Americas ETP News
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Bearish ETFs enjoy bumper inflows
October 5, 2011--Exchange traded funds in the US that act as a bet against the S&P 500, the New York stock index, have enjoyed bumper inflows as investors try to benefit from falling asset prices.
The so-called “inverse” ETFs, which track a basket of underlying assets such as equities and commodities, but aim to yield the opposite return, took in net flows of $890m in August and $885m in September.
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Source: FT.com
ISE Partners with UBS to Launch ETN Based on the ISE Cloud Computing Index
October 5, 2011--October 5, 2011 – The International Securities Exchange (ISE) today announced that UBS has
launched the ETRACS Monthly 2xLeveraged ISE Cloud Computing Total Return Index ETN (Ticker: LSKY). This exchange-traded note (ETN) is based on the ISE Cloud Computing Index™, a benchmark that tracks companies actively involved in the cloud computing industry. Index components include companies that are infrastructure providers for the “cloud,” firms that provide goods and services in support of the cloud computing space, or technology conglomerates whose business model uses or supports cloud computing technology.
LSKY began trading on NYSE Arca on October 5, 2011.
“We are very pleased to again partner with UBS to develop and launch an innovative exchange-traded note,” said Kris Monaco, Head of New Product Development at ISE. “The ISE Cloud Computing Index is a unique benchmark in this emerging industry, and this ETN provides investors with a compelling investment alternative for gaining leveraged exposure to this sector.” With this most recent product addition, UBS currently offers a portfolio of five ETNs based on ISE indexes. There are currently 16 exchange-traded products based on ISE’s proprietary indexes, including 11 exchange-traded funds.
Historical index values, real-time pricing information and methodology guides for ISE indexes are available on
ISE’s website at www.ise.com/index.
Source: International Securities Exchange (ISE)
Russell expands family of "investment discipline" ETFs
Four new ETFs launched today offer focused exposure in the small cap asset class
October 5, 2011--Russell Investments launched four Small Cap Investment Discipline exchange-traded funds (ETFs) on NASDAQ today, expanding its line-up of innovative Investment Discipline ETFs. Each is designed to provide investors with access to specific investment strategies that mirror the way equity managers tend to invest.
"We created these unique products to answer a very specific need in the market," said James Polisson, CEO of Russell's global ETF business.
"Sophisticated investors now have an investment vehicle that provides them with focused exposure in the small cap asset class beyond the strict classification by sector and style."
The four ETFs listed today are based on corresponding and newly launched Russell U.S. Small Cap Investment Discipline Indexes, which were constructed to give focused exposure to investment approaches commonly practiced by professional small cap equity managers. These underlying indexes leverage Russell's long history and expertise in small cap index creation as well as Russell's unique understanding of how managers invest. By evaluating the characteristics of thousands of managers in specific disciplines, Russell identified a set of key characteristics that define a small cap portfolio within each discipline.
The new suite of small cap ETF consists of the following:
Russell Small Cap Aggressive Growth ETF (Ticker: SGGG)
Russell Small Cap Consistent Growth ETF (Ticker: SCOG)
Russell Small Cap Low P/E ETF (Ticker: SCLP)
Russell Small Cap Contrarian ETF (Ticker: SCTR)
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Source: Russell Investments
BNY Mellon ADR Index Monthly Performance Review is Now Available September 2011
October 5, 2011--The BNY Mellon ADR Index Monthly Performance Review September 2011 is now available.
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Source: BNY Mellon
iShares files with the SEC-iShares 2018 S&P AMT-Free Municipal Series Fund
October 5, 2011---iShares has filed a post-effective amendment, registration statement with SEC for the iShares 2018 S&P AMT-Free Municipal Series Fund.
view filing
Source: SEC.gov
SEC Scrutinizes Algorithmic Traders
October 4, 2011--Algorithmic traders and quant funds are under close scrutiny from a U.S. Securities and Exchange Commission enforcement team responsible for policing hedge funds, the unit’s co-chief said at securities law forum.
The SEC is “very much focused” on possible misconduct by traders who primarily use computer models to execute investment strategies, and more cases in those areas are likely, Bruce Karpati said today during a Practising Law Institute panel discussion in New York. Investigators are zeroing in on firms with “aberrational performance,” he said, without giving details on practices that are under scrutiny.
