Vanguardhar expanderat till Italien med notering av ett antal aktie- och ränteinkomstfonder på Borsa Italiana. Vanguard listar sin första ETF på Borsa Italiana, men det är egentligen inte bara en utan 17 stycken som fondbolaget listar på samma gång.
Vanguard grundades 1975 om den enkla men revolutionära idén att onder bör förvaltas i sina kunders eget intresse. Idag hanterar Vanguard USD5,1 biljoner på uppdrag av mer än 20 miljoner investerare världen över, per 30 november 2018, och erbjuder en rad index- och aktiva fonder och ETF.
Hjälpa investerare att uppnå sina mål
Sean Hagerty, Europas chefschef hos Vanguard, säger: ”Vårt uppdrag är att hjälpa investerare att uppnå sina mål genom att vara en av världens högsta värdeleverantörer av investeringsprodukter och tjänster. Vi vill fortsätta minska kostnader och komplexitet för investerare, som vi gjort globalt i över 40 år. Det är därför vi är väldigt mycket glada att ta med vårt värdeförslag till Italien. ”
Simone Rosti, Italienchef hos Vanguard, tillägger: ”I dag markerar vi en annan milstolpe för Vanguard när vi listar våra produkter på Borsa Italiana. Börshandlade fonder blir alltmer populära, eftersom de gör det möjligt för investerare att bygga i stort sett diversifierade, billiga portföljer. Vi ser speciellt fram emot att samarbeta med våra kunder, bland annat förvaltare, banker, försäkringsbolag och pensionsförvaltare samt professionella kunder som hanterar produkter och besparingar för och för kundernas räkning – för att ge dem den bästa chansen för investeringssucces. ”
ETFerna är:
Vanguard S&P 500 UCITS ETF
Vanguard FTSE 100 UCITS ETF
Vanguard FTSE All-World High Dividend Yield UCITS ETF
Vanguard FTSE All-World UCITS ETF
Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF
Vanguard FTSE Developed Europe UCITS ETF
Vanguard FTSE Developed World UCITS ETF
Vanguard FTSE Emerging Markets UCITS ETF
Vanguard FTSE Japan UCITS ETF
Vanguard USD Corporate 1-3 year Bond UCITS ETF
Vanguard USD Corporate Bond UCITS ETF
Vanguard USD Emerging Markets Government Bond UCITS ETF
Vanguard USD Treasury Bond UCITS ETF
Vanguard EUR Corporate Bond UCITS ETF
Vanguard EUR Eurozone Government Bond UCITS ETF
Vanguard Global Liquidity Factor UCITS ETF
Vanguard Global Minimum Volatility UCITS ETF
Vanguard Global Momentum Factor UCITS ETF
Vanguard Global Value Factor UCITS ETF
Constructing a portfolio with a mix of domestic and international assets has never been easier due to the wide range of Exchange-Traded Products (ETPs) that are now available to investors on exchange. However, when investing in ETPs, it’s important to realise that you could be exposed to currency risk, as currency movements can have a significant impact on ETP returns.
In this article, we’ll explain how currencies in ETPs work and look at how currency movements can affect ETP returns.
Multiple currencies
If you’re interested in investing in ETPs, you may have noticed that there are often different currencies associated with the same ETP.
For example, an ETP tracking the S&P 500 – an index that is quoted in US Dollars – could be traded on the London Stock Exchange in Pound Sterling. The reason that ETPs are often traded in multiple currencies and on different exchanges across the world is that it provides investors with the opportunity to buy ETPs efficiently through their own local exchanges. While this is an advantage for investors, multiple currencies also introduce currency risk.
Understanding the risk
When it comes to understanding ETP currency risk, the first step is to determine where currency exchange rates can have an impact on the product valuation, and thus on performance calculation.
Investor’s currency: in what currency do you calculate your overall performance?
Trading currency: what currency does the ETP trades in?
NAV currency: what currency is the ETP’s NAV (Net Asset Value) calculated in?
Underlying components trading currencies: what is the trading currency of the portfolio constituents?
Assuming an exact same composition between the underlying index and the ETP, when comparing the underlying index performance with the performance experienced by investing in the ETP, you must realise that:
The constituents trading currencies is the same in both the index and the ETP
No currency impact here at this level
The ETP’s NAV and trading currency, as well as the investor’s currency can be different from the index calculation currency
Can have currency impact on performance calculation
As an example, a EUR investor wants to buy a 3x short 10-year US Treasuries ETP on Borsa Italiana. She buys an ETP trading in EUR, while its NAV would be computed in USD, and the underlying instrument (10-year US Treasuries) trading currency would also be in USD.
