MEDIA FARING WELL IN ETF LANDSCAPE
Investors are ditching food and beverage sector ETFs, instead favouring media stocks, according to the latest ETF landscape survey from BlackRock. It shows that net outflows are now more than $220m year-to-date. The food and beverage sector came out faring worst with net outflows of $163.4m, followed closely by basic resources with $158.5m. The media sector tops the Stoxx Europe 600 with the largest net inflow of $205.8m. Over the last week, investors have been selling the industrial goods and services sector and buying financials.
NEW PRODUCT FROM MORGAN STANLEY
Cautious optimists looking for a degree of certainty in uncertain markets might like Morgan Stanley’s newest offering. The bank’s FTSE Gilt-Backed Growth Plan Four is a six-year investment that will provide investors with a fixed-return of 8.5 per cent after the first year as long as the FTSE stays flat or improves from its starting level. Investors only risk eroding their initial capital if the FTSE closes 50 per cent below its starting level at maturity. The six-year plan is available as an Isa, Sipp and SSAS, and has a minimum investment of £3,000.
BARCLAYS HAS A RE-LAUNCH
While the Bank of England seems unlikely to hike interest rates any time soon, investors are left with the task of finding dependable income. Barclays Wealth has one solution. It recently re-launched its six-year Regular Income Bond (RIB) plan offering either a yearly income of 5.75 per cent or a monthly payment of 0.4667 per cent, which is like music to the ears of fixed income investors. But, as always, there is a risk. If the FTSE falls below 50 per cent of its starting level at maturity then capital will be lost on a one-to-one basis. It is available as a Sipp and SSAS investment.