ETFGI Weekly Newsletter July 2017
​Europe
State Street Global Advisors reshapes EMEA leadership [updated] | IPE. Read more.
Lyxor ETF hires Source UK sales head The ETF business at Lyxor has made eight additions to its UK team in the last 12 months. Financial News. Read more.
Citi hires ex-Deutsche boss to run algo trading - US bank has been investing in its electronic trading teams across asset classes this year. Financial News. Read more.
Latin America
Vanguard Names Juan Manuel Hernandez to Lead Mexico Business
World's Largest Mutual Fund Company Expands Business Capabilities in Mexico. PRNewswire. Read more.
Summary
Vanguard to expand in Mexico and names Juan Hernandez to head business.
Vanguard has cross-listed 65 US-domiciled ETFs on the Bolsa and 26 ETFs for SIEFOREs. Vanguard is the world's second-largest ETF provider* and largest mutual fund company*.
Vanguard Investments Mexico announced today that Juan Manuel Hernandez has been named the head of Vanguard's business in Mexico as the company expands its efforts to meet local investors' needs for low-cost and broadly diversified investment products.
Hernandez joins Vanguard from Blackrock Inc. Mexico, where he served as head of institutional sales. He also held the head of sales position for iShares Mexico.
"Vanguard has been serving investors in Mexico since 2009 from our headquarters in the US, and we believe regulatory, fee, legal, and capital market structures are moving in the right direction to enable Vanguard to expand in Mexico," said Kathy Bock, head of Vanguard Americas. "We are delighted to have someone of Juan's caliber to lead Vanguard's work to further increase access to our products to investors in Mexico."
"Many companies talk about their client focus but Vanguard actually lives and breathes it as a result of its mission to take a stand for all investors, treat them fairly, and give them the best chance at investment success. It has a global reputation for offering products solely designed to serve investors' needs and goals. Vanguard's desire to deepen its business is a huge win for Mexican investors and I'm honored to have this opportunity to be part of the effort," Mr. Hernandez said.
Vanguard, the world's largest mutual fund company and one of the world's largest investment management companies, has gained a global reputation for doing what's right for investors. "We do that by advocating for low-cost investment products and transparency in what investors are paying for their investments," Ms. Bock said.
"Our views of investing are straightforward, easy to understand and designed for the long term. With more than 40 years of experience in successfully managing money for individuals and institutions, we have helped millions of investors meet their investment objectives around the world. Our goal is to do the same for more investors in Mexico."
Vanguard, the world's second-largest ETF provider, offers 65 Vanguard US-domiciled ETFs cross-listed on the International Quotation System (SIC) of the Bolsa Mexicana de Valores and 26 ETFs approved as eligible investments for Mexican Sociedades de Inversion Especializadas para el Retiro (SIEFOREs).
Vanguard has worked with The Compass Group as its distribution partner since 2009 in Mexico, Chile, Colombia, and Peru.
ProShares Launches First U.S. Equity ETF Specifically Designed to Outperform in a Rising Rate Environment. Business Wire. Read more.
(BUSINESS WIRE)--ProShares, a premier provider of ETFs, announced today the launch of ProShares Equities for Rising Rates ETF (EQRR), the first U.S. equity ETF specifically designed to outperform traditional large-cap indexes, such as the S&P 500, in a rising interest rate environment. The fund is benchmarked to the Nasdaq U.S. Large Cap Equities for Rising Rates Index and is listed on the Nasdaq exchange.
“EQRR is for investors who expect rising interest rates and want to outperform traditional large-cap indexes as rates go up,†said Michael L. Sapir, co-founder and CEO of ProShare Advisors, LLC, the advisor to ProShares. “EQRR takes those sectors most positively correlated with interest rates, then within those sectors invests in the companies that have tended to outperform during periods of rising rates."
