Vaneck Europe has listed a Ucits exchange-traded fund (ETF) for global metal and mining companies on the London Stock Exchange aimed at capitalising from the 'burgeoning electric car industry'. The ETF tracks performance of the Emix Global Mining Constrained Weights Index - a rule-based market capitalisation index. The index offers investors global exposure to metal and mining companies from developed and emerging markets including the UK, Canada, Australia, the US, Brazil, Mexico, South Africa, Russia and China. The ETF also offers a diversified portfolio of mining companies that extract gold, silver, copper and other metals. The index comprises 160 equities in 24 markets.

Goldman dispatches iShares ETF via leveraged soft-protected play

Goldman Sachs has filed a pricing supplement with the US Securities and Exchange Commission a structured note linked to the performance of the iShares MSCI EAFE ETF, and not to that of the MSCI EAFE Index (underlying index) on which the ETF is based.

The ETF follows a strategy of "representative sampling," which means the ETF's holdings are not the same as those of the underlying index, and the performance of the ETF may significantly diverge from that of the index. If the final level on the determination date is greater than the initial ETF level (set on the trade date), the return on notes will be positive and will equal 1.5 times the ETF return, subject to the maximum settlement amount (expected to be between US$1,275 and $1,285 for each $1,000 face amount of notes). If the final ETF level declines by up to 15% from the initial level, investors will receive the face amount of the notes. If the final ETF level declines by more than 15% from the initial level, the return will be negative one on one with the index fall plus 15%. The estimated value on the strike date is expected to be between $960 and $990 per $1,000 face amount.

ETF nomenclature misleading, SEC

The $3.5 trillion US ETF market is operating under more than 300 individually issued exemptive orders, and although exemptive orders are great for flexibility, they have drawbacks too, according to Dalia Blass, director at the US SEC's Division of Investment Management.

Blass also pointed at ETF nomenclature. 'In the early days, the term "ETF" meant something fairly specific,' said Blass. 'Today, however, the term is used to describe investment companies with a wide range of strategies as well as a number of products that are not investment companies or even funds'. According to Blass, the naming and marketing of these vehicles has sometimes failed to draw clear distinctions, and as 'the term has stretched, investors have had to work harder and harder to identify important differences in risk'. Blass said that the differences in risks, investment strategies and investor protections among ETFs, commodity pools and exchange-traded notes are not clear when the term "ETF" is often used for all three. The US regulator would consider different approaches to exchange traded products (ETP) nomenclature and is seeking feedback from investors, funds and advisers on whether addressing ETP nomenclature would be helpful to investors and the markets.

Europe's ETP inflows lose traction

ETFs and ETPs listed in Europe gathered $1.46 billion in net inflows during March 2018, the lowest monthly amount since June 2015 when net inflows were US$882.99m, according to ETFGI. Year-to-date net inflows for 2018 reached $27.40 billion at the end of March which is less than the $35.37 billion in net inflows at this point last year.

At the end of March 2018, the European ETF/ETP industry had 2,302 ETFs/ETPs, with 7,515 listings, assets of $825.76 billion, from 65 providers on 26 exchanges in 22 countries. March 2018 also marked the 42nd consecutive month of net inflows into ETFs/ETPs listed in Europe, according to ETFGI. The $1.46 billion gathered during the month was 87.13% less than the $11.36 billion in net inflows during this month last year. The majority of net new inflows can be attributed to the top 20 ETFs by net new assets, which collectively gathered $14.02 billion during 2018. The iShares US Treasury Bond 7-10-year Ucits ETF accounted for net inflows of $1.30 billion. Equity ETFs/ETPs listed in Europe gathered net inflows of $1.53 billion during March, bringing net inflows for 2018 to $22.6 billion, which is slightly greater than the $21.2 billion in net inflows at this point last year. Fixed income ETFs and ETPs recorded net outflows of $380.4m, bringing net inflows for 2018 to $3.4 billion, which is less than the $7.8 billion in net inflows at this point last year.

New ETF to track companies supporting US veterans and active service members

Pacer ETFs has launched the Pacer Military Times Best Employers ETF (Vets) as the latest addition to its lineup. The ETF seeks to track the total return performance of the Military Times Best for Vets Index before fees and expenses. The Index is calculated by Wilshire and owned and developed by VETS Indexes. Pacer will also donate 10% of its management fees earned from Vets to veteran-related charities.

Companies included in Vets have been named in the Best for Vets list for three consecutive years, have a market cap of at least $200m and meet a certain liquidity threshold. This is the company's tenth ETF. Its previous ETFs include the Pacer Trendpilot Series, which uses a trend-following strategy which aims to participate in the market when it is trending up, maintain some exposure during short-term market declines and exit the market when it is trending down, and the Pacer Cash Cows Index Series, which employs a passive rules-based security selection process and seeks to identify top companies in an index universe based on their free cashflow yield.