Liquid Alternatives
Liquid Alternative investments have emerged over the past decade as one of the fastest-growing areas within asset management. As pensions, endowments, foundations and other institutional investors have long benefited from Alternative Investments within their portfolios, Liquid Alternatives enable investors to have access to alternative investment strategies in fund structures that provide daily liquidity, full transparency, low investment minimums and other key attributes for investors. DailyAlts is your source for the most up-to-the-minute news, commentary and analysis on the global market for Liquid Alternatives.
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Apollo Global Management is planning a $12 billion direct lending and alternative credit fund. The firm will utilize these funds to provide $1 billion in loans to various companies. Abu Dhabi fund Mubadala backs this Investment along with other investors involved in the project. Direct lending will allow investors to invest in high-quality businesses and…
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Liquid Alternatives: ETF Short-sellers Making Money Off The Panic Must Pay More
There has been a sudden jump in the demand to borrow ETFs for purposes of shorting. Investors may be looking to short ETFs for various reasons, but one major factor is the sudden spike in the cost of options. Options are widely used for hedging strategies but have become expensive because of the intense, coronavirus induced volatility in the market in March. As a result, borrowing costs of ETFs have, on average, shot up 40% according to a report by data provider S3 Partners.
Liquid Alternatives: ETFs Cushioned an Insane Market
Financial markets faced a multitude of headwinds as never before.
ETFs, the innovative financial products that sprung from the calamitous financial crisis of 2008, have played a calming role in the recent market mayhem.
Liquid Alternatives: Innovator’s Defined Outcome ETFs – Prepare For Market Volatility
Investors have plowed in $3.2 trillion into hedge funds and $1 trillion into equity-linked structured products, investments that have limited downside protection, according to Bruce Bond, Co-Founder, and CEO, Innovator ETFs. (ETF Trends) Instead, they could consider an alternative investment strategy that could protect them from a loss shock up to a known buffer value on the one side, but also let them participate in the gains from a rally (up to a cap) on the other.
Liquid Alternatives: Bank of Japan Beefs Up ETF Purchase Strategy; You Could Too
The Japanese central bank took a slew of monetary steps in response to the global coronavirus pandemic.
At an emergency meeting, Monday the Bank of Japan kept interest rates unchanged at a negative (-) 10 bps, but doubled its annual ETF buying plan to ¥12 trillion from ¥6 trillion. It also introduced a new lending program to smooth funding for firms.
Liquid Alternatives: Despite Meltdown, YTD Net Inflows to Global ETFs/ETPs Are Higher Than Last Year
Year to date net inflows into global ETFs/ETPs as at end February’20 are USD 98.68 billion, versus USD 61.57 billion as of end February’19.
ETFs and ETPs listed globally gathered US$31.52 billion in net inflows in February, according to ETFGI’s February 2020 Global ETFs and ETPs industry landscape insights report.
Liquid Alternatives: The Black Swan ETF, Holding Up as It was Meant To
By every definition, the coronavirus pandemic is a ‘black swan’ event, one that is unpredictable or unforeseen but with extreme consequences.
The Amplify Black Swan Growth & Treasury Core ETF (NYSEARCA: SWAN) is designed for times like these. The coronavirus epidemic has sent global stock markets into a tailspin on fears of a massive recession.
Liquid Alternatives: Emerging Market Economies (And ETFs) To Benefit From The Oil Crash
One man’s meat is another man’s poison goes the saying. While oil-producing countries and US-listed oil companies have borne the brunt of the massive slide in crude oil prices recently, certain emerging market countries will, however, benefit.
Liquid Alternatives: What the Proposed New Regulations on Leveraged ETFs Mean for Investors
The SEC’s proposed regulations have triggered widespread opposition, particularly those relating to leveraged (geared) ETFs.
The public has until March 24, 2020, to submit its comments on the proposals.
Liquid Alternatives: The HDIV ETF – Artificial Intelligence Picks High Dividend Stocks With Upside
Qraft Technologies, a South Korean artificial intelligence firm, just launched its third ETF in the US. The Qraft AI Enhanced US High Dividend ETF (HDIV) targets high dividend US stocks selected through a proprietary AI system. Qraft Technologies has brought the ETF to market in collaboration with Exchange Traded Concepts, a white label ETF provider.
Liquid Alts: IMF Warns About ETF Liquidation
Call it the great bust of passive investing?
The IMF warned Wednesday that regulators and authorities need to start watching asset managers and ETFs over the threat that they could start liquidating assets. The IMF wrote this in a blog post on Wednesday.
Liquid Alternatives: ETFs to Trade Market Volatility
Investors can use these ETFs to trade VIX, the “fear gauge” of the market.
Savvy investors can take advantage of market panics that stem from black swan events like the coronavirus. The fallout from the virus outbreak on oil prices, and thereafter on global equity markets, was on full display on Monday. The CBOE VIX index spiraled higher.