The fund seeks to track the performance of the Nasdaq U.S. Large Cap Equities for Rising Rates Index. The index methodology starts with the 500 largest listed U.S. stocks and selects the five U.S. large-cap sectors that have most recently demonstrated the highest correlation to weekly changes in 10-year U.S. Treasury yields. It then identifies the top 10 stocks in each sector that have the highest correlation of relative performance—versus 500 of the largest listed U.S. stocks—to changes in the 10-Year yield. Stocks in sectors with a higher correlation to rising rates have a heavier weighting in the index. This process is repeated quarterly to maintain a portfolio of 50 stocks. The resulting portfolio aims to provide relative outperformance compared to traditional large-cap indexes during periods of rising U.S. Treasury interest rates.
(BUSINESS WIRE)--The SPDR® Exchange Traded Fund (ETF) listed in the table below, announced today that the Fund received a payment as authorized claimant from a class action settlement related to Genworth Financial, Inc. (NYSE: GNW).
ETF Managers Group Announces Fund Name and Index Provider Changes. Business Wire. Read more.
ETF Managers Group LLC (“ETFMGâ€) is renaming six ETFs within the ETF Managers Series Trust. On August 1, 2017, the resulting name changes are as follows:
These funds were originally launched in conjunction with ISE ETF Ventures, a unit of ISE Holdings LLC. On July 1, 2016, NASDAQ, Inc. acquired ISE ETF Ventures as part of its acquisition of ISE Holdings from its parent company Deutsche Boerse AG.
Additionally, beginning August 1, 2017, the indexes for HACK, IPAY, and SILJ will be provided by Prime Indexes, which has selected Solactive AG as the index calculation agent. Information about the indexes can be found by visiting www.primeindexes.com.
As of August 1, 2017, investors may find information on the above funds at www.etfmgfunds.com. Investors can also contact ETFMG at 1-844-383-6477.
About ETF Managers Group (ETFMG)
ETFMG is a leading Exchange Traded Funds (ETF) private label services company. ETFMG offers a full range of ETF product services to the asset management community including commodity pool ETPs as well as both active and passive ETF funds. The services provided include product operations, portfolio management, regulatory, financial and compliance management. ETF Managers Group offers active marketing and dedicated wholesale services for all ETF product types through its registered broker dealer ETFMG Financial LLC.
About Prime Indexes
Prime Indexes creates financial indexes that solve problems for both professional and self-directed investors. Our index designs focus on emerging trends in the investment industry, and our founders have participated in the creation and launch of over a hundred financial products and indexes across all major asset classes.
Prime Indexes are used as the basis for innovative investment solutions for investors, and use intuitive design principles so that new investment products can ultimately provide low-cost, efficient, and convenient market access. Prime Indexes was founded by Kris Monaco and Christopher Yeagley. Mr. Monaco was formerly the head of ISE ETF Ventures and Christopher Yeagley was Managing Director and head of US Equity Structured Products at UBS AG, including its E-TRACS ETN platform.
Carefully consider the Funds' investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Funds' prospectuses, which may be obtained by calling 1-844-ETF-MGRS (1-844-383-6477), or by visiting www.etfmgfunds.com. Read the prospectuses carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Narrowly focused investments typically exhibit higher volatility. It is not possible to invest directly in an index.
ETF Managers Group LLC is the investment adviser to the funds. The funds are distributed by ETFMG Financial LLC. ETF Managers Group LLC and ETFMG Financial LLC are wholly owned subsidiaries of Exchange Traded Managers Group LLC (collectively, “ETFMGâ€). ETFMG Financial LLC is not affiliated with PureFunds, ISE, NASDAQ, Deutsche Boerse AG, Solactive AG, or Prime Indexes.
Assets Under Management
Total assets under management (AUM) at June 30, 2017, were $858.3 billion (March 31, 2017: $834.8 billion), an increase of $23.5 billion during the second quarter. Long-term net outflows were $0.6 billion and total net inflows were $2.4 billion for the second quarter. The net outflows are largely attributable to a slowdown of sales in Asia and heightened redemptions in Stable Value, as clients moved toward more active capabilities.
