Americas ETP News
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CFTC.gov Swaps Report Update
February 14, 2018--CFTC's Weekly Swaps Report has been updated, and is now available.
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Source: CFTC.gov
Horizons ETFs US and Cadence Capital Management Launch Hedged US Dividend Yield ETF
February 14 2018--Horizons ETFs Management (US) LLC ("Horizons US"), a member of one of the largest collective families of ETFs in the world, in partnership with Cadence Capital Management ("Cadence"), announces the launch of the Horizons Cadence Hedged US Dividend Yield ETF, which begins trading today on the Cboe BZX Exchange under the symbol "USDY."
Co-managed by Cadence and Horizons, USDY is a multi-factor ETF that seeks income and long-term growth of capital, with a strategy that seeks to potentially provide a measure of downside protection through the use of index options.
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Source: Horizons ETFs Group
Mirae Asset snaps up $10bn ETF provider Global X
February 13, 2018--Mirae Asset Global Investments has snapped up Global X, a $10bn exchange-traded fund provider that is partly owned by JPMorgan, in another example of how asset management companies are moving into and consolidating the fast-expanding industry.
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Source: FT.com
Volatility's Revenge
February 13, 2018--VOLATILITY'S REVENGE
Last week, we discussed how ETF flows have historically responded to market downturns. That said, we did not anticipate the drawdown to return so violently, nor did we expect Volatility ETPs to be at the center of this sell off.
This week, as requested by some ETF Think Tank members, we provide a more granular review of ETF flows post sell offs, and then a deep dive into what happened with Volatility ETPs.
In the last TETFindex update, we showed the flows of all US ETFs in the 3 months following any 6% monthly drop in the S&P 500. This prompted some ETF Think Tank members to ask which asset classes received those flows.
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Source: Toroso Investments
CSE Unveils Canada's First Platform for Clearing and Settling Securities through Blockchain Technology
February 13, 2018--The Canadian Securities Exchange ("CSE" or "the Exchange") is pleased to announce that it is introducing an innovative securities clearing and settlement platform that harnesses the unique features of blockchain technology.
The platform will enable companies to issue conventional equity and debt through tokenized securities, which would be offered to investors through Security Token Offerings ("STOs"). Unlike blockchain-based cryptocurrencies, the STOs will be subject to full regulation by applicable securities commissions.
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Source: Canadian Securities Exchange
SEC questions Credit Suisse about volatility product: WSJ
February 13, 2018--Credit Suisse (CSGN.S) has been questioned by the U.S. markets watchdog about the volatility fund that the Swiss bank is terminating after its value plunged, the Wall Street Journal reported on Tuesday.
The U.S. Securities and Exchange Commission called Credit Suisse last Tuesday, the day after the market rout that prompted the bank to announce liquidation of its VelocityShares (XIV.P) product, the paper said
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Source: Reuters
Innovation Shares Announces Launch Of NextGen Vehicles & Technology ETF (EKAR)
February 13, 2018--EKAR is the first AI driven ETF to provide exposure to electric & self-driving vehicles; Follows January launch of KOIN, first AI powered blockchain-focused ETF
Innovation Shares LLC, a sponsor of unique thematic Exchange Traded Funds, is today announcing the launch of the Innovation Shares NextGen Vehicles & Technology ETF (NYSE Arca: EKAR), the first artificial intelligence (AI) driven ETF to provide investors with exposure to the universe of stocks involved in the growing categories of electric and self-driving/autonomous vehicles.
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Source: Innovation Shares LLC
Institutional Investors Spend More on Trading Technology, Less on Traders
February 13, 2018--Technology spending is crowding out trader pay on institutional trading desks. Overall, buy-side trading desk budgets are expected to hold relatively flat in 2018 at $17.3 billion industry-wide. However, a new report from Greenwich Associates shows that within those budgets, institutional investors are shifting their spending from trader pay to technology.
As recently as 2015, institutions were spending an average of almost 70% of overall trading desk budgets on trader compensation, with the remaining approximately 30% going to technology. In 2018, that allocation is expected to shift to just 60% compensation and 40% technology.
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Source: Greenwich Associates
ETFGI reports that assets invested in ETFs and ETPs listed in the US increased by 6.40% in January 2018 to reach a record high of US$3.642 trillion
February 13, 2018--ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in ETFs and ETPs listed in the US increased by $219 Bn or 6.40% in January 2018 to reach a record high of US$3.64 trillion, this represents the greatest monthly growth in assets since October 2015, when assets increased by $150 Bn. (All dollar values in USD unless otherwise noted.)
According to ETFGI's January 2018 US ETF and ETP industry insights report, an annual paid-for research subscription service, the US ETF industry had 2,157 ETFs and ETPs, assets of US$3.64 Tn, from 132 providers listed on 4 exchanges.
Highlights
Assets invested in ETFs/ETPs listed in the US increased by a record $219 billion during January to reach a new high of $3.64 trillion
In January 2018, ETFs and ETPs listed in the US gathered net inflows of $78.8 billion
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Source: ETGI
Merk Insight: This Time is Different. Really?!
February 13, 2018--"Don't panic, buy the dip, who cares?" or "These are rumblings of an earthquake, people will be hurt like in 1929"-which one is it? I would call it a wake-up call. Let me explain:
In recent years, markets had appeared eerily "safe". Central banks promised to do "whatever it takes", provided "forward guidance" to keep rates low, even printed money to buy government debt, calling it "quantitative easing."
Sure enough, volatility has been low, valuations have risen. Now, just as the fellow from the cartoon above, many might have thought something isn't quite right. As a result, many investors have been looking to buy some insurance, protection, just in case this goldilocks environment doesn't last forever. For those who have looked for ways to protect against a decline, they likely noticed that it had been rather expensive. Indeed, we had come to the conclusion some time ago that it may be more prudent for many investors to hold more cash rather than hold risk assets on the one hand, but then, say, buy put options in addition. However, cash in a 0% interest rate environment is not sexy (and holding cash a recipe for professional investors to lose client assets), causing many investors to have come up with ever more creative ways to "diversify."
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Source: Merk Investments
