks.
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Source: Metaurus Advisors