Investors pile into EMD trackers
Emerging market debt ETFs saw record net inflows of $5.8bn over the third quarter globally, according to Blackrock. Total inflows this year have already beaten the previous full-year record set in 2012.
Index trackers
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European investors make switch to smart beta
In the first half of 2016, investors in Europe have poured in $5.7bn (€5.1bn) into smart beta funds as market capitalisation index trackers saw outflows over the period, according to Morningstar data analysed by ETF provider WisdomTree Europe. Brexit could be one of the reasons for the switch.
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US equities see highest inflows since 2014 – BlackRock
Flows into United States equities exchange-trade products reached their highest level since December 2014 in July, according to data from BlackRock.
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Zero-fee funds? Be careful what you wish for
Talk of a 0% fee for passive investing is an enticing prospect, but as core funds become cheaper so groups are encouraged to over-complicate the satellite.
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Sustainable investing – is it time to consider ETFs?
Passive investing has made a rapid rise over the past couple of years. When it comes to sustainable investing, however, index-based funds are still relative newcomers.
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High yield bond ETFs more safety valve than agent of instability – Morningstar
New research by Morningstar challenges assumptions about the threat ETFs pose to the stability of high yield markets, especially during times of crisis.
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Smart beta provider ERI to abolish fixed management fees
In an unprecedented move, ERI Scientific Beta, a provider of smart beta indices that is an offshoot of the EDHEC Risk Institute in France, today announced it will offer its mandate clients the option to only pay performance fees.
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Institutional investors’ smart beta use breaks through 50% barrier
More than half of European institutional investors now use smart beta strategies, according to a study conducted by FTSE Russell. Usage of smart beta remains much more common in Europe than in the US and Asia-Pacific, though it is growing everywhere.
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‘ESMA underestimates closet tracker problem’
The European Securities and Markets Authority’s (Esma) investigation into funds marketing themselves as active but in reality are passive, or ‘closet trackers’, underestimates the extent of the problem, according to UK investment boutique SCM Direct.
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The Great Rotation in reverse – fixed income ETF inflows reach record
European investors have been pouring unprecedented amounts of money into fixed income ETFs this year, while they are taking money out of equity ETFs, according to data from Blackrock.
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Investors sell off as markets trough
European investors did themselves a disservice in February. They sold out of pretty much all asset classes when markets hit (in some cases) multi-year lows before recovering their losses in the past couple of weeks. The outflows mainly hit active funds, as ETFs saw modest net inflows.
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Smart beta is hardly worth the money, says Morningstar
Smart beta ETFs charge investors up to three times as much as plain-vanilla index trackers, according to newly published research by Morningstar. This disparity is not justified by the additional cost of constructing and calculating a ‘smart’ index, and is a severe drag on performance. Therefore, investors should think carefully before investing in a smart…