Once you know the currencies that you are dealing with, you can analyse how currency movements may affect performance. This investor would then be penalised by USD depreciation as it would erode the EUR value of the ETP. On the other hand, she would benefit from USD appreciation.
Here’s an example of how currency movements could impact the returns from a 3x short 10-year US Treasuries ETP traded on the Borsa Italiana.
Currency impact on performance: An example
In Figure 1 below, we present a hypothetical example that shows the daily movement of the ETP’s NAV in US Dollars, as well as the daily change in the EURUSD exchange rate. The NAV currency of the ETP is the US Dollar, but as it’s listed on Borsa Italiana, it’s traded in Euros.
Figure 1. ETP NAV movements and EURUSD fluctuations
Source: WisdomTree, illustrative example. You cannot invest in an index. Historical performance is not an indication of future results and any investments may go down in value.
The table shows that the Euro NAV price of the ETP is affected by both the change in the ETP’s NAV price in US Dollars and the EURUSD exchange rate.
Over the four-day period, the NAV in US Dollars was unchanged overall, i.e. 0.0% performance in USD. However, over the period the USD appreciated from 1.15 to 1.10 USD per Euro, so an investor who purchased the ETP in Euros would have seen an overall return of 4.5% (€90.9 end value vs. €87.0 start value), as a result of the change in the exchange rate.
Impact of currency movements over time
Figure 2 below shows how currency movements can have a significant cumulative effect over time, looking at the performance of that same 3x short 10-year US Treasuries ETP.
Figure 2. Currency moves can have a significant impact on returns: 2017 example
Source: WisdomTree, Bloomberg. You cannot invest in an index. Historical performance is not an indication of future results and any investments may go down in value.
As you can see, the cumulative NAV return in US Dollars was -5.5% over the period. But a significant depreciation of the USD vs. the Euro resulted in a NAV return in Euros of -15.0%, a considerable 9.5% return difference.
Summary
Whenever investing, currency is likely going to have an impact on your portfolio’s performance, unless underlying, NAV, trading and reporting currencies are all the same. Understanding where this impact lies is important, as it allows you to better understand the potential risks arising from currency exchange movements, which can significantly support or dampen returns.
DISCLAIMER
The content on this document is issued by WisdomTree UK Ltd (“WTUK”), which is authorised and regulated by the Financial Conduct Authority (“FCA”). Our Conflicts of Interest Policy and Inventory are available on request.
For professional clients only. Past performance is not a reliable indicator of future performance. Any historical performance included on this document may be based on back testing. Back testing is the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such strategy would have been. Back tested performance is purely hypothetical and is provided on this document solely for informational purposes. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. The value of any investment may be affected by exchange rate movements. Any decision to invest should be based on the information contained in the appropriate prospectus and after seeking independent investment, tax and legal advice. These products may not be available in your market or suitable for you. The content of this document does not constitute investment advice nor an offer for sale nor a solicitation of an offer to buy any product or make any investment.
The Evolution of Disruptive Technology ETFs Battery Tech, E-commerce & Pharma Breakthrough
As we enter 2018 disruption is becoming more mainstream in society, a trend we believe to be a potential engine of growth for investors.
ETF Securities is expanding its Future Present range of disruptive technology ETFs with three new products designed to capture exposure to growing technology sectors:
Offers exposure to companies that are engaged in the R&D and/or manufacturing of drugs that combat rare disease.
These new disruptive technology ETFs are available today on the London Stock Exchange with listings on Deutsche Borse and Borsa Italiana expected to follow soon.
To find out more about our Future Present products visit our website:
For more information contact:
Catarina Donat Marques
ETF Securities (UK) Limited
T +44 20 7448 4386
E catarina.donatmarques@etfsecurities.com
Important information:
This communication has been issued and approved by ETF Securities (UK) Limited which is authorised and regulated by the United Kingdom Financial Conduct Authority.
This communication is only targeted at qualified or professional investors.
