Global ETF Monitor – 20170717

Europe

iShares has gained an edge in the European market, with the listing of a new low volatility ETF in Germany, the iShares Edge S&P 500 Minimum Volatility UCITS ETF (IS31). IS31 tracks the S&P 500 Minimum Volatility Index at low cost, and hedges across euros and US dollars. ‘Edge’ is a branding device BlackRock uses to indicate the ETFs are not plain vanilla. 

German banking titan Commerzbank will be launching a new note into Germany on Wednesday, the Commerzbank ETN -15x BUNDF Daily Short (X0CW). X0CW tracks an index built in-house by Commerzbank, which reflects fifteen times the inverse daily movement of the Euro-Bund Futures. The high leverage suggests the fund is targeting traders and speculators not long-term investors.     

Americas

ProShares has launched three new funds in the US, the ProShares UltraShort S&P500 (SDS), the ProShares Ultra VIX Short-Term Futures ETF (UVXY) and the ProShares VIX Short-Term Futures ETF(VIXY). SDS will allow investors to short the S&P 500, an ETF which defies the financial wisdom of the moment as the S&P has been a one way bet for so many investors the past decade. VIXY and UVXY both track the VIX Short-Term Futures Index, but UVXY offers twice the bang for the buck, with 200 percent exposure. 

It was common knowledge that Source had left the US. But since the company’s acquisition by Invesco, a turnaround seems in the winds. Source has listed a new energy ETF in the United States, SRRCF which tracks the S&P Select Sector Capped 20% (Energy) Net Total Return Index. The capped index allows no stock to take up more than 20 percent of the index, giving investors guaranteed diversification. 

Asia

Samsung has listed two new energy trackers in Korea (530033, 530032), which target energy infrastructure. 530033 tracks the Alerian Energy Infrastructure index, which is an index made up of North American energy companies involved in ‘midstream activities’ like transportation and storage. 530032 tracks the Cushing 30 MLP Index – which is a very similar index, and made up for 30 North American energy companies involved in midstream activities. 

Taiwan’s ETF market got two funds larger, with Cathay listing two new low volatility ETFs, the 00701 and 00702. 00701 tracks the TIP TAIEX+ Low Volatility Select 30 Index, which picks 30 Taiwanese companies based on their low volatility. 00702 tracks an index more familiar to western investors, the S&P 500 Low Volatility High Dividend Index.