Americas ETP News
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Tales from the Tape: Factoring in Trade Execution in the Performance Equation
Intended for Institutional Investors.
October 9, 2013--In the previous months we've examined how a few of the conventional execution methods can impact liquidity and affect price discovery.
The challenge lies in knowing the most appropriate time to use each venue, because the improper choice could result in information leakage, market impact, and unnecessary slippage. Mitigating all of these factors is crucial to protecting the alpha that you're trying to generate.
This month we're going to take a closer look at the agency approach and the role agency brokers play in the ETF ecosystem.
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Source: Blaze Portfolio
Minutes of the Federal Open Market Committee September 17-18, 2013
October 9, 2013--The Federal Reserve Board and the Federal Open Market Committee on Wednesday released the attached minutes of the Committee meeting held on September 17-18, 2013.
The minutes for each regularly scheduled meeting of the Committee ordinarily are made available three weeks after the day of the policy decision and subsequently are published in the Board's Annual Report. The descriptions of economic and financial conditions contained in these minutes are based solely on the information that was available to the Committee at the time of the meeting.
view the Minutes of the Federal Open Market Committee September 17-18, 2013
Source: FBR
BMO-Canadian ETF Outlook 2013-October Update
Continued growth and relevance amid market uncertainty
October 9, 2013--With market uncertainty exacerbated by the roller coaster ride of U.S. Federal Reserve Bank (Fed) announcements, exchange traded funds (ETFs) have experienced significant inflows, as investors gravitate toward a vehicle that proves efficient and responsive to changing needs, and changing market environments.
This update to our 2013 Outlook examines tactical benefits, and provides some interesting statistics on the popularity-and future trends -of ETFs.
As predicted, inflows continue
Through the first nine months of 2013, the Canadian ETF industry has continued
to grow, with over $4.1 billion in inflows. In the big picture, Canadian ETFs have approximately $60 billion in assets under management (AUM) as of September 30, an increase of 6.0% over year-end 2012.
Over the summer, we saw a significant shift in market behaviour as the U.S. Fed indicated it might taper its bond-buying program. While equity demand has held steady, investors' preference for fixed income has declined, in response to sharply rising yields and greater uncertainty in the bond markets. The surprise announcement on September 18th, that the Fed would hold tight on monetary stimulus, may reinvigorate emerging markets, and had an immediate positive impact on gold and fixed income prices.
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Source: BMO Global Asset Management
CBOE's VIX Options Establish New Single-Day Volume Record: Nearly 1.8 Million Contracts Change Hands
October 8, 2013--Chicago Board Options Exchange(R) (CBOE(R)) today reported that options on the CBOE Volatility Index(R) (VIX(R)index) established an all-time, single-day volume record. Options volume totaled an estimated 1,782,329 contracts, surpassing the previous record of 1,399,867, contracts traded on April 15, 2013.
Year to date through September, VIX options average daily volume (ADV) was 565,040 contracts, a 32-percent increase over the same period a year ago. VIX futures ADV year to date through September was nearly 160,000 contracts, an 86-percent increase over the same period a year ago.
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Source: CBOE
Don Phillips to Step Down as Head of Research for Morningstar, Haywood Kelly to Assume His Responsibilities in January 2014
October 8, 2013--Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today announced that Don Phillips will be stepping down as head of the company's Research group after the first of the year.
Haywood Kelly, currently head of equity, credit, and structured credit research, will assume Phillips' responsibilities as global head of Research, effective Jan. 1, 2014. Phillips will be a managing director and remain a member of the board of directors.
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Source: Morningstar, Inc.
Fidelity Billionaire Johnson Taps ETFs as Profits From Funds Fade
October 8, 2013--When Abigail Johnson began her apprenticeship at Fidelity Investments 25 years ago, the Boston-based firm founded by her grandfather was the nation's biggest mutual-fund company and star manager Peter Lynch was enjoying a performance streak at the Magellan Fund--a 29 percent average return over 13 years-- that ranks among the best in the industry's history.
A year ago, Johnson, now 51, was named president of a very different Fidelity. Under her father, Edward C. Johnson III, known as Ned, Fidelity has surrendered its leadership and much of its iconic status as a money manager, Bloomberg Markets magazine will report in its November issue.
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Source: Bloomberg
DeB-Synthetic Equity & Index Strategy-North America-US ETF Market Weekly Review-Fixed Income ETPs $3.1bn outflows led by Sovereign debt products
October 8, 2013--Data in this report is as of Fri, October 4th
Market and Net Cash Flows Review
Markets were mixed during last week. The US (S&P 500) end almost flat (-0.07%); while, outside the US, the MSCI EAFE (in USD) dropped by 1.04% and the MSCI EM (USD) rose by 1.04%. In the meantime, performance was mixed across US sectors. Healthcare (+0.94%) and Materials (+0.84%) recorded the biggest gains; while, Industrials (-0.94%) and Consumer Staples (-0.93%) were the worst performing sectors; The DB Liquid Commodity Index fell by 0.13%.