The fund(s) discussed in this communication are issued by GO UCITS ETF Solutions Plc (the ”Company”). The Company is an open-ended investment company with variable capital having segregated liability between its sub-funds and is organised under the laws of Ireland. The Company is regulated, and has been authorised as a UCITS by the Central Bank of Ireland pursuant to the European Communities (Undertaking for Collective Investment in Transferable Securities) Regulations, 2003 and is structured as an umbrella company with multiple sub-funds.
Investments may go up or down in value and you may lose some or all of the amount invested. Past performance is not necessarily a guide to future performance. The information contained in this communication is neither an offer for sale nor a solicitation of an offer to buy securities nor shall any securities be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities law of such jurisdiction. This communication should not be used as the basis for any investment decision. You should consult an independent investment adviser prior to making any investment in order to determine its suitability to your circumstances.
The ETFS Battery Value-Chain GO UCITS ETF (the “Fund”) is not sponsored, promoted, sold or supported by Solactive AG.
Nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Index and/or Index trade mark or the Index price, at any time or in any other respect. The Solactive Battery Value-Chain Index (the “Index”) is calculated and published by Solactive AG. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards the Company, Solactive AG has no obligation to point out errors in the Index to third parties including, but not limited to, investors and/or financial intermediaries of the Fund.
Solactive AG does not guarantee the accuracy and/or the completeness of the Index or any related data, and shall not have any liability for any errors, omissions or interruptions therein. Neither publication of the Index by Solactive AG, nor the licensing of the Index or Index trade mark, for the purpose of use in connection with the Fund, constitutes a recommendation by Solactive AG to invest capital in said Fund nor does it, in any way, represent an assurance or opinion of Solactive AG with regard to any investment in this Fund. In no event shall Solactive AG have any liability for any lost profits or indirect, punitive, special or consequential damages or losses, even if notified of the possibility thereof.
The ETFS Pharma Breakthrough GO UCITS ETF (the “Fund”) is not sponsored, promoted, sold or supported by Solactive AG.
Nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Index and/or Index trade mark or the Index price, at any time or in any other respect. The Solactive Pharma Breakthrough Value Index (the “Index”) is calculated and published by Solactive AG. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards the Company, Solactive AG has no obligation to point out errors in the Index to third parties including, but not limited to, investors and/or financial intermediaries of the Fund.
Solactive AG does not guarantee the accuracy and/or the completeness of the Index or any related data, and shall not have any liability for any errors, omissions or interruptions therein. Neither publication of the Index by Solactive AG, nor the licensing of the Index or Index trade mark, for the purpose of use in connection with the Fund, constitutes a recommendation by Solactive AG to invest capital in said Fund nor does it, in any way, represent an assurance or opinion of Solactive AG with regard to any investment in this Fund. In no event shall Solactive AG have any liability for any lost profits or indirect, punitive, special or consequential damages or losses, even if notified of the possibility thereof.
The ETFS Ecommerce Logistics GO UCITS ETF (the “Fund”) is not sponsored, promoted, sold or supported by Solactive AG.
Nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Index and/or Index trade mark or the Index price, at any time or in any other respect. The Solactive eCommerce Logistics Index Net Total Return (the “Index”) is calculated and published by Solactive AG. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards the Company, Solactive AG has no obligation to point out errors in the Index to third parties including, but not limited to, investors and/or financial intermediaries of the Fund.
Solactive AG does not guarantee the accuracy and/or the completeness of the Index or any related data, and shall not have any liability for any errors, omissions or interruptions therein. Neither publication of the Index by Solactive AG, nor the licensing of the Index or Index trade mark, for the purpose of use in connection with the Fund, constitutes a recommendation by Solactive AG to invest capital in said Fund nor does it, in any way, represent an assurance or opinion of Solactive AG with regard to any investment in this Fund. In no event shall Solactive AG have any liability for any lost profits or indirect, punitive, special or consequential damages or losses, even if notified of the possibility thereof.
Telephone calls may be recorded for training and monitoring purposes.
BOOST lanserar hävstångs-ETFer i Tyskland. Brittiska ETP-leverantören BOOST som nyligen köptes upp av WisdomTree, ger sig nu in på den tyska marknaden också. BOOST lanserar fyra hävstångs-ETFer på Deutsche Börses Xetra i Tyskland, och kommer även att lansera korta ETFer i samband med detta. Hävstången på de produkter som lanseras kommer i detta skede att vara 3 x, och underliggande kommer att vara DAX.