Liquid Alternatives: NUSI – A Safe-Haven ETF for Risk Managed Income
Nationwide’s recently launched Nationwide Risk-Managed Income ETF (NYSEARCA: NUSI) helps investors find safe-haven fixed-income assets in the face of steadily declining Treasury yields. In the relentless rush to earn yield, investors may be turning to alternatives such as high dividend stocks, REITs, emerging market debt, high-yield bonds, preferred stock, and MLPs. However, investors may not be considering the attendant risks of such investments, according to Jonathan Molchan, Executive Director and Portfolio Manager, Harvest Volatility Management. He warns that these could come with risks attached such as interest rate, duration, inflation, commodity exposure, and leverage.
Liquid Alternatives: Oil Demand to Plummet; ETFs Likely to Take it on the Chin
The coronavirus has hobbled travel, supply chains, and global economic growth forecasts. Crude oil will pay the price. Norway’s biggest independent energy consultancy Rystad Energy predicted on Thursday that The coronavirus outbreak will cut growth in global crude oil demand by more than half this year compared to earlier forecasts.
Liquid Alternatives: Ultimus’ Clients Are Among the First to Market With ETFs Under Rule 6c-11
So long as they comply with the SEC’s conditionalities, asset managers can launch a new ETF. Rule 6c-11 became effective on December 23, 2019, and fund administrators Ultimus Fund Solutions have been quick off the mark. Ultimus helped two of its adviser clients launch active transparent exchange-traded funds (ETFs) in accordance with new Rule 6c-11.
Liquid Alternatives: Recharge Your Portfolio With This Battery-Themed ETF
WisdomTree has launched a battery solutions-themed ETF that trades on the London Stock Exchange.
The WisdomTree Battery Solutions UCITS ETF (LON: CHRG) comes with a total expense ratio (TER) of 0.40%.
The fund tracks the price and net dividend performance, before fees and expenses, of the WisdomTree Battery Solutions Index. This index was designed in collaboration with energy experts Wood Mackenzie.
Liquid Alternatives: Investors Flock To Gold In Risk-Off Move; Goldman Predicts $1,800
Gold has earned a year-to-date return of 3.83%. Goldman Sachs (NYSE: GS) thinks gold could touch $1,800/oz in the near future given the confluence of macroeconomic factors that currently erodes risk-on investments. Meanwhile, investors have lapped up gold, and gold ETFs, in a move smacking of global risk aversion.
Liquid Alternatives: Now, An AI-Enabled ETF That Delivers Investors’ Five Favorite Things
Merlyn.AI Corporation (MAI), the Palo Alto-based ETF provider that previously introduced the WIZ ETF, has now launched the Merlyn.AI Tactical Growth and Income ETF (Nasdaq: SNUG) on the Nasdaq exchange. The ETF is a conservative investment that seeks to improve returns in both bull and bear markets. The ETF tracks the MAI Tactical Growth and Income Index.
Liquid Alternatives: Invesco Launches New Sterling Corporate Bond ETF With ESG
Invesco, the fund manager with $1.23 trillion in assets under management as of December 31, 2019, has launched in Europe a new, first-of-its-kind, sterling-denominated, corporate bond ETF with an ESG tilt. The Invesco GBP Corporate Bond ESG UCITS ETF (IGBE) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.10%.
Liquid Alternatives: Advisers Sitting on Trillions of Dollars of Potential ETF Investments – Report
A survey by ETF Trends and ETF Database titled “How Financial Advisors Buy ETFs” found that more than half (or about 63%) of advisors said that the percentage of ETFs in their clients’ portfolios were below 40%.
Liquid Alternatives: CI First Asset Opens the TSX on February 20
To mark the occasion of the listing of three liquid alternative ETFs, Rohit Mehta, Executive Vice-President, CI Financial, and President, CI First Asset ETFs, and Graham Mackenzie, Head, ETFs, and Structured Products, Toronto Stock Exchange, opened the market on February 20.
Liquid Alternatives: Franklin Templeton Buys Legg Mason in $6.5B Deal
Franklin Templeton will become a $1.5 trillion behemoth after its acquisition, announced Tuesday, of rival Legg Mason for $6.5 billion including debt. It will pay $50 per share of Legg Mason in cash – a premium of $10 over the latter’s Monday closing price. In addition, it will assume $2 billion of the latter’s debt.
Liquid Alternatives: American Century May Unveil the Very First Non-Transparent ETFs
Two American Century funds may be the first to test waters as “actively managed” ETFs.
Having received the SEC’s approval for its final key filing, Cboe BZX Exchange, Inc. is close to launching its proposed actively managed ETFs, also known as “non-transparent” ETFs. The two ETFs, based on Precidian’s ActiveShares model, will disclose their holdings on a quarterly schedule, instead of on a daily basis as other ETFs.
Liquid Alternatives: New CP ETF Is a Defensive High Yield Fixed Income Diversifier
CP ETFS is a fund house that specializes in managing downside risk with the ability to participate in market upside with a low-correlation diversifier strategy. This strategy reduces the impact of advisor and client emotion on portfolio performance. CP ETFs has launched CP High Yield Trend ETF (HYTR), which alternates exposure between the US high yield corporate market and three-seven year US Treasuries.
Liquid Alternatives: Lyxor Launches High Yield Bond ETFs With ESG Exposure
Lyxor launches three new ETFs for investors looking to invest in high yield bonds with a sustainability angle.
Lyxor’s new ETFs have a total expense ratio (TER) of 0.25%, the lowest among ETFs tracking High Yield indices with ESG filters.