Assets Under Management of $741.2 Billion
Assets Under Management ("AUM") were $741.2 billion at June 30, 2017 compared with $728.4 billion at March 31, 2017, resulting from the reclass of $16.0 billion of separately managed account assets previously classified as Assets Under Advisement, $8.4 billion in positive market performance and other, $0.7 billion in positive foreign exchange and long-term net inflows of $0.5 billion, partially offset by liquidity outflows of $11.5 billion.
The Nasdaq Stock Market® Welcomes 14 New ETPs in the Second Quarter of 2017 Nasdaq:NDAQ. Globe Newswire. Read more.
(GLOBE NEWSWIRE) -- Nasdaq (Nasdaq:NDAQ), the single largest U.S. equity exchange by market share, announced 14 new exchange-traded product (ETP) listings from five issuers during the second quarter of 2017. Nasdaq now has a total of 348 products listed from 39 issuers as of June 30, 2017. Overall, Nasdaq listed ETPs gained more than $20B in new assets between the first quarter and second quarter of 2017, of which, $1B in asset growth can be attributed to 2016’s newly listed products.
S&P Global Reports Second Quarter Results. PR Newswire. Read more.
PRNewswire/ -- S&P Global (NYSE: SPGI) today reported second quarter 2017 results with revenue of $1,509 million, an increase of 2% compared to the same period last year. On an organic basis, second quarter revenue increased 10% with strong growth in every business segment.
Net income increased 10% to $421 million and diluted earnings per share grew 13% to $1.62. Adjusted net income increased 16% to $446 million and adjusted diluted earnings per share increased 19% to $1.72. The adjustments in the second quarter of 2017 were primarily for deal-related amortization, restructuring and an asset write-off.
Virtus Investment Partners Announces Financial Results for the Second Quarter 2017. PR Newswire. Read more.
/PRNewswire/ -- Virtus Investment Partners, Inc. (NASDAQ: VRTS) today reported financial results for the three months ended June 30, 2017. The results reflect the acquisition of RidgeWorth Investments that closed on June 1, 2017.
WisdomTree Model Portfolios Now Available Through Envestnet Wealth Management Platform Nasdaq:WETF. Globe Newswire. Read more.
(GLOBE NEWSWIRE) -- WisdomTree Investments, Inc. (NASDAQ:WETF), an exchange-traded fund (“ETFâ€) and exchange-traded product (“ETPâ€) sponsor and asset manager driven by research and technology, today announced WisdomTree’s model portfolios will now be available on the Envestnet Wealth Management platform. Envestnet, Inc. (NYSE:ENV) is the leading provider of intelligent systems for wealth management and financial wellness.
Today Euronext (Paris:ENX) (Amsterdam:ENX) (Brussels:ENX) announced its results for the second quarter of 2017.
Strong quarter, with improved cash and derivatives volumes:
Africa
JSE offers investors more choice with the listing of Satrix global ETFs 3 new ETFs offer investments in global developed and emerging markets. Johannesburg Stock Exchange. Read more.
Johannesburg, 25 July 2017: The Johannesburg Stock Exchange (JSE) now offers investors an even wider range of products which give investors exposure to global markets with the listing of three new Satrix exchange traded funds (ETFs). The new ETFs will track the MSCI World index, MSCI Emerging Markets Investable Market Index and the S&P 500®.
