Fixed income and debt investment vehicles linked to credit and inflation will see the biggest increase in demand from investors over the next 24 months, according to new research from Tabula Investment Management. Investors highlighted investment grade credit with 42% of those interviewed expecting demand to increase compared to 10% who think it will fall.

The survey also found that some 48% of institutional investors and wealth managers interviewed expect demand for inflation strategies to increase between now and 2020, and just 2% anticipate a fall. The findings from Tabula, a new European fixed income ETF provider, reveal other fixed income/debt strategies that investors expect to see a net increase in demand over the next two years including high yield credit, emerging market debt and asset backed securities. Demand for government bonds will remain relatively flat.

Increased demand for investment grade credit reflects investors' continued search for yield, and difference between implied and realised default rates, according to the research. 'The implied default rates are the yields on the securities which are there to compensate investors for the credit risk of the issuer,' it said. 'Today's yields far outstrip the actual (realised) default rates over the last forty years.'

Tabula Investment Management commissioned PollRight to conduct research with professional investors including asset managers, pension funds, insurance companies, private banks and wealth managers. Fifty-five investors took part in the survey in April 2018.

Invest In Vol: US RIA adds Europe-linked vol leverage ETNs
Invest In Vol, a US volatility specialist Registered Investment Advisor (RIA) has expanded its Balanced Volatility Strategy with two new exchange-traded products (ETPs), the Velocity Shares 1X Long VStoxx Futures exchange-traded note (ETN) and the Velocity Shares 1X Daily Inverse VStoxx Futures ETN. Both products offer investors exposure to the VStoxx - or Eurostoxx 50 Volatility Index - often referred to as the 'European Vix'.

The Balanced Volatility Strategy harvests the risk premium observed in volatility products using an actively managed portfolio of six volatility linked ETNs and funds. The strategy uses three separate volatility investment strategies to benefit from a diversity in trading approach, product design, and volatility markets. Returns come from three separate but related sources: the premium hedgers pay over realized volatility for equity index; options (Volatility Risk Premium); and index options (Futures Risk Premium).

The Balanced Volatility Strategy applies three independent approaches to collect volatility risk and futures risk premia including absolute measures of volatility futures' contango and backwardation; momentum changes in volatility and futures risk premia; and trends observed in the implied and realized volatility of the S&P 500 index.

Huobi debuts crypto-basket ETF

Singapore-based cryptocurrency exchange Huobi has launched a crypto-based exchange-traded fund (ETF), aimed at providing retail investors with exposure to the cryptocurrency ecosystem by investing in a basket of cryptos, instead of going with one.

The new index product - dubbed HB10 - is already open for subscription, and can only be purchased with cryptocurrencies such as bitcoin (BTC), ethereum (ETH), tether (USDT), and Huobi tokens (HT), but not fiat. The ETF tracks the Huobi's 10 index, which comprises the 10 largest cryptocurrencies in terms of market capitalization and liquidity traded on the Huobi Pro platform. Every crypto listed the platform traded against crypto currency USDT may qualify to be included on the index.

Amundi ETF adds tracker linked to Bloomberg Barclays MSCI ESG play

Amundi ETF has launch the Amundi Index US Corp SRI - Ucits ETF DR, an ETF designed to provide diversified USD corporate bond exposure while applying environmental, social and governance (ESG) selection filters.

The new physical ETF, offered at ongoing charges of only 0.16%, tracks the Bloomberg Barclays MSCI Corporate SRI index. The tracker fund will give investors access to US dollar-denominated investment grade corporate bonds, excluding issuers involved in alcohol, tobacco, military weapons, gambling, adult entertainment, GMO and nuclear power. The asset manager said the launch is a direct response to the growing demand for ESG criteria integration from investors who, along with being more ethically conscious, understand that ESG factors could potentially impact a company's financial performance.

Assets invested in active ETPs listed globally set new record

Assets invested in active ETFs and ETPs listed globally reached a record high of US$86bn at the end of April 2018; an increase in assets of US$3.11bn from the previous record of US$82.97bn set at the end of March 2018, according to research and consultancy firm ETFGI.

In April 2018, actively-managed ETFs/ETPs listed globally saw net inflows of US$2.75bn. According to the report, active fixed income ETFs performed well this month, with assets invested in the Pimco Enhanced Short Maturity Strategy Fund reaching a new record high of US$8.99bn.

YTD net inflows in active ETFs and ETPs listed globally reached US$12.12bn which represents 78.24% more than the US$6.8bn in net inflows at this point last year. Globally-listed active equity ETPs gathered net inflows of US$279m during April, growing net inflows for 2018 to US$3.53bn, which is more than three times more than at this point last year. Similarly, active fixed income ETPs gathered net inflows of US$1.95bn in April, bringing net inflows for 2018 to US$7.10bn. 

Investors have tended to invest in active fixed income ETFs in April 2018 with Pimco US Dollar Short Maturity ETF (MINT US) and iShares Short Maturity Bond ETF (NEAR CN) capturing most of the flows.