Industry Updates

ETF Stream’s 10 most read stories in H1

George Geddes

a group of blue and white striped socks

The first six month of 2020 has seen markets suffer as a result of the coronavirus pandemic spreading across the globe bringing industries to a standstill.

Reflecting on these eventETF Stream reviews the most read stories from the first half of 2020 including the price of oil's fall into negative territory, the implication coronavirus had on markets and the launch of ETF Stream's Industry 30.

1. BetaShares changes investment strategy for oil ETF amid collapse in prices

Following the price of oil tumbling to -$40 per barrel, BetaShares made the decision to adjust the investment strategy for its oil ETC (OOO) from using one month oil futures to three month oil futures.

In an attempt to avoid OOO becoming worthless, BetaShares moved away from tracking its benchmark temporarily but assured the fund will remain strongly correlated to the oil spot price.

2. Vanguard’s ETF investors are buying the dip

March was just the beginning of the downward trending markets however, investors at the time saw the dip in ETF prices as being prime opportunity to buy.

Vanguard’s S&P 500 ETF saw net inflows every day for two weeks despite markets experiencing extreme volatility.

3. WisdomTree to terminate two leveraged oil ETPs after triggering threshold

In tandem with oil ETCs facing their investment strategies being altered, WisdomTree saw two of its leveraged oil ETCs forced into closure as a result of breaching the severe overnight gap event threshold.

Due to the leveraged nature of the products, the overnight performances were -99% which meant the swap provider issued an official termination notice.

4. Index funds have gone nowhere in 21 years without dividends

The panic selling experienced by European index funds during the volatile periods in March highlighted their underwhelming performances if you exclude dividends.

For many of the largest indices in Europe, such as the FTSE 100 index and the DAX Kursindex, there is negligible net growth over the past 20 years.

5. Five fund buyers reveal their favourite emerging market ETFs

Coming into 2020, there were several factors that made emerging markets an interesting investment exposure.

From China A-shares, socially responsible strategies or just core exposures, five investors picked their favourite emerging market ETFs and explained why.

6. S&P Dow Jones Indices postpones quarterly equity indices rebalance

Leading index provider S&P Dow Jones Indices postponed its quarterly rebalance in March as a result of the market volatility caused by coronavirus.

The decision was made following numerous circuit breakers being triggered and exchange closures from index performances.

7. Assessing the long-term impact of coronavirus

Reviewing the damages caused by the coronavirus turmoil, many market participants are surprised by both the positives and negatives of the crisis and how markets reacted.

However, the full consequences of the crisis have continued into the second half of the year and forecasters have their say on what the economy might look like.

8. ETF Stream unveils Industry 30 2020

Despite much of the news focusing on the market's reaction to coronavirus, one positive was the release of the 2020 edition of ETF Stream’s Industry 30.

Highlighting the 30 most influential people in Europe’s ETF industry, the Industry 30 reflects on the efforts made by those driving the growth and innovation in the market.

9. ETF investors get caught on wrong side of oil market collapse

In tandem with the oil prices fall to historic lows, several oil ETCs saw significant inflows for the period.

The fall in demand for the commodity whose production cannot be shut down and paused was a bad combination for investors.

10. Credit Suisse AM re-enters European ETF market with triple launch

Credit Suisse Asset Management re-entered the European ETF market after seven years out of the game when it sold its ETF business to BlackRock.

The return included three ETFs which bolstered the firm’s index fund range which had €123bn assets under management (AUM) at the time.

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