VantagePoint Software, an artificial intelligence trading software provider, has launched two Leveraged ETF Sectors aimed at capturing trends in standard exchange-traded funds (ETFs) but with a 2x to 3x multiplication factor through their leveraged counterpart.

VantagePoint new Leveraged ETF Sectors include one bull and one bear. Together, these new sectors provide over 80 leveraged ETFs all forecasted with an accuracy up to 86%. In addition to doubling or tripling profits, the bear leveraged ETF will allow traders to capitalize on the down markets.

Samsung offers exposure to China's internet market

Samsung Asset Management (Hong Kong) has launched the first ETF tracking Chinese large-cap internet companies listed in the Mainland and overseas. The Samsung CSI China Dragon Internet ETF is designed to mimic the performance of the CSI Global China Internet Index, a benchmark for large-cap Chinese internet stocks.

The new fund invests in the 30 largest internet companies listed in China, Hong Kong and the US for more than three months, or with an initial public offering that exceeds US$10bn. They include internet giants Alibaba Group Holding Limited and Tencent Holdings. The new launch expands Samsung (HK)'s stable of ETF and leveraged and inverse (L&I) products in Hong Kong to six. The company introduced its first ETF in the city in February 2015. Samsung (HK), a subsidiary of South Korean asset management giant Samsung Asset Management, currently has HK$1 billion ($128 million) of ETF assets under management

World Gold Council and SSGA offer low-cost gold play

The World Gold Council, the market development organization for the gold industry, and State Street Global Advisors, have launched the SPDR Gold MiniShares Trust (GLDM), an exchange-traded products offering 'the lowest available total expense ratio among all gold', with a net and gross expense ratio of 0.18 percent. GLDM will be initially listed at a per-share trading price of 1/100th of an ounce of gold, as represented by the LBMA (London Bullion Market Association) Gold Price PM (USD).

With the launch of GLDM, the World Gold Council and State Street Global Advisors have added a third product to their range of gold ETFs, all of which are backed by physical gold. In November 2004, the World Gold Council and State Street Global Advisors launched SPDR Gold Shares (GLD), the first US-traded gold ETF and the first US-listed ETF backed by a physical asset. GLD attracted more than US$1 billion in assets in its first three trading days and has since remained the largest gold ETF in the market with approximately US$35bn in total net assets.

Amplify ETFs launches tactical growth play

Amplify ETFs announces has launched the Amplify EASI Tactical Growth ETF, an index-based ETF that seeks to participate in the upside of high quality growth companies during upward trending equity markets while tactically rotating to fixed income in downward trending equity markets. EASI seeks investment results that generally correspond to the EASI Tactical Growth Index.

The initial universe for the equity allocation consists of all securities listed on the New York Stock Exchange (NYSE) and Nasdaq. Constituents are then narrowed by excluding all securities with an average daily volume in the last 50 days of 300,000 or more shares. All remaining companies are scored once a month in two major areas: price performance and fundamentals. The final equity portfolio will invest at least 80% of its total assets in 33-50 holdings, in accordance with the index.

The determination of the index being weighted 100% to equities or 100% to fixed income is called the "Long-Term Tactical Allocation Signal." It measures and compares the monthly changes in the price of the equity components using the trailing twelve-month exponential moving average.

US ETP inflows recover

Exchange-traded products (ETPs) listed in the US gathered US$31.58bn net inflows during May 2018, according to research firm ETFGI. Year-to-date net inflows into US listed ETFs/ETPs reached US$124.8 billion at the end of May which is significantly less than the US$200.8 billion compared to this point last year.

At the end of May 2018, the US ETF industry had 1,889 ETFs, assets of US$3.4 trillion, from 120 providers on three exchanges. At the end of May 2018, the US ETF/ETP industry had 2,146 ETFs/ETPs, assets of US$3.5 trillion, from 139 providers on three exchanges. Overall the assets invested in ETFs/ETPs listed in the US increased by 2.12% during May 2018. The increase of 2.12%, from US$3.4 trillion at the end of April 2018 to US$3.5 trillion at the end of May, also represents the highest monthly growth in assets since January 2018, which saw a monthly increase of 6.38% from US$3.4 trillion to US$3.6 trillion.

May 2018 marked the second consecutive month of net inflows in ETFs/ETPs listed in the US, which saw US$31.5 billion in net inflows. At this point last year, year-to-date net inflows were 37.85% higher, with US$200.8 billion gathered during the first five months of 2017. The majority of these flows can be attributed to the top 20 ETFs by net inflows, which collectively have gathered US$83.5 billion during 2018. The iShares Core MSCI EAFE ETF (IEFA US) on its own accounted for net inflows of US$17.1 billion.

Equity ETFs/ETPs listed in the US saw net inflows of US$23.9 billion during May, bringing net inflows for 2018 to US$77.6 billion, which is less than the US$140.2 billion in net inflows at this point last year. Fixed income ETFs and ETPs gathered net inflows of US$5.6 billion, growing net inflows for 2018 to US$32 billion, which is less than the US$51 billion in net inflows at this point last year.

Horizons boost leverage/inverse offering with new Marijuana trackers

Horizons ETF Management Canada Inc. has filed preliminary documents with regulators to bring to market three new ETFs on the Toronto Stock Exchange that will focus on leveraging exposure to the cannabis sector.

The three new funds will be in line with the existing BetaPro fund lineup, and have a management fee of 1.15%. The funds will include: BetaPro Canadian Marijuana Companies 2x Daily Bull ETF (HMJU), BetaPro Canadian Marijuana Companies -2x Daily Bear ETF (HMJD) and BetaPro Canadian Marijuana Companies Inverse ETF (HMJI). With 25 leveraged funds on its shelf Horizons ETFs is the only provider of leveraged ETFs in Canada.