A month after the Securities and Exchange Commission adopted the Investment Company Act rule 22e-4, fund managers are still digesting its implications.
Brown Brothers Harriman shared with Traders Magazine the responses to its 2016 US ETF Investor Survey from 175 financial advisors and institutional investors across the country. This years survey indicated that investors are finding new ways to use ETFs, which is a result of a maturing industry.
US equity ETFs saw record-breaking monthly inflows in November, as the S&P 500 and Russell 2000 indices finished the month up 3.4% and 11% respectively, according to the latest US ETF Flash Flows report from State Street Global Advisors.
In its search for alpha and decrease exposure to single-stock risk, the buy side is increasingly turning to exchange-traded funds.
For years, exchange-traded fund trading volume surged. Now, its slumping too. Nasdaq, NYSE and BATS are now slugging it out with incentives, new order types and a new ETF-focused exchange to resuscitate trading.
The major exchange operators are in pitched battle to win market share and build up volume of trading in exchanged-traded funds.
The Securities and Exchange Commission is set to decide by Dec. 8 whether to approve proposals by the Nasdaq Stock Market and NYSE Arca to permit sponsors of exchange-traded funds to pay broker-dealers for making a market in their securities.
Bank of America Merrill Lynch plans to expand the number of exchange-traded funds traded by its ETF-specific algo. Known as ETF-aXe, the two-year-old algo currently trades 300 ETFs. The new editions could include funds that go beyond just U.S. stocks.
With the current volatility of the equities markets, investors know they need to have exposure to bonds, but they often desire the ease and liquidity of equities, which can be provided by exchange-traded funds. Customers want fixed-income safety and stock convenience, which has driven PIMCO-the don of bonds-into the world of ETFs.