In the meantime, the Agriculture sector (DB Diversified Agriculture Index) and the WTI Crude Oil rose by 0.10% and 0.94%, respectively; while Gold and Silver prices fell by 1.93% and 0.20%, respectively. Moving into other asset classes, the 10Y US Treasury Yield rose 2bps ending at 2.66%. Last but not least, Volatility (VIX) rose by 8.28% during the same period.
The total US ETP flows from all products registered $1.0bn (-0.1% of AUM) of outflows during last week vs. $3.6bn (-0.2%) of outflows the previous week, setting the YTD weekly flows average at +$3.1bn (+$125.1bn YTD in total cash flows).
Equity, Fixed Income and Commodity ETPs experienced flows of +$3.0bn (+0.2%), -$3.1bn (-1.2%) and -$0.8bn (-1.2%) last week vs. -$4.1bn (-0.3%), +$0.9bn (+0.3%) and -$0.2bn (-0.3%) in the previous week, respectively.
Top 3 ETPs & ETNs by inflows: IJH (+$2.4bn), SPY (+$2.0bn), MVV (+$1.2bn)
Top 3 ETPs & ETNs by outflows: IEI (-$2.6bn), MDY (-$1.8bn), IWM (-$1.0bn)
New Launch Calendar: income, gold miners, and currency hedging
There were six new ETFs listed during the previous week on the NYSE Arca. Deutsche Bank listed three new currency hedged ETFs offering exposure to the UK, Europe and Asia Pacific ex Japan regions; in the meantime, Revenue Shares added an actively managed, revenue weighted ETF offering exposure to US Mid/Large companies with focus in dividend yield; Last but not least, DirexionShares launched a 3x Long and 3x Short ETF pair providing investors with exposure to Gold and Silver mining small-cap companies.
Turnover Review: Floor activity increased by 25%
Total weekly turnover increased by 25.1% to $333.7bn vs. $266.7bn from the previous week; furthermore, last week's turnover level was 23.8% over last year's weekly average. Equity, Fixed Income and Commodity ETPs turnover increased by $56.6bn (+24.0%), $5.9bn (+30.2%) and $3.7bn (+41.5%) during the same period, respectively.
Assets under Management (AUM) Review: assets dropped by $2.7bn
US ETP assets dropped by $2.7bn (-0.2%) totaling $1.550 trillion at the end of the week. As of last Friday, US ETPs had accumulated an asset growth of +16.2% YTD. Assets for Equity, Fixed Income and Commodity ETPs moved +$2.8bn, -$3.4bn and -$2.0bn during last week, respectively.
Visit https://eqindex.db.com/etf/ for more info.
Source: Deutsche Bank- Synthetic Equity & Index Strategy-North America
Janet Yellen nominated by Obama to be head of US Federal Reserve
President will nominate Yellen as head of US central bank on Wednesday, ending long debate over successor to Ben Bernanke
October 8, 2013--
The White House is to name Janet Yellen as the first woman to head the US Federal Reserve, arguably the most important job in world finance, the Obama administration has confirmed.
Barack Obama is to make the announcement at 3pm ET on Wednesday, the White House said. Yellen and the current Fed chair, Ben Bernanke, are expected to attend.
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Source: The Guardian
DB-Synthetic Equity & Index Strategy-North America-US ETF+ Quarterly Directory-Q3 2013 ETPs
October 7, 2013--Data as of September 30, 2013
This document includes all US listed exchange-traded funds (ETFs) and exchange-traded vehicles (ETVs), plus a special section covering exchange-traded notes (ETNs).
The directory is organized by asset class and asset-class-related sub sections. Within each sub section it has also been sorted. For Equity and Fixed Income ETPs it is sorted by country (or sub region for regional products) in alphabetical order and by AUM in descending order, and for the other ETP asset classes it is sorted by sub sector in alphabetical order and by AUM in descending order. Numerous key information points per product have been included in order to give readers an overview of their respective areas of interest. Among the key numeric information we include average daily turnover, assets under management, and cash flows (all in $US). If you have any questions on any of the products listed or any suggestions on how to improve future editions of the directory, please do not hesitate to get in touch.
Visit https://eqindex.db.com/etf/ for report
Source: Deutsche Bank- Synthetic Equity & Index Strategy-North America
Schwab ETF platform for 401(k)s hits regulatory speed bump
The platform, which was expected to debut in the fourth quarter, may need more work
October 7, 2013--The Charles Schwab Corp.'s long-awaited ETF platform for 401(k)s-widely forecasted to launch in the fourth quarter-has hit a regulatory speed bump.
The offering, which would make exchange-traded funds available to retirement plans, has run into a snag with regulators, according to Steve Anderson, executive vice president at Schwab Retirement Plan Services.
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Soure: Investment News
