Click here to read Morningstar's round-up of the week's key economy news and data that moved equity and bond markets.
S&P Ratings Bloodbath: Implications for ETPs
On the
weekend, S&P downgraded nine eurozone countries--including the loss of
the prized AAA rating for France and Austria. The effects of the
downgrade will likely reverberate in financial markets for some time to
come. For more on the implications of the downgrade for ETPs, read
Morningstar ETF Analyst Jose Garcia-Zarate's recent
article.
db X-trackers Lists 8 New ETFs on the Borsa Italiana
At the
end of last week, db X-trackers listed 8 new exchange-traded commodities
(ETCs) on the Borsa Italiana tracking energy and precious metal
commodities using leverage or inverse strategies. Specifically, db
x-trackers now offers leveraged and inverse exposure to WTI crude oil,
natural gas, and silver while providing only leveraged exposure to Brent
crude oil and gold.
As always, it is vital to understand that because the leverage ratio on these leveraged and inverse products is reset on a daily basis, their performance will likely diverge from their stated leverage ratio (2X, -2X, etc.) over holding periods lasting longer than a single trading day. This divergence will be especially pronounced during periods of market volatility. The details for the new suite of ETFs from db X-trackers are listed at the end of the article.
Lyxor Expands ETF Range on the Deutsche Börse and the Borsa Italiana
This
week, Lyxor launched four new ETFs on the Deutsche Börse tracking
industrial metals and agricultural commodity futures. Two of the Lyxor
ETFs offer long exposure to both agriculture and livestock and
industrial metals via the S&P GSCI 3-month forward indices. The
remaining two Lyxor ETFs give investors their first opportunity to track
the inverse performance of both the agricultural and livestock sector
and the industrial metals sector.
Also this week, Lyxor listed two ETFs on the Borsa Italiana tracking Indonesian and Thai equities. The details for the new ETFs and listings from Lyxor are listed at the end of the article.
iShares Launches US Aggregate Bond ETF on Deutsche Börse
On
Monday, iShares launched a new ETF tracking the US short-term aggregate
bond market on the Deutsche Börse. The ETF will offer investors the
chance to participate in the performance of Treasuries, securitised
bonds, government, and corporate bonds with residual maturities of one
year. The details for the new ETF from iShares are listed at the end of
the article.
Ossiam Launches Minimum Variance ETF in London
On Thursday,
Ossiam launched a new ETF tracking the FTSE 100 index using a minimum
variance strategy. The new ETF uses Ossiam's in-house index methodology
with hopes to achieve 30% less volatility than the FTSE 100. Ossiam uses
both a liquidity filter and an optimisation process to achieve this
portfolio objective and replicates its index synthetically. The details
for the new Ossiam ETF are listed below.
Click here to view the details of all the ETFs mentioned above.
