ETFs have reached a point where they have started to invest in other ETFs. German issuer ComStage will be listing its Vermogensstrategie UCITS ETF, which translates to "asset strategy", into Switzerland. CBVS is a multi-asset ETF which invests primarily in other ETFs and covers globally equities, bonds and commodities. The fund will be listed in USD (CBVSCHF).
Samsung's Kodex is launching a new covered call ETF in South Korea that tracks the S&P Dividends Aristocrats Covered Call Index. Covered call ETFs like 276970 tend to arise when fund managers are unsatisfied with yields. The way they work is managers buy stocks and sell options allowing other investors to purchase the stocks at a pre-agreed price. Selling options like this helps fund managers produce a flow of income, which can be used to beat an index.
As may be appropriate post-Brexit, Source has listed a new ETF into London, the Source MSCI Europe ex-UK UCITS ETF. The fund tracks the MSCI Europe ex UK Index and will give British investors the chance to invest in a Europe without Britain.
WisdomTree has listed a new factor ETF in Toronto. The WisdomTree Europe Hedged Equity Index ETF will select European equities for price and yield while hedging any currency movements between the Euro and the Canadian dollar.
Today's news from around the webVanguard spends $5m on research
Another advantage of passive management, it turns out, is that research costs are lower. According to the FT, Vanguard spends only $5m a year on research - roughly the same as Jupiter and Aberdeen, active managers that are a fraction of Vanguard's size. The report comes in response to new EU rules that require transparency on research costs.
Now is the time to invest overseas
The time is up for investing in the US; it is time instead for investors to buy funds with international exposure, a prominent ETF strategist has argued. For eight years US markets have outperformed, but that cycle is coming to an end as momentum shifts overseas.