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Morgan Stanley ETF Fund Flows-ETFs Exhibited Net Inflows of $52.6 Billion in 3Q13
October 8, 2013--There were 31 new ETFs listed in the US in the third quarter of 2013.
An additional 29 ETFs have been launched since the end of the third
quarter, bringing year-to-date ETF issuance to 124. However, there have
also been 43 closures/delistings this year, and as of 11/5/13, there were 41
issuers with 1,320 ETFs listed in the US.
Net inflows into US-listed ETFs were $52.6 billion during 3Q13. This
is well above the average quarterly rate of net cash inflows over the past
three years of $38.4 billion and is a large increase from the second quarter
net inflows of $17.0 billion. Through the first three quarters of 2013, net
inflows into ETFs were $121.2 billion, which is slightly below last year’s
net inflows of $133.4 billion through the first three quarters, but still
shaping up to be a strong year.
The largest net cash inflows this past quarter went into International
- Developed ETFs. International - Developed ETFs had net cash inflows
of $16.6 billion this past quarter, bringing net inflows for the first three
quarters of 2013 to $39.4 billion, the most of any segment. While ETFs
providing exposure to Japan were the primary drivers of flows into this
segment for the first half of the year, ETFs allocated to Europe led the
way in the third quarter.
Commodity ETFs had the largest net outflows in the third quarter of
2013. Net outflows from these ETFs were $2.0 billion. Notably, one ETF
providing exposure to gold had net outflows of $2.6 billion and was the
main driver of the weakness in this segment.
US ETF industry assets of over $1.6 trillion are ~21% higher year to
date. Despite the growth of the ETF market, it remains concentrated with
three providers and 20 ETFs accounting for almost 75% and 42% of
industry assets, respectively.
There have been 295 US-listed ETFs terminated since the end of 2007. There have been 43 ETFs liquidated so far in 2013. The rate of liquidations this year has slowed from 2012’s pace, when 82 ETFs closed, and is more in line with the rate of liquidations in years prior to 2012. The number of ETFs liquidated in 2008, 2009, 2010, 2011 was 44, 51, 49, and 26, respectively. Many newer listings have struggled to gain meaningful traction. The 422 ETFs launched since the start of 2011 (excluding liquidations) have average assets of $181.0 million but a median asset level of just $20.4 million. While some of the products offer unique exposure, many of the newer ETFs, particularly those with a narrower focus and those based on less well-known indices, have struggled to gain assets.
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Source: Morgan Stanley
CFTC.gov Commitments of Traders Reports Update
November 8, 2013--The current reports for the week of November 5, 2013 are now available.
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Source: CFTC.gov
Global X Funds Launches Next Emerging & Frontier ETF
November 7, 2013--Global X Funds, the New York-based provider of exchange-traded funds (ETFs), today launched the Global X Next Emerging & Frontier ETF (NYSE Arca: EMFM).
This new product will provide investors with access to 35 countries exhibiting high growth potential and favorable demographical trends that may stimulate their rise as economic powers. Importantly, the index does not include equities from the BRIC countries (Brazil, Russia, India, and China) and other, more advanced economies like South Korea or Taiwan.
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Source: Wall Street Journal
Why did Vanguard reverse-split a popular ETF?
November 7, 2013--Q: Why did Vanguard reverse-split a popular ETF?
A: Some Vanguard investors thought they hit the jackpot on Oct. 24. It appeared the shares of the Vanguard's popular Standard & Poor's 500 exchange traded fund doubled in value in one day.
According to the price quote for shares of the ETF, which trades under the symbol "VOO", it soared from $79.97 to $160.46. What actually happened with the ETF was far less exciting.
On Oct. 24, Vanguard did a somewhat unusual 1-for-2 reverse stock split of the its S&P 500 ETF. The stock price doubled because Vanguard reduced the number of shares outstanding by half.
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Source: USA Today
Investment-Grade ETF Uses Interest-Rate Hedge to Lure Investors
November 7, 2013--A new investment-grade bond exchange-traded fund from ProShare Advisors LLC is embedding interest-rate protection to accommodate investors who expect rates to rise as the Federal Reserve curbs its unprecedented stimulus.
U.S. government bond futures will be used to hedge against rising interest rates in the ProShares Investment Grade-Interest Rate Hedged ETF, which will aim for zero duration, Bethesda, Maryland-based ProShares said in a statement distributed by Business Wire today.
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Source: Bloomberg
WisdomTree Launches Korea Hedged Equity Fund (DXKW)
DXKW Seeks to Provide Exposure to Robust Korean Export Market and Help Reduce Overall Volatility of Local Currency
WisdomTree Expands Currency Hedged Equity Family of ETFs
November 7, 2013--WisdomTree (NASDAQ: WETF), an exchange-traded fund ('ETF") sponsor and asset manager, today announced the launch of the WisdomTree Korea Hedged Equity Fund (DXKW) on the NASDAQ Stock Market. DXKW seeks to provide exposure to Korean equity markets while hedging exposure to the won and has an expense ratio of 0.58%.
