{"id":43664,"date":"2015-07-23T01:12:45","date_gmt":"2015-07-22T23:12:45","guid":{"rendered":"http:\/\/beta.next-finance.net\/news\/european-smart-beta-etf-market-trends\/"},"modified":"2015-07-23T01:12:45","modified_gmt":"2015-07-22T23:12:45","slug":"european-smart-beta-etf-market-trends","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/news\/european-smart-beta-etf-market-trends\/","title":{"rendered":"European Smart Beta ETF Market Trends"},"content":{"rendered":"<p>European Smart beta ETF market flows are still positive in the<br \/>\nsecond quarter of 2015, but growth has decelerated compared<br \/>\nto Q1\u00a02015. NET NEW ASSETS (NNA) year to date (30\/06\/2015)<br \/>\namounted to EUR\u00a02.3\u00a0billion, i.e. 60% of the 2014 NNA within the<br \/>\nfirst half of the year. Total assets under management are up 41%<br \/>\ncompared to the end of 2014, reaching EUR\u00a010.9\u00a0billion. Year to<br \/>\ndate, ETF flows are still sustained on all three smart beta categories<br \/>\neven though Q2 2015 have been impacted by increasing market<br \/>\nvolatility.<\/p>\n<p><strong>Definition of smart beta ETFs:<\/strong> smart beta denotes rules-based investment strategies<br \/>\nthat do not rely on market capitalisation. We have used 3\u00a0sub-segments to classify all<br \/>\nthe products that are included in this category. First, there are <strong>risk based strategies<\/strong><br \/>\nbased on volatilities and other quantitative methods. Secondly, there are <strong>fundamental<br \/>\nstrategies<\/strong> based on the economic footprint of a firm or state \u2013 through accountant ratios<br \/>\nor macro-economic measures, respectively. Lastly, there are <strong>factor strategies<\/strong>, which<br \/>\ninclude homogeneous ranges of single-factor products and multifactor products designed<br \/>\npurposely for factor allocation.<\/p>\n<p><strong>Q2\u00a02015 was the smallest quarter in terms of inflows for smart beta ETFs over the<br \/>\nspan of one year, in line with the overall European ETF market flow trends in May<br \/>\nand June, which were highly impacted by the increasing volatility on all markets.<\/strong><br \/>\n<quote>In<br \/>\nthis context, fundamental ETFs continued to be favored with still some inflows on<br \/>\nthe fundamentally build benchmark Nikkei\u00a0400 and also significant inflows on the Quality<br \/>\nincome indices.<\/quote><br \/>\n The latter offer attractive dividend yields and defensive profiles against a<br \/>\nbackdrop of heightened uncertainties and low interest rates. For the first time, <strong>risk-based<br \/>\nETFs<\/strong> have started to see some outflows, in particular on Min Vol\/Low Vol ETFs. <strong>In the<br \/>\nfactor allocation space<\/strong>, investors have also been rather cautious in May and June.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>European Smart beta ETF market flows are still positive in the second quarter of 2015, but growth has decelerated compared to Q1\u00a02015. NET NEW ASSETS (NNA) year to date (30\/06\/2015) amounted to EUR\u00a02.3\u00a0billion, i.e. 60% of the 2014 NNA within the first half of the year. Total assets under management are up 41% compared to the end of 2014, reaching EUR\u00a010.9\u00a0billion.<\/p>\n","protected":false},"author":1,"featured_media":43662,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1470],"tags":[1655,1718,1651,2007,1662,2234,2068,1672,2118],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/43664"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=43664"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/43664\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/43662"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=43664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=43664"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=43664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}