ETFs focused on emerging markets are starting to recover from the rout that they suffered last year as investors pulled out billions of dollars from these products; here in Asia
Following the success of index ETFs, ETF firms soon added “synthetic” ETF structures to their product menu. While there are several factors involved in the development of synthetic ETFs
The Mainland ETF growth engine seemed to be stuttering to a halt in the last two years, which was mostly due to the sluggish A-share market amounting to a dead
Despite the post-tapering upsets and volatility of the global financial markets during 2013, and the continuing economic challenges in the global real economy
An important phenomenon that has shaped the investment industry since the 1970s is the rise of passive investing and the separation of alpha and beta
Despite ongoing turbulence across the investment funds industry, the global market for ETFs has enjoyed rapid expansion, with Asia in particular a central focus thanks to its rising middle class.
14 April 2014
One manager at KDB Daewoo Securities, Jesse Tyler Buzzie, indicates that he thinks that the gradual increase seen in Korean institutional participation in the ETF market, which now accounts for 24% of ETF turnover there, "could well be the attraction of access to various investment sectors of global markets at very low transactions costs." While not a solution for every investment objective of the Korean institutional investors, it is increasingly clear that for some, the attraction of ETFs that are managed by leading Korean asset managers using first-tier benchmark companies, such as the MSCI and FTSE, are investment options that are too attractive to pass by.
ETFI Asia magazine – ETFI being an acronym for exchange traded funds and index funds – is published four times a year and is dedicated to providing in-depth coverage of ETFs and the indexing industry in the Asia-Pacific region.
14 April 2014
Following the success of index ETFs, ETF firms soon added “synthetic” ETF structures to their product menu. While there are several factors involved in the development of synthetic ETFs, operational efficiency and reduced tracking error contributed to the philosophy underlying the product’s development. Some of the thinking behind synthetic ETFs is encapsulated in the phrase, “Why own the shares (securities) when the index return can be generated through a total return swap?” In addition, most ETFs that promise “leveraged” returns, e.g. double and triple negative / positive index returns, are synthetic ETFs. These ETFs generally use swap-based structures as it is virtually impossible, and typically not permitted by fund regulations, to generate two-fold (or more) returns using cash-based physical replication ETF structures.
Directed at a very focussed institutional audience in the Asia-Pacific region, ETFI Asia has an average qualified circulation of 5,169 for the 6-month period: March 2013 to Septmeber 2013.