Eq: Large Cap

Rules. Rules. Okay, right; not on your top 10 list. Understood. But since the, well, ETF rule, hit the scene in 2019, ETFs have, as they say, come a long way, according to etfdb.com.

In fact, those that have proved their mettle are paying dividends by being particularly attractive to investors. Okay, but how do they pull that off? The three year milestone’s one way. During that period, a strategy to put together assets, establish a track record and strut their worth can blossom. Investors – with fixed income engaging a return – could mull the addition of a core fixed income ETF on the verge of hitting its own three year mark.

This year, escalating inflation and interest rates – not to mention the burgeoning risk of a recession – have done a number on the way in which exchange traded funds are performing, according to the globeandmail.com.

“We’re likely going to see a dichotomy of looking for safety while seeking income,” says Danielle LeClair, director of manager research at Morningstar Canada in Toronto.

Seem to you as if ESG’s lost a bit of its zest? You could just about be granted a mulligan for feeling that way, according to ey.com.

Then again, you might believe that, among some leaders, the rapid momentum’s taking five.

Here’s the bottom line: when any landscape altering thought process toward business like ESG surfaces, it can find its apex faster than a speeding bullet. Looking at the bigger picture, however, the mission critical relevance of sustainability and ESG in modern business and the corporate juice it sparked last season should be sent to separate corners.

A survey commissioned by Ernst & Young gauging the priority business placed on sustainability and ESG initiatives confirmed what many figured: ESG remains in the crosshairs of American execs. It also appears to pay dividends, heading every agenda.     

During the past year, investment decisions based on ESG factors hasn’t exactly been looked upon fondly, according to webforum.org.

Factors such as the Ukraine invasion and inflation have fueled the negativity.

No matter; sustainability investing decidedly will remain a thing, abetting the segue to a future that’s not only greener, but struts greater sustainability.

According to research from data analytics company Coalition Greenwich, the influence of some corporate bond ETFs on their underlying holdings has increased, as the electronification of fixed-income trading has created an upheaval in how bonds are traded. The firm found that the trading volumes of 12 of the largest corporate bond ETFs rose from 18% of the turnover in their constituent investment grade and high-yield bonds in 2021 to 23% in 2022. In addition, the proportion was even more marked when Coalition Greenwich narrowed its focus to the five high-yield ETFs in its study. In this case, it found average daily notional volume soared from 30.5% of the underlying bonds in 2021 to 47.4%. What this means is that ETFs accounted for nearly half of the daily traded value of the underlying bonds. Kevin McPartland, head of market structure and technology research at Coalition Greenwich stated, “In the last three years everything has changed, all bond market participants now traded at least some of their volume electronically, which was transforming the market.” The increasing share of volume traded is an indication of a revolution in which corporate bonds are traded. Fixed-income ETFs have helped to increase the electronification of the corporate bond market, which has resulted in better price discovery, liquidity, and tighter spreads.


Finsum:According to research from data analytics company Coalition Greenwich,the trading volumes of some of the largest corporate bond ETFs are rising and accounting for a higher daily traded value of the underlying bonds.

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