Americas ETP News
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American Funds to get approval to offer ETFs
Massive mutual fund operation could come storming into a popular investment product
February 4, 2015--In a move that could pave the way to a new order in the fund industry, securities regulators plan to approve a proposal by American Funds, the third-largest mutual fund brand, to offer ETFs for the first time.
The decision, announced this week by the Securities and Exchange Commission, clears the way for the manager of $1.2 trillion in mostly broker-sold mutual funds to build its own exchange-traded funds, a product that has most of its assets flowing into products that replicate an index.
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Source: Investment News
BMO gold product takes aim at ETF market
Its new product allows investors to buy and sell shares that are backed by physical bullion stored in Canada.
February 4, 2015--Bank of Montreal has launched a new way for investors to buy physical gold, offering greater security than private storage while going head to head with the $60 billion exchange-traded fund industry.
The launch comes at a critical time for bullion, with investors in recent weeks making a tentative return to the market after a prolonged exodus as the oil rout and euro zone instability reignite gold’s appeal as a safe-haven investment.
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Source: MineWeb
Advisers Can Avoid Costly ETF-Trading Missteps
Advisers should know an ETF's average daily trading volume, liquidity and bid-ask spread
February 4, 2015-Exchange-traded funds continue to gain in popularity among financial advisers, but some fall into trading traps that can add unnecessary expense for their clients.
These mistakes can chip away at what is one of the main appeals of ETFs-their low cost structure. Some types of slip-ups would seem obvious, such as forgetting to use a limit order to ensure the price that is paid for shares isn’t too high or the sale price too low.
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Source: Wall Street Journal
The Fiscal Multiplier and Economic Policy Analysis in the United States: Working Paper 2015-02
February 3, 3015--The recession from 2007 to 2009 sparked wide interest in the economic effects of fiscal policy. That interest is reflected in an ongoing debate over the size of the fiscal multiplier.
This working paper addresses three questions: What models do economists use to estimate that multiplier? Why do estimates of it vary widely? How can economists use those estimates to judiciously analyze U.S. economic policy?
view the CBO working paper-The Fiscal Multiplier and Economic Policy Analysis in the United States
Source: Congressional Budget Office (CBO)
Canada: Oil Price Drop Weighs on Growth
February 3, 2015--Growth solid but unbalanced
Low oil prices weigh on growth, as energy investment suffers
Monetary policy accommodation, neutral federal fiscal stance appropriate
Canada's economic performance has been solid, largely thanks to a stronger U.S. recovery. Growth momentum will ease slightly this year, reflecting substantially lower oil prices, and become more balanced with a cooling housing market, said the IMF in its regular assessment of the country’s economy.
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Source: IMF
Gabelli to adopt Eaton Vance's new breed of exchang--traded funds
February 3, 2015--Gamco Investors Inc, the asset manager headed by Mario Gabelli, said on Tuesday it plans to adopt Eaton Vance Corp's new breed of active exchange-traded funds that can keep their holdings under wraps for months at a time.
For Gamco, the adoption of Eaton Vance's new exchange-traded managed funds (ETMF) structure to launch its own such funds marks the firm's first foray into the fast-growing $2 trillion U.S. exchange-traded products market.
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Source: Reuters
Fed's Bullard Calls For Breaking Up Nation’s Biggest Banks
February 3, 2015--Federal Reserve Bank of St. Louis President James Bullard warned Tuesday regulatory changes haven’t solved the too-big-to-fail problem in banking, adding that he'd support a break-up of the biggest banks in the U.S.
It's naive to think that macro prudential tools as they exist today are sufficient to tackle new bubbles without notable help from Federal Reserve interest rate policy,
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Source: Wall Street Journal
GAMCO Investors, Inc. Announces Initiative to Launch NextSharesTM Exchange-Traded Managed Funds
February 3, 2015--GAMCO Investors, Inc. ("GAMCO") today announced that it has entered into a preliminary agreement with Navigate Fund Solutions LLC ("Navigate"), a subsidiary of Eaton Vance Corp. (NYSE:EV), to support the launch by GAMCO of a family of NextSharesTM exchange-traded managed funds.
GAMCO also announced that it is preparing to file an application with the U.S. Securities and Exchange Commission seeking exemptive relief to permit the firm to offer NextShares. The application incorporates by reference the terms and conditions of the exemptive order granted to Eaton Vance Management and related parties on December 2, 2014.
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Source: Morgan Stanley
ISE Holdings Reports Business Activity for January 2015
February 2, 2015--ISE and ISE Gemini combined represent 13.6% of equity options market share, excluding dividend trades.
ISE and ISE Gemini reported a combined ADV of 2.2 million contracts.
Dividend trades made up 0.5% of industry volume in January 2015.
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Source: ISE (International Securities Exchange)
Why advisers are worried about eMoney's acquisition by Fidelity
Purchase of popular software company causes advisers to wonder whether integration with other custodians will suffer
February 2, 2015--Financial advisers using eMoney Advisor were startled Monday to learn that the firm they relied on for software to create financial plans for clients would now be mostly owned by Fidelity Investments.
Fidelity, the nation's second largest mutual fund company and a brokerage for some advisers and others offering wealth management services, bought Conshohocken, Pa.-based eMoney for an undisclosed amount, the companies announced early Monday
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Source: Investment News
