Welcome to the September 10th edition of the Free version of the ETFGI Weekly Newsletter covering news on products, industry and event news.
Industry News
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Globally, 8 new ETFs/ETPs were listed and there were 12 new cross-listings during the week of September 3rd
New ETF filings
New ETF filings are not included in the free version. To access to them please subscribe to the premium one, so you could stay on top of new products in the ETF/ETP space before they launch.
[REITs]
Q2 hedge fund letters, conference, scoops etc
United States
News
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- First Trust RBA Quality Income ETF changed name, investment objective, ticker symbol and management fee
- On September 6, 2018, First Trust RBA Quality Income ETF (QINC) changed its investment objective to seek investment results that correspond generally to the price and yield of an index called the Dorsey Wright Momentum Plus Dividend Yield The New Index is a rules-based equity index designed to track the overall performance of the 50 stocks with the highest dividend yield comprising the NASDAQ US Large Mid Index that still maintain high levels of “relative strength”.
- The ETF changed its name to First Trust Dorsey Wright Momentum & Dividend ETF and reduced its annual management fee from 70% to 0.60%. The Fund now lists and trades its shares under the new ticker symbol “DDIV.”
- All changes were effective on September 6,
State Street Global Advisors reduced fees on four SPDR ETFs
- State Street Global Advisors announced reduced expense ratios for the SPDR Bloomberg Barclays International Treasury Bond ETF (BWX), SPDR Nuveen S&P High Yield Municipal Bond ETF (HYMB), SPDR SSGA Income Allocation ETF (INKM) and SPDR SSGA Multi-Asset Real Return ETF (RLY).
- Effective September 4, 2018, the expense ratios of the four funds, which have approximately $1.89 billion in assets, will be lowered as follows:
VanEck lowered expense ratio on VanEck Vectors Green Bond ETF (GRNB)
- VanEck announced that it has lowered the expense ratio on VanEck Vectors Green Bond ETF (GRNB). Effective September 1, the expense cap for GRNB was reduced from 40% to 0.30%.
- The ETF seeks to track the S&P Green Bond Select Index, which is comprised of labeled green bonds that are issued to finance environmentally friendly projects, and includes bonds issued by supranational, government, and corporate issuers globally in multiple
- Link to the news’ source
UBS suspended further sales of ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN
- UBS announced that it has suspended further sales from inventory of its outstanding ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN (MORL). This suspension will remain in effect until further notice from UBS
- As previously announced on October 8, 2015, UBS AG does not intend to issue any new notes of this ETN, which is part of a series of UBS AG debt securities designated as “Medium-Term Notes, Series ” As a result, following this announcement, UBS does not intend to make further sales of previously issued but unsold notes of this ETN or notes of this ETN that UBS Securities LLC may acquire in the future. This ETN will continue to trade on the NYSE Arca, subject to further notice.
- Link to the news’ source
Opinion: This is one way Donald Trump has been good for the environment
- Given longtime climate change denier Trump’s almost abnormal affinity for coal and seeming total aversion to environmental regulations, it seems improbable, if not impossible, that the current administration would create positive momentum for eco-friendly causes and companies.
- Since the November 2016 election, an increasing number of investors seem to be sticking up for the environment, and for social and governance issues, creating a “green wave” of assets into both responsible investment and ESG (“Environmental, Social and Governance”) mutual funds and In 2015, there was an anemic $650 million increase in ESG ETF assets under management (AUM), according to figures from JPMorgan Chase—an amount eclipsed by the rise in AUM in just three months post-election in a mix of new money and price gains.
- Link to the news’ source
Who’s afraid of the ETF bubble? (Everybody.)
- Regulators have anxiously watched assets in exchange traded funds swell to record levels following the financial crisis, but they have so far uncovered little support for theories that the products could be responsible for the next market
- Globally, the ETF industry is now responsible for some $5.1tn in assets – up from $774bn at the end of That explosive growth caught the attention of financial watchdogs, as critics of the vehicles alleged that a mismatch between ETFs and their underlying assets could lead to havoc if investors were to try to sell all at once during a severe market downturn.
- Link to the news’ source
Canada
News
World’s first marijuana ETF reached $1 billion in assets
- Horizons ETFs Management (Canada) announced that the Horizons Marijuana Life Sciences Index ETF (HMMJ) has reached CAD $1 billion in assets under
- HMMJ is the first and largest ETF in the world to offer direct exposure to an investable index of North American-listed companies with business activities in the marijuana The ETF reached its $1 billion milestone in a relatively short amount of time – 16 months.
- Link to the news’ source
Europe
News
Joint Committee Report on the results of the monitoring exercise on ‘automation in financial advice’
- ESMA, EBA and EIOPA September 2018 Joint Committee Report on the results of the monitoring exercise on ‘automation in financial advice ’ has been
- Through this Report, the institution said that the risks and benefits of this phenomenon, which had previously been identified by the ESAs have largely been confirmed by national competent authorities (NCAs) and remain
- The ESAs concluded that given the overall importance of the topic, and the emergence of some ongoing changes to business models, a new monitoring exercise will be conducted if and when the development of the market and market risks warrant this
- Link to the news’ source
MVIS and Amun launched the Amun Crypto Basket Index
- MV Index Solutions (MVIS), and Amun, an established London-based financial technology company, have launched the Amun Crypto Basket Index (ticker: HODL5), a digital assets index designed to accurately track the top crypto
- The Amun Crypto Basket Index tracks the performance of the top five crypto assets in terms of market cap and liquidity, providing diversified exposure to the crypto space while using its proprietary methodology to effectively manage the volatility associated with less liquid or smaller crypto
- Link to the news’ source
iSTOXX Europe ESG Climate Awareness Select 50 Index licensed to Morgan Stanley
- STOXX , the operator of Deutsche Börse Group’s index business and a global provider of innovative and tradable index concepts, has licensed the iSTOXX Europe ESG Climate Awareness Select 50 Index to Morgan Stanley for the issuance of structured products.
- The new index combines sustainability criteria with a high dividend yield and low The respective (environmental, social, governance) ESG and climate data is compiled by CDP (climate) and Sustainalytics (ESG). This is the first time STOXX combines data sources from these two providers in a single index.
- The iSTOXX Europe ESG Climate Awareness Select 50 Index is designed to combine ESG and climate considerations in a single basket, addressing a growing demand from investors to incorporate climate change awareness within a broader ESG factor The selection of stocks within the index is based on data provided by leaders in the field, CDP and Sustainalytics.
- Link to the news’ source
Middle East
News
MSCI and Tadawul to launch joint Saudi Arabia tradeable index for domestic and international investors
- MSCI announced the signing of an agreement with the Saudi Stock Exchange (Tadawul), the largest stock exchange in the region in terms of market capitalization and turnover, to create a joint tradeable index that can serve as the basis for investment instruments including derivatives and ETFs.
- In June 2018, MSCI announced the classification of the Saudi Arabian equity market as an Emerging Market as part of their annual global market classification The Index will be based on the broader MSCI Saudi Arabia index series that will be part of the MSCI Emerging Markets Index. The joint tradeable index will be available in Q4 2018.
- Link to the news’ source
Article by ETFGI
