Indxx has launched the Disruptive Technologies Index and licensed it to exchange-traded fund (ETF) provider Alps Advisors as the underlying benchmark for its Disruptive Technologies ETF.

The index is based on companies that enter traditional markets with new digital forms of production and distribution, are likely to disrupt an existing market and value network, displace established market leading companies, products and alliances and increasingly gain market share. The index company has identified 10 broad sub-themes as most relevant to the disruptive technologies theme, including 3D printing, clean energy and smart grid, cloud computing, cybersecurity, data and analytics, fintech, healthcare innovation, internet of things, mobile payments, and robotics and artificial intelligence.

Companies that generate more than 50% of their revenue from these sub-themes are eligible for inclusion in the index, with Indxx selecting the 10 largest by market cap from each sub-theme to form the final index.

Wisdomtree rollsout new China income ETFs

Wisdomtree Investments has has debuted two new funds. The ICBCCS S&P China 500 Fund, which tracks the S&P China 500 Index, adds to the company's line-up of international ETFs, including emerging markets funds.

The fund is heavily allocated to three sectors: technology, financial services and consumer discretionary. Those groups combine for 68.5% of the new ETF's weight. Tencent and Alibaba Group provide 16.6% of the new ETF's roster. The top 10 holdings combine for nearly 35% of the weight of the ETF, which charges 0.55% per year, or US$55 on a $10,000 investment.

In addition, the ETF provider has launched the Balanced Income Fund, which looks to hold an income-oriented portfolio of 60% stocks and 40% fixed income, and tracks the Wisdomtree Balanced Income Index, which 'is designed to provide a balanced exposure to global equities and fixed income and is comprised of ETFs'. The ETFs in the index, which may include Wisdomtree ETFs and non-Wisdomtree ETFs, must trade on a US stock exchange and are reconstituted and rebalanced annually.

The ETF provider's High Dividend Fund DHS and the Barclays Yield Enhanced US Aggregate Bond Fund AGGY combine to make up almost 40% of the new ETF's weight. Nine of the ETF's 11 holdings are other Wisdomtree ETFs. The charge is 0.35% per year, or $35 on a $10,000 investment.

Tase debuts long dated TA-35 index derivatives

The Tel Aviv Stock Exchange (Tase) has approved the launch of series of long dated TA-35 Index derivatives, a move aimed at enhancing liquidity and will provide a solution to a real existing need for the various market players. 

The long dated TA-35 Index derivatives will be for 15 months. New series of options and future contracts will be opened in March, June, September and December for 15 months. At any point in time, there will be seven monthly series being traded - three series for each of the three coming months and another four series for six, nine, 12 and 15 months. This will be in addition to the weekly options that will continue to be opened, as is the current practice. 

The opening of derivative series for 15 months will facilitate, at any point in time, trading in derivatives having a term to expiry of at least a year and will allow positions to be rolled-over, also for periods of a year. TAase has identified several parties that might trade in long dated derivatives. Firstly, activity that currently takes place on the OTC market might shift to Tase. Next, there is a likelihood of 'regulatory hedging' in respect to the insurance companies' nostro portfolios, as part of the implementation of the Solvency II Regulations. Moreover, the launch of the new options might encourage the entry of new players who prefer to trade in 'longer' derivatives than those currently in existence. 

The launch of the long-dated options requires technical arrangements to be made and these will be implemented in stages.

Global ETP assets increased by US$1 trillion in 2017

Assets invested in ETFs/ETPs listed globally increased by US$1.05 trillion during the first 10 months of 2017, to reach a new record high of $4.60 trillion at the end of October, according to ETFGI.

According to the company's October 2017 Global ETF and ETP industry insights report, assets invested in ETFs and ETPs grew by 29.6% year-to-date, the greatest annual increase since 2009 when markets recovered following the 2008 financial crisis, and an increase of 2.9% on the previous record of $4.47 trillion set in September 2017.

For the first 10 months of 2017, ETFs and ETPs listed globally saw record net inflows of $539bn, 37.9% more than net inflows for the whole of 2016, and almost double that of the same period in the previous year's record of $287bn set in October 2015; October 2017 also marked the 45th consecutive month of net inflows into ETFs/ETPs, with $55.6bn gathered during the month. The majority of these flows can be attributed to the top 20 ETFs by net new assets, which collectively gathered $200.9bn during 2017. The iShares Core S&P 500 ETF on its own accounted for net inflows of $27.2bn.

Assets invested in actively-managed ETPs reach $21.9bn record in 2017

Assets invested in actively-managed ETFs/ETPs listed globally increased by a record $21.9bn during the first 10 months of 2017, to reach a new high of $65.8bn at the end of October, eclipsing the previous record increase of $9.40bn for the whole of 2016, according to ETFGI's October 2017 Active ETF and ETP industry insights report

The increase of 49.9%, from $43.9bn at the end of 2016 to a record high of $65.8bn at the end of October 2017, also represents the greatest proportional annual increase in assets since 2012. Year-to-date, through end of October 2017, ETFs and ETPs listed in the US saw record net inflows of $13bn; 91% more than net inflows for the whole of 2016, and more than double that of the previous YTD record for the same period of $5bn set in October 2015.

October 2017 also marked the 20st consecutive month of net inflows into U.S.-listed ETFs/ETPs, with nearly $2bn gathered during the month. The majority of these flows can be attributed to the top 20 ETFs by net new assets, which collectively gathered $10.7b during 2017. The Pimco Enhanced Short Maturity Strategy Fund accounted for net inflows of more than $2bn.

Smart beta equity ETPs increased by US$134bn in 2017

Assets invested in smart beta equity ETFs/ETPs listed globally increased by a record US$134bn during the first 10 months of 2017, to reach a new high of $662bn at the end of October, eclipsing the previous record increase of $114billion for the whole of 2013, according to ETFGI's October 2017 smart beta equity ETF and ETP industry insights report.

Year-to-date, through end of October 2017, Smart Beta equity ETFs and ETPs listed globally saw net inflows of $59.7bn; 53% more than net inflows for the same period during 2016, and 6% more than net inflows for the whole of 2016. October 2017 also marked the 20th consecutive month of net inflows into smart beta equity ETFs/ETPs, with $5.94bn gathered during the month.

The top 20 ETFs/ETPs account for 49% of global assets. The largest ETF, the Vanguard Value ETF accounts for 5.2% of assets.