BOOST kan därmed erbjuda sina kunde tillgång till ännu ett av världens största index. Att det sker på både lång- och kortsidan, samtidigt som BOOST erbjuder även hävstångsprodukter beror antagligen på den ökade efterfrågan, det senaste halvåret har efterfrågan på hävstångsprodukter i Europa ökat med 3,5 procent, varav BOOST redan har en betydande andel. Företaget har en AUM på rekordhöga 120 miljarder USD och en månatlig handelsvolym på cirka 150 MUSD.
Totalt sett har BOOST därmed 68 produkter lanserade på Londonbörsen, Borsa Italiana och Xetra. En av förklaringarna till denna utgivares framgång är att bolaget har arbetat hårt för att utveckla sitt utbildningsmaterial för att hjälpa investerare att bättre förstå strukturen, risker och fördelar med S & L ETP/ETF: er.
Att valet föll på just Tyskland är inte heller så konstigt där det finns en väl fungerande marknad för både ETFer och ETPer. Landets aktiemarknad har även ett högt beta vilket gör att det finns förutsättningar att snabbt bli uppmärksammad av de investerare som söker investeringar med potential till hög avkastning.
BOOST lanserar Italiens första 3x ETPer på amerikanska aktier
BOOST lanserar Italiens första 3x ETPer på amerikanska aktier. Den brittiska förvaltaren BOOST meddelande nyligen att bolaget har lanserat nya produkter på Borsa Italiana i Milano vid sidan av de ETPer som BOOST listat på LSE, London Stock Exchange. Denna gång har BOOST lanserar Italiens första 3x ETPer på amerikanska aktier, men också den första -2x ETC på silver och naturgas, det vill säga hävstångscertifikat som skall replikera den dubbla negativa utvecklingen på dessa två råvaror.
Denna omgång listar BOOST sex nya ETC på Borsa Italiana, vilket gör att förvaltaren nu har 20 stycken ETCer listade i Italien. Den nya produkterna listas nedan.
[TABLE=13]
Samtidigt listar BOOST de första 3x Short och 3x Leverage (S&L) ETPs kopplade till amerikanska aktier Borsa Italiana.
De underliggande amerikanska aktieindexen är Russell 1000 och QQQ, det vill säga Nasdaq100.
Boost Natural Gas 3x Leverage Daily ETP (3NGL) har stigit med 125 procent på tre månader, medan Boost NASDAQ 100 3x Leverage Daily ETP (QQQ3) visade en uppgång om 136 procent under 2013.
Efterfrågan på transparenta, likvida och robusta S & L ETP har ökat under de senaste åren när globala S & L ETP tillgångar stigit till en rekordnivå på $ 56 miljarder (BOOST Short and Leverage ETF/ETP Global Flows Report, 31 Jan 2014). Det har skett en ökning av efterfrågan sedan oktober 2013 volatilitet på de globala aktiemarknaderna har ökat, med BOOST s AUM har också stigit till en rekordnivå på cirka 78 MUSD en ökning med cirka 200 under de senaste fyra månaderna. BOOST mest populära index är FTSE MIB och naturgas med 15 MUSD och 19 MUSD av det förvaltade kapitalet, eller cirka 45 MUSD och 55 MUSD, respektive efter att hävstången tagits i beaktande.
Volymerna på BOOSTs plattform har stigit till i genomsnitt 10 miljoner dollar per dag, efter att ha ökat med 2,000% sedan juni 2013. I januari 2014 var den mest populära BOOST ETP BOOST Naturgas 3x Short Daily ETP (3NGS), som omfattade 27 % av BOOSTs totala omsättning. I Italien har Boost fått omkring 17% av marknaden i mindre än fyra månader, med deras börshandlade produkter på naturgas och silver som nu är två av de tre mest handlade ETP i Borsa Italianas ETC segment ETFplus.
Den extrema kylan som påverkar stora delar av USA i år har ökat efterfrågan på bränsle, tog den de amerikanska gasleverantörer med överraskning, vilket gjort de starkt beroende av de befintliga gaslagren för att möta efterfrågan. 2013 ökade BOOST NASDAQ 100 3x Leveraged Daglig ETP (QQQ3) med 136 % (tors 31/12/13) under de senaste 3 månaderna har Boost Naturgas 100 3x Leveraged Daily ETP (3NGL) ökat med 147% (tors 2.20. 14).
