Caroline Cakebread

Collateral risk and ETFs: How safe is the parachute?

How safe is the backup parachute of exchange-traded funds (ETFs)? It’s a question asked by the authors of a new research paper. It’s called “The Collateral Risk of ETFs” and is written by European academics Christophe Hurlin, Grègoire Iseli, Christophe Pèrignon, and Stanley C. H. Yeung the latter two of which are at Paris-based HEC. Their findings might surprise regulators calling the industry out over collateral risk - instead of finding gaping holes in the way the risk is managed, the researchers find that ETFs are actually doing pretty well when it comes to collateralization of their products.

  • July 21, 2014 September 13, 2019
  • 11:05

Bitcoin + ETF = Disintermediation wild child

Bitcoins and ETFs are both the offspring of disintermediation - the push to democratize money that is transforming financial services. Like travel agents before them, they aim to erase traditional roles like portfolio managers and banks. But will a bitcoin ETF be a wild child?

  • July 14, 2014 September 13, 2019
  • 10:57

ETF investors celebrate Fourth of July with U.S. equities

In June, $21 billion flowed into U.S. equities via exchange-traded funds (ETFs), bringing total ETF inflows to a high of $36.3 billion. That’s the highest inflows recorded this year—and a sign that the U.S. is making investors very happy. But are we headed for a crash?

  • July 7, 2014 September 13, 2019
  • 09:02

Would Canadian pension funds use ETF strategists?

Exchange-traded fund (ETF) strategists manage investment strategies made up of ETFs, combining active and passive management into a whole new package for investors. Think of it as the Reese’s Peanut Butter Cup of the investment industry (remember that old commercial where a chocolate lover and a peanut butter fan collide and invent a whole new salty-sweet combo?). But what would it take for Canadian pension funds to use them?

  • June 27, 2014 September 13, 2019
  • 12:00

Equities Post-2008—What’s Next?

A fireside chat with T. Rowe Price’s Scott Berg

  • June 25, 2014 September 13, 2019
  • 13:49

Africa: The next frontier for ETFs

Exchange-traded funds (ETFs) are catching on around the world, with increased inflows in North and South America and Europe. One stumbling block that providers have faced, however, has been Africa—particularly South Africa, where a slew of tight regulatory requirements has made it next to impossible for ETFs to gain traction.

  • June 23, 2014 September 13, 2019
  • 10:54

If you like…you’ll love: Bond ETFs versus the real deal

What do bond exchange-traded funds have to do with Netflix, Prison Break and Orange Is the New Black? It's all about making sure your fixed income substitute has the right characteristics to make you happy.

  • June 16, 2014 September 13, 2019
  • 07:00

Why the World Cup might still be a boon for Brazil

The price tag for Brazil’s World Cup hit US$11.5 billion, making it the most expensive in history. There's a silver lining: Goldman Sachs says Brazil's going to win the game and so is its stock market.

  • June 9, 2014 September 13, 2019
  • 07:24

Leveraged-loan ETFs and the big mismatch

Exchange-traded funds based on leveraged loans were hot last year and experienced record inflows. A sharp reversal of that has investors worried about what it could do to the market for the underlying loans.

  • June 2, 2014 September 13, 2019
  • 07:00

Rising rates mean it’s time to rethink low volatility

It might seem strange to hear a low-volatility equity manager say it's a bad time for low-volatility stocks—but that's exactly what we heard over lunch with managers from Swiss-based Unigestion, which recently opened a new Toronto office to serve its Canadian institutional clients.

  • May 27, 2014 September 13, 2019
  • 10:24