Global stock markets fell yet coming to an end?Information management company is rampant buying ETF business

According to foreign media reported February 20, Korean Mirae Asset Global Investment Corporation (MiraeAssetGlobalInvestments) and the seventeenth largest US ETF () publisher GlobalX signed a merger agreement, the former 4.$ 8.8 billion acquisition of 100% stake in the latter。  In early February, US stocks plummeted due to the occurrence of panic down, there are forecasts that this wave of decline may not yet coming to an end。The market believes that the stock falls, the product can be reversed using the ETF to hedge risk。  Global ETF spree if the acquisition ultimately approved, Mirae Asset Global Investment Company's global ETF business will be even more powerful。  Public information display, the company's Mirae Asset Global Investments manages $ 400 billion in assets, including $ 30 billion in ETF assets。Prior to the acquisition of US GlobalX, Mirae Asset Global Investments company also elsewhere in the world on the ETF business acquisitions, including a vision of Canada, Australia and Asia TigerETF BetaShares etc.。  Why Korean Mirae Asset Global Investors keen to acquire ETF business?  Some experts said the large asset management companies, can use the ETF to the rapid expansion of assets under management。For ordinary investors in the stock market turmoil, investors can use a reverse ETF to hedge risk。  To BlackRock, for example, one of the world's largest asset management company, at the end of 2017, total assets under management reached 600.$ 2.9 trillion, BlackRock's ETF business is the world's largest。By the end of last year, BlackRock's ETF assets reached 1.$ 7.5 trillion, by the end of 2016, an increase of 35.7%, exceeding the growth rate of the overall assets of the company。In mid-2017, a total of $ 245 billion into a subsidiary of the ETF, accounting for 67% of the company's total capital inflows。Market analysts said the asset management company BlackRock can scale based on the size of the $ 5 trillion in late September 2016, the rapid expansion of the $ 1 trillion, mainly due to the company's timely introduction to the market of ETF product lines。  Mirae Asset Global Head of ETF TaeyongLee said, "This acquisition is a milestone event in the future business development of global ETF assets, the aid GlobalX platform, Mirae Asset Global Investments may be global ETF business in Asia and the US company successful ETF connect, create a more robust ETF trading platform。"By the end of 1, GlobalX total managed assets of $ 10.2 billion, the company has 52 product lines。The two sides are expected to reach a fair acquisition in the third quarter, we are still awaiting the approval of a third party。  The rapid development of full potential ETF exchange-traded index funds in recent years, why get the favor of many financial institutions,?  This investment vehicle, commonly also known as exchange-traded funds (ExchangeTradedFunds, referred to as the "ETF"), is an exchange-traded fund shares variable open-end fund,。ETF is a special type of open-end fund, which combines the operational characteristics of closed-end funds and open-end funds, investors can either purchase the fund management company or redemption of fund shares, at the same time, they can be as closed-end funds in the same at market prices on the secondary market trading in ETF shares。  Over the past 10 years, with the proportion of the ETF as the representative of the global passive investment strategy of the Fund to obtain a steady increase。In the United States, the proportion of passive investments from the stock market in mid-2006 the ratio is less than 20%, and rose rapidly to over 40% in 2016, investors are increasingly attracted to cheap funds, ETF fund management fees only other funds one-tenth, so sought after by investors。Many studies have shown that the level will have an impact fund performance expense ratio of the fund, the lower the fee, fund performance is often better performance。The market believes, ETF future there is still much room for development。  Whether the stock market is up or down, ETF has its own living space。Have to admit, the US stock market over the past eight years of the bull market to the development of the ETF provides significant opportunities to grow, more and more investors to choose low-cost index-tracking ETF type.2017 Annual Global ETF scale has reached 4.$ 4 trillion, US stocks overall market value of about 20 trillion。  When the stock market rises, ETF can track forward stock index futures index, industry index fund to invest in, these ETF funds exponential replication method, according to the constituent stocks of the benchmark weights in the target index weights to build indexed portfolios, and in accordance with goal-stock index and their weights are adjusted accordingly changes。  When the global stock market volatility fell, ETF also has living space。Some market participants believe that the stock falls, the product can be reversed using the ETF to hedge risk。For example, issuers of Hong Kong 'Hang Seng Index daily reverse (-1X) product, "and when the performance of the index showing an inverse relationship, the index fell 1%, the price of the product will rise 1%。If investors bearish on the future of the stock market, even if does not hold shares or stock products, but also to invest in such products to hedge。  In early February this year, the global stock market panic down US stocks slump occurred in the past week, despite a strong rebound in the US market, to some extent, ease the market sentiment, but there are forecasts that the global stock market decline may not yet coming to an end, in March the Federal Reserve to raise interest rates still the string, stock market volatility instability factors still exist。  Data show that in the past week, although the stock market rebound, but the US ETF market still reported a $ 6 billion of the phenomenon。Wherein P 500ETF effluent 48.$ 1.9 billion, the Nasdaq 100ETF (QQQ) net outflow of 16.$ 4.8 billion had been restored vitality of the United States necessities XLP sector fund another large outflow of funds this week 8.$ 700 million, the size has shrunk by as much as 10.84%。  In the context of uncertainty, ETF derivatives will undoubtedly become another product outside the hedge。Samsung Asset Management ETF Business Sales Director Xiao Xiaoting that, even if do not want to participate in stock investment, investors can also choose to invest in hedge commodity or foreign exchange markets, such as the S & P Goldman Sachs (264.89, -2.73 -1.02%) crude oil futures ETF products or ER Hang Seng Index futures RMB foreign exchange ETF and other products, these products investment target for the crude oil, gold, foreign exchange, etc.。Currently, there's A-share market has a tracking ETF, index and industry, but also gold ETF, bonds and currency ETF type, these products can hedge against stock declines。(Original title: Global stock markets fell yet coming to an end?Asset management companies are buying spree one kind of fund business) (Editor: DF318)