Americas ETP News
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Morgan Stanley-ETF Fund Flows-Preliminary 1Q 2012 ETF Net Cash Flow
April 3, 2012--We estimate that net cash inflows into US-listed ETFs were
$51.6 billion during the first quarter of 2012. This report contains our estimates and analysis of 1Q 2012 ETF flows for the US market. Once official data are released, we will publish our more comprehensive flow analysis
Net inflows into US-listed ETFs were $51.6 billion during 1Q 2012. The 1Q 2012 net cash inflows is the highest quarterly inflow since the fourth quarter of 2009 ($54.6 billion) and is the largest first quarter measured since we began calculating quarterly flows in 2004. US-listed ETF assets are now almost $1.2 trillion, which is up
14% year to date.
The largest net cash inflows went into ETFs tracking fixed income indices. This asset class had net cash inflows of $16.4 billion in 1Q 2012, bringing total assets in Fixed Income ETFs to $203.9 billion (17% of US-listed ETF assets). Emerging Market equity ETFs rebounded from a weak 2011 ($2.1 billion in net outflows) to post the second highest net cash inflows at $11.4 billion in 1Q 2012. Currency ETFs had the largest net cash outflows at $1.4 billion, which is 30% of the segment’s assets as of 3/30/12.
Vanguard’s net cash inflows of $17.3 billion in 1Q 2012 were the largest of any provider. BlackRock had the next highest net cash inflows at $12.2 billion. As of 3/30/11, BlackRock, State Street and Vanguard accounted for over 78% of ETF assets.
There were 76 new ETFs launched and 16 liquidated in the US during 1Q 2012. Of note, BlackRock accounted for 35 of the new launches. As of 3/30/12, there were 34 issuers with 1,226 ETFs. Roughly $9 billion in the total market cap of ETFs is from ETFs issued over the past year. The most successful of these (by total market cap) provide exposure to US stocks exhibiting lower volatility over the prior year and to US dividend-paying stocks.
request report
Source: Morgan Stanley
SEC Seeks Comment on Investor Testing Regarding Target Date Retirement Funds
April 3, 201-- The Securities and Exchange Commission today said it is seeking comment on the results of investor testing regarding target date retirement funds. The Commission will consider the comments before acting on a proposal it issued in 2010 intended to enhance the information provided to individuals investing in such funds
That proposed rule would generally require target date retirement funds to more prominently disclose the fund's asset allocation at the target date. Under the proposal, the disclosure would have to be placed adjacent to the fund's name the first time the name appears in marketing materials. The proposal also would require marketing materials for target date retirement funds to include a table, chart, or graph depicting the fund's asset allocation over time.
view the Proposed Rule, Reopening of Comment Period
Source: SEC.gov
U.S. and Canadian Securities Regulators Discuss Closer Cooperation on Cross-Border Oversight
April 3, 2012--The Securities and Exchange Commission announced Tuesday that its senior staff met last week with counterparts at the Ontario Securities Commission (OSC) to discuss ways to further strengthen cooperation regarding their supervision of financial firms.
At the March 28 meeting, the agencies’ staffs discussed a variety of issues, including their respective approaches to examinations, investor education initiatives, and the status of regulatory reforms in each jurisdiction. The SEC and OSC staffs also discussed additional coordination in the oversight of dually regulated entities, and they agreed to meet regularly to discuss issues of mutual significance regarding supervisory coordination and emerging risks in the cross-border market.
The meeting is part of an effort detailed in a June 2010 memorandum of understanding concerning consultation, cooperation, and the exchange of information regarding the supervision of entities regulated both in the U.S. and Canada.
read more
Source: SEC.gov
Van Eck files with the SEC-Emerging Markets High Yield Bond ETF (HYEM)
April 3, 2012--Van Eck has filed a post-effective amendment, registration statement with the SEC for the Emerging Markets High Yield Bond ETF (HYEM).
view filing
Source: SEC.gov
DB Equity Research Equity Research-North America:Markets & ETFs : Low volumes: Is this all right?
April 3, 2012--What's behind this year's low trading volume?
The first quarter recorded one of the strongest Q1 equity markets in history (S&P 500, +12%); however volume remained at relatively low readings. Therefore many market participants may be wondering whether there is consistency between the bull market and volume, or not.
It’s all about volatility
To obtain a better understanding of the situation, we looked at the historical patterns for cash flows, volume, volatility, and the market, with special focus on ETPs. We found that volume is closely related to the volatility level. In general, we observed that volume soars around volatility peaks and declines on plunging volatility. Equity Cash Flows, on the other hand, present an inverse relationship with Volatility. Usually, inflows are experienced during declining volatility, while outflows are more common during rising volatility .
ETP Net Cash Flows have been strong this year
Overall ETP cash flows have been strong according to historical levels.
All ETPs, Equity ETPs, and Fixed Income ETPs recorded the highest inflows in record for a first quarter:
All ETPs: +$52.0bn (+101% YOY)
Equity ETPs: +$31.6bn (+90% YOY)
Fixed Income ETPs: +$17.1bn(+126% YOY)
ETP Short Interest has declined more than $35bn (-25%) since September ‘11
Equity ETP short interest dropped from last year’s peak of $139bn in Sep ’11 to $91bn at the end of Dec ‘11 and $94bn at the end of Jan ‘12. Short interest stood at $104bn as of Mar 15, 2012.
