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Morgan Stanley ETF Weekly Update
March 21, 2011--US ETF Weekly Update
Weekly Flows: $7.3 BlnNet Inflows
SPDR S&P 500 ETF (SPY) Posted $5.4 BlnNet Inflows
ETFs Traded $520 Bln Last Week
Launches: 5 New ETFs
US-Listed ETFs: Estimated Flows by Market Segment
ETFs rebounded last week posting net inflows of $7.3 bln(second largest week of the year)
Net inflows were driven by US Large-Cap (SPY specifically), International
Developed and Commodity ETFs
ETF assets stand at more than $1 trillion, up 2.5% YTD
13-week flows were mostly positive among asset classes
$14.3 blnnet inflows into ETFs over past 13 weeks (International-Developed took in $8.9 bln)
EM Equity ETFs posted meaningful net outflows ($8.9 bln) over the past 13 weeks; EM Equity net outflows have slowed recently, however, with only $685 mlnnet outflows the past 4 weeks
US-Listed ETFs: Estimated Largest Flows by Individual ETF
SPDR S&P 500 ETF (SPY) posted net inflows of $5.4 blnlast week, the most of any ETF
Despite uncertainty with events in Japan, iShares MSCI Japan Index Fund (EWJ) generated net inflows of $1.1 blnlast week; over the past 13 weeks EWJ exhibited net inflows of $2.4 bln, the most of any ETF
iSharesMSCI Emerging Markets Index Fund (EEM) had the largest net outflows over the past 13 weeks ($10.2 blnnet outflows)
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Source: Morgan Stanley
Charles Schwab buys OptionsXpress for $1 billion
March 21, 2011--Charles Schwab is buying online brokerage services provider OptionsXpress for $1 billion.
OptionsXpress stock jumped $2.51, 16.4 per cent, to $17.84 in pre-market trading. Schwab shares added 9 cents to $17.65.
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Source: FT.com
First Global Agribusiness Small Cap ETF (CROP) Set to Launch by IndexIQ
IQ Global Agribusiness Small Cap ETF (CROP) provides exposure to sector where fast growth is driven by rising food prices, rapidly expanding populations and demand for alternative energy
March 21, 2011--IndexIQ, a leading developer of index-based liquid alternative investment solutions, is set to launch the IQ Global Agribusiness Small Cap ETF (NYSE Arca: CROP) on March 22, 2011, it was announced today.
CROP is the first Exchange-Traded Fund (ETF) designed to provide exposure to global small capitalization companies engaged in the fast-growing agribusiness sector, including agricultural machinery, livestock operations, crop production and farming, and biofuels and alternative energy. It seeks to track, before fees and expenses, the performance of the IQ Global Agribusiness Small Cap Index (Bloomberg Index Ticker: IQSMCROP).
The CROP launch comes only one month after food prices soared 3.9% in February, representing the biggest monthly increase since November 1974. Meat and dairy prices also rose in February, boosted by higher prices for corn and soybean that are used in animal feed. Economists widely expect food prices to continue rising for the remainder of 2011. Earlier this month, the United Nations Food and Agriculture Organization announced that global food prices have risen to their highest levels since 1990, when the agency first began tracking them.
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Source: Index IQ
Horizons Gold Yield Fund Re-Opened for Investment
March 21, 2011-- Jovian Capital Corporation ("Jovian") (JOV: TSX) is pleased to announce that its subsidiary AlphaPro Management Inc. ("AlphaPro"), manager of the Horizons AlphaPro exchange-traded funds (the "ETFs"), has filed a preliminary short form prospectus for a public offering (the "Offering") of additional units of Horizons Gold Yield Fund (the "Fund").
The Offering is expected to close on or about April 1, 2011. The Offering comprises Class A and Class F Units (the "Units"). The initial public offering of the Fund closed in December 2010 and, together with the exercise of the over-allotment option, approximately 5.25 million Units were issued for gross proceeds of approximately of $52.5 million. The Class A units of the Fund are listed for trading on the Toronto Stock Exchange ("TSX") under the symbol HGY.UN.
The Fund's investment objectives are to provide holders of Units with: (i) exposure to the price of gold bullion hedged to the Canadian dollar, less the Fund's fees and expenses; and (ii) tax-efficient monthly distributions. The targeted monthly distribution rate for the second quarter of 2011 is $0.0542 per Unit ($0.65 per annum). This expected rate will be applicable to the distributions declared in April, May and June 2011. It is expected that monthly distributions received by investors will consist primarily of return of capital.
The Fund was created to offer investors a low cost exposure to the price of gold bullion, while providing monthly tax-efficient distributions. The Fund seeks to achieve its investment objectives by gaining exposure to a portfolio consisting of securities and other instruments that provide exposure to the price of gold bullion (the "Gold Portfolio"). The Gold Portfolio is managed by JovInvestment Management Inc. (the "Portfolio Manager"). The Portfolio Manager writes at-the-money covered call options on approximately, and not more than, 33% of the securities in the Gold Portfolio. The Gold Portfolio does not employ leverage.
To enhance overall liquidity, the Fund is expected to convert automatically into an exchange traded fund by no later than July 31, 2012.
Source: Jovian Capital Corporation
MarketRiders launches all-ETF energy hedge portfolio
March 21, 2011--The high cost of oil and the fast-rising price of gas is stimulating the markets this month -- but in the wrong direction. To help investors who want to profit from and have a portfolio hedge from rising energy prices, MarketRiders is offering its own all-Exchange Traded Fund (ETF) energy hedge fund. The MarketRiders Energy Hedge Portfolio provides greater diversity to the energy sector for about .5% versus the average 1.5% for energy mutual funds like Blackrock Energy & Resources and Invesco Energy.
MarketRiders built this portfolio as a template in its web-based portfolio manager, so anyone who wants to allocate some investment dollars to take advantage of the run up in oil prices can do so. "Most investors have no business picking specific energy sector company stocks. Buying the ETFs in our Energy Hedge Portfolio is the best way to invest in the whole gamut of energy," explains Mitch Tuchman, CEO. "The portfolio we recommend is the most logical and low cost way to apportion your investment in this sector and gives you a shot at being the one who wins while the rest of us groan when we fill up our cars every week."
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Source: MarketRiders
NYSE Euronext outlines Amex deal
March 21, 2011--NYSE Euronext announced the terms of a deal to sell a majority of its NYSE Amex options market to dealers such as Citadel, Goldman Sachs and Citigroup, which could bolster its efforts to get regulatory approval for its merger with Deutsche Börse.
The plan to sell a stake in Amex was originally announced in 2009, in the hopes of boosting the struggling exchange’s trading volumes. However final terms were delayed as details were hammered out and regulators shifted their focus to broader market structure reforms.
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Source: FT.com