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Source: Bloomberg
Morgan Stanley-Preliminary 3Q 2011 ETF Net Cash Flows Estimates
October 4, 2011--ETF Preliminary 3Q 2011 ETF Net Cash Flows Estimates
We estimate that net cash inflows into US-listed ETFs were $20.1 billion during the third quarter of 2011. This report contains our estimates and analysis of 3Q 2011 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 $20.1 billion during the third quarter of 2011. The $20.1 billion in
net cash inflows is below the average quarterly rate of $31.2 billion over the past five years. Despite net cash
inflows of $74.6 billion so far this year, US-listed ETF assets have declined 4% YTD to $958.8 billion due to
market depreciation.
The largest net cash inflows went into ETFs tracking fixed income indices. This asset class had net cash inflows of $11.9 billion in 3Q 2011. US Large Cap Equity ETFs had the next highest net cash inflows at $5.0 billion and Leveraged/Inverse ETFs also had strong net cash inflows of $4.8 billion this past quarter. US Sector & Industry ETFs had the largest net cash outflows at $4.8 billion in 3Q 2011.
Vanguard exhibited net cash inflows of $7.1 billion in 3Q 2011, the largest of any provider. BlackRock posted the next highest net cash inflows at $3.6 billion. As of 9/30/11, BlackRock, State Street Global Advisors and Vanguard accounted for 77% of ETF assets.
There were 35 new ETFs launched in the US during 3Q 2011. So far this year, there have been 188 ETFs launched and eight ETFs have liquidated. As of 9/30/11, there were 35 issuers with 1,147 ETFs. Almost $6 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 the Asian debt markets and US dividendpaying stocks.
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Source: Morgan Stanley
Global X files with the SEC Rydex Announces the Launch of Its CurrencyShares Chinese Renminbi Trust "The renminbi has become an important currency in the world, and the China growth story is expected to continue long-term," said Jim King, an ETF portfolio manager at Rydex|SGI. "The Chinese Renminbi Trust offers investors a way to participate in China's burgeoning economy, as well as diversify their portfolio with currency exposure," he said. read more J.P. Morgan to Sponsor Four Additional Vanguard ETFs on the Mexican Stock Exchange The new Vanguard ETFs are listed on the BMV in pesos and trades can be initiated through a local broker: Vanguard S&P 500 ETF (VOO), Vanguard Global ex-U.S. Real Estate ETF (VNQI), Vanguard Short-Term Government Bond ETF (VGSH) and Vanguard Short-Term Corporate Bond ETF (VCSH). J.P. Morgan’s Depositary Receipts (DR) Group services the ETFs and handles all corporate actions. J.P. Morgan disseminates relevant shareholder and corporate actions information in the Mexican market via BMV. Additionally, a dedicated J.P. Morgan representative is available in Mexico City to provide local expertise and guidance to investors. read more
October 4, 2011--Global X has filed a post-effective amendment, registration statement with the SEC for the Global X Social Media Index ETF
NASDAQ: SOCL
Source: SEC.gov
FXCH is First ETF to Provide Pure Exposure to the Chinese Currency; Offers Access to China's Growth Story
October 4, 2011--Rydex|SGI, a leading investment manager, announced today that shares of the CurrencyShares Chinese Renminbi Trust have begun trading. The launch of the CurrencyShares Chinese Renminbi Trust expands Rydex's CurrencyShares lineup to 10 ETPs.
The Chinese Renminbi Trust seeks to provide institutional and retail investors a cost-effective way to hold the renminbi, the official currency of the People's Republic of China. The primary unit of the renminbi is the yuan. The currency shares structure, similar to all of the Rydex CurrencyShares, provides pure exposure to the renminbi by holding actual foreign currency deposits, not derivatives. In addition to pure exposure, CurrencyShares' investing advantages include transparency, accessibility and choice.
Source: Rydex|SGI
October 4, 2011--J.P. Morgan announced today that it has been appointed by Vanguard, one of the world’s largest investment management companies, to offer four of its U.S.-registered Exchange Traded Funds (ETFs) on the international segment of the Mexican Stock Exchange, Bolsa Mexicana de Valores (BMV).
The four new ETFs are in addition to the 39 Vanguard ETFs previously sponsored by J.P. Morgan.
Source: JPMorgan Chase & Co.