Current low Volume is driven by low volatility, not by lack of investors’ interest
The volume YOY change for the first quarter of the year was:
Total cash equities: -10.2%.
Tot. cash eq. (ex Equity ETPs): -10.4%
All ETPs: -13.0%.
Equity ETPs: -15.4%.
Volatility averaged 18.2% during the first quarter of 2012, which is below the daily average of 27.7% in the past 45 months.
Volume is highly correlated with the change (%) of monthly volatility peaks (e.g. Volume in Mar= f(VIX peak in Mar / VIX peak in Feb). Actually, Q1 volumes came around the projected values according to the volatility levels experienced during the same period.
For the record: Volume & Cash Flows tell different stories
Volume measures how much money is changing hands within the market, however cash flows measure how much money is coming in or going out of the market.
Volume is driven mostly by market sentiment or expectations (e.g. fear), while cash flows are driven mostly by fundamentals (e.g. positive surprises in economic or company earnings data).
to request report
Source: Deutsche Bank-Equity Research-North America
McGraw-Hill Buys Market-Data, Systematic-Trading Provider QuantHouse
April 3, 2012--McGraw-Hill Cos.'s (MHP) S&P Capital IQ unit acquired QuantHouse, a provider of market-data and systematic trading technology, as it looks to offer an integrated low-latency feed for all of its data.
Financial terms weren't disclosed.
Founded in 2005, QuantHouse provides end-to-end trading systems--including ultra-low-latency market data technologies, algo-trading development framework, proximity hosting and order routing services--to hedge funds, market makers, proprietary desks and latency sensitive sell-side firms.
read more
Source: Wall Street Journal
Horizons ETFs Launches Canada's First Inverse Volatility ETF
April 3, 2012--Horizons Exchange Traded Funds Inc. ("Horizons ETFs") and its parent Horizons ETFs Management (Canada) Inc. are pleased to announce the launch of the Horizons BetaPro S&P 500 VIX Short-Term Futures Inverse ETF ("HVI"). HVI will begin trading tomorrow on the Toronto Stock Exchange ("TSX") under the ticker symbol HVI.
HVI is designed to provide daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to the single inverse (opposite) of the daily performance of the S&P 500 VIX Short-Term Futures™ Index (the "S&P VIX S-T Index").
Any U.S. dollar gains or losses as a result of HVI's investment will be hedged back to the Canadian dollar to the best of its ability. HVI does not seek to achieve its stated investment objective over a period of time greater than one day.
read more
Source: Horizons Exchange Traded Funds Inc
Market Vectors Launches International High Yield Bond ETF
IHY focuses on high-yield debt issued by corporations located outside of the U.S.
April 3, 2012--Market Vectors ETF Trust announced today that it has launched its International High Yield Bond ETF (NYSE Arca: IHY), the first U.S. listed exchange-traded fund (ETF) designed to address a segment of the high-yield bond market that it believes, based on other funds currently available in the U.S. market, may be underrepresented in many investor portfolios.
"Our research has shown that for many investors the current allocation to corporate high-yield debt may miss as much as 35 percent of the global high-yield market,” said Edward Lopez, Market Vectors’ Marketing Director. “That underexposure may be especially important as international corporate high-yield bonds currently offer higher yields as well as historically lower default rates than similar debt instruments issued in the U.S.1"
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Source: Van Eck Global
BATS Global Markets to list two exchange traded funds Tuesday
April 2, 2012--Two new exchange traded funds will begin trading Tuesday through BATS Global Markets Inc., the first listings since the Lenexa-based company's own public stock offering failed last month.
BATS has launched several exchange traded fund listings successfully, but its corporate stock listing service uses a different software system.
The corporate listing system failed spectacularly on March 23 when BATS tried to launch an initial public offering of its own stock on its own stock exchange. Although the software problem was diagnosed and then quickly fixed, BATS decided not to go through with the offering.
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Source: Kansas City Star
.....BlackRock Announces Termination of Claymore Inverse 10 Yr Government Bond ETF
April 2, 2012--BlackRock Investments Canada Inc., an indirect, wholly-owned subsidiary of BlackRock, Inc. (NYSE: BLK - News), today announced that it will terminate the Claymore Inverse 10 Yr Government Bond ETF (TSX: CIB.TO - News) and distribute to unitholders the proceeds to be received from the liquidation of the assets, less all liabilities and all expenses to be incurred in connection with the termination and dissolution of CIB.
BlackRock, and its leading exchange traded fund (ETF) provider iShares, proposed late last year a series of regulatory reforms and recommendations for enhanced disclosure and transparency related to the ETF markets. ETFs have provided investors with a low cost and transparent way to access a wide variety of asset classes for more than two decades. When first introduced, ETFs brought investors new levels of transparency and disclosure among other benefits. However, increasingly complex ETFs and related products have sometimes failed to maintain that standard and have introduced new risks to these products.
| June 11, 2026 ETFGI reports European ETF Market Surges Past US$3.77 Trillion as Record Net Inflows Continue |