ETFs are investment products which track the value of a basket of shares or other assets like bonds and commodities. Prejelin Naggan, Head of Primary Markets at the JSE, says the new ETFs can assist investors further in managing their offshore exposure and diversifying their portfolios. “The JSE offers a wide range of ETFs which provide a cost-effective way for investors to get exposure to local equity markets as well as commodities, bonds, money markets and listed property. The new ETFs now also gives investors even greater choice when they want to include exposure to overseas markets in their portfolios.â€
Latin America
Launches
o Wisdomtree Japan Equity Ucits ETF – USD Hedged Acc (DXJA)
o wisdomtree India Quality Ucits Etf – Usd Acc (EPIE)
o Link to the Mexican Stock Exchange weekly update
o Their most recent cross listed product was the Global ex-Mexico fund (XMX) on to the Mexican stock exchange that since its launch in June had nearly 50 million of flows according to its Q2 Earnings Call.
o With these two additional ETFs, the firm will have 35 cross-listed products in Mexico.
o Vanguard has cross-listed 65 US-domiciled ETFs on the Bolsa and 26 ETFs for SIEFOREs.
o Vanguard Investments Mexico announced that Juan Manuel Hernandez has been named the head of Vanguard's business in Mexico as the company expands its efforts to meet local investors' needs for low-cost and broadly diversified investment products.
o Hernandez joins Vanguard from Blackrock Inc. Mexico, where he served as head of institutional sales. He also held the head of sales position for iShares Mexico.
o "Vanguard has been serving investors in Mexico since 2009 from our headquarters in the US, and we believe regulatory, fee, legal, and capital market structures are moving in the right direction to enable Vanguard to expand in Mexico," said Kathy Bock, head of Vanguard Americas. "We are delighted to have someone of Juan's caliber to lead Vanguard's work to further increase access to our products to investors in Mexico."
o Vanguard, the world's second-largest ETF provider, offers 65 Vanguard US-domiciled ETFs cross-listed on the International Quotation System (SIC) of the Bolsa Mexicana de Valores and 26 ETFs approved as eligible investments for Mexican Sociedades de Inversion Especializadas para el Retiro (SIEFOREs).
o Link to the news' source
Asia Pacific
Haitong International makes headway on growing India business Asia Asset Management. AsiaAsset. Read more.
Top performance report marked first anniversary of CreditEase Wealth Management Toumi RA. PR Newswire. Read more.
/PRNewswire/ -- CreditEase Wealth Management Toumi RA released its performance report in Beijing on July 14, 2017, showing the platform's stable return and outstanding risk control capability amid severe turbulence of global capital market in the past year.
Based on global ETF portfolios optimized by intelligent algorithm, Toumi RA achieved 2.55% - 11.48% of cumulative return during the period, remarkably higher than its competitors, and generated gains for 99.6% investors while only 10% investors earned returns from A-shares market. The assets under management of Toumi RA increased by 33.6% monthly, compared with 6% of Betterment and 3% of Wealthfront, and the reinvestment rate reached 52.2% with an expansion by 268%.
ETFGI is a wholly independent research and consultancy firm providing services to leading global institutional and professional investors, the global exchange traded fund and exchange traded product ecosystem, its regulators and its advisers. ETFGI produces extensive ETF-specific analysis covering over 4,700 ETFs and ETPs, across 9,500 exchange listings from over 200 providers on 50 stock exchanges. ETFGI leverages extensive industry experience, unparalleled industry contacts and rigorous analysis to deliver proprietary research on the global ETF and ETP industry.
We provide services to both new and experienced institutional and professional investors interested in using ETFs and ETPs and better understanding the industry, product, regulatory and company specific data points.
We publish industry data and statistics and identify trends within the industry on a global, regional and country basis and offer a comprehensive and searchable global database which covers over 4,700 ETFs and ETPs, exceeding 9500 stock exchange listings on assets of in excess of US$1.7 trillion, from over 200 providers on 55 exchanges and are available to assist you with any research of a custom nature.
ETFGI also offers a full range of consulting services covering the spectrum of the exchange traded exposure universe from data and analytics to product structuring, due diligence on products and service providers, from distribution and capital market challenges to governance and the regulatory environment.
ETFGI partner Deborah Fuhr is one of the industry's leading commentators and an early identifier of the significance of the evolving industry over seventeen years ago. Together with our trusted industry partners and our partnership associates, ETFGI offers expertise on all aspects of ETFs and other exchange traded exposures.
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