'Abenomics' and a Weak Yen -Headwind for South Korean Exporters
South Korea is a flourishing emerging economy, known for its shipping industry and exporting prowess, supplying the world with advanced technologies and automobiles from global leaders. In 2012, South Korea’s gross domestic production (GDP)1 was nearly twice that of many developed nations including Switzerland, Sweden and Norway, and almost 60% of the country's GDP was from exports.
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Source: WisdomTree
FactSet Adds Van Eck Market Vectors ETFs to Platform
November 7, 2013--FactSet, a leading provider of financial data and analytical software for investment professionals, today announced the integration of Van Eck's Market Vectors Exchange Traded Funds (ETFs) on the FactSet platform.
"Van Eck has always been a big proponent of making ETF and index data easily accessible and transparent and we’re delighted to provide FactSet users access to both return-and constituent-level data for Market Vectors ETFs and indices," says Ed Lopez, Marketing Director at Van Eck Global, sponsor of Market Vectors ETFs and parent company of Market Vectors Index Solutions GmbH.
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Source: FactSet
CME Group Announces Launch of Yen-Denominated Nikkei 225 Options
Options Will Reference Osaka Securities Exchange's Nikkei 225 Futures Contract
November 7, 2013--CME Group, the world's leading and most diverse derivatives marketplace, today announced the launch of options on CME's Yen-denominated Nikkei Stock Average futures.
CME Group will reference the Osaka Security Exchange's (OSE) Nikkei 225 (Yen) Futures contract in connection with these options contracts. These options contracts are listed with, and subject to, the rules and regulations of CME, and will be available for trading on CME Globex from January 13, 2014, pending CFTC review.
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Source: CME
BATS Exchange Welcomes ProShares ETF
ProShares Lists Fourth Exchange-Traded Fund on BATS Exchange
November 7, 2013--BATS Global Markets (BATS), a leading operator of securities markets in the U.S. and Europe, today announced that the ProShares Investment Grade-Interest Rate Hedged ETF (BATS: IGHG) will begin trading today on BATS Exchange under the ticker IGHG.
ProShares, a premier provider of alternative exchange-traded funds (ETF), will now have four exchange-traded funds listed on BATS Exchange. The ProShares Investment Grade-Interest Rate Hedged ETF is designed to track the Citi Corporate Investment Grade (Treasury Rate-Hedged) Index, which is comprised of long positions in USD-denominated investment grade corporate bonds and short positions in U.S. Treasury notes or bonds of, in aggregate, approximate equivalent duration.
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Source: BATS
DB-Synthetic Equity & Index Strategy-North America-US ETF Market Monthly Review-ETP assets up by $75bn as investors' risk appetite grows
November 6, 2013--Data in this report is as of Thursday, October 31
US ETP assets higher by $75bn
ETP assets in the US rose by $74.9bn to $1.619 trillion (YTD +21.4%) last month. Global ETP industry assets closed at $2.193 trillion (YTD +19.2%)
Flows Review: investors keep loving equities
US ETPs experienced inflows of $25.9bn during October (+1.7% of last month's AUM).
Within long-only ETPs, total flows were +$26.3bn in October vs. +$32.4bn in September. Equity, Fixed Income, and Commodity long-only ETPs experienced flows of +$31.3bn, -$3.2bn and -$2.2bn, respectively.
Investors' appetite for risky assets remained strong during October. As already mentioned, Equity products remained the most attractive asset class by gathering $31.3bn in new cash last month for a total of +$158.9bn YTD (already 38% above the 2012 total figure for equities); within equities, attention was still centered in developed markets, with emphasis in US focused ETPs (+$19.4bn) and increasing momentum in DM ex US ETPs (+$8.3bn, their second largest monthly inflows on record), fueled by flows into broad regional benchmarked products (+$7.7bn). Meanwhile, in the Fixed Income space we saw investors pulling $5.0bn out of Sovereign debt ETPs and pouring cash into Corporate (+$2.0bn) products, specially into HY (+$2.4bn) focused ETPs; Short Duration (+$0.2bn) ETPs continued gathering new cash, however at a slower pace in the last month. Last but not least, Commodity ETPs, which have not received a single positive month thus far this year, ended October with $2.2bn (-$25.6bn YTD) in net redemptions.
New Launch Calendar: thirty new products covering three asset classes
October was a very busy month for new listings. There were twenty-eight new ETPs and two new ETNs listed during the previous month. Twenty-six of them were listed in the NYSE Arca, while the remaining two were listed in Nasdaq. The new products offer exposure to a broad variety of strategies covering multiple asset classes.
Turnover Review: Floor activity increased by 22.5% in October
ETP turnover totaled $1.448 trillion last month, 22.5% (+$265.8bn) higher than the previous month figure of $1.182 trillion, and 23.9% above last year's monthly average of $1.168 trillion. Equity ETPs turnover increased by $264.6bn (+25.5%); while Fixed Income and Commodity ETPs turnover decreased by $2.5bn (-2.8%) and $1.7bn (-3.6%), respectively.
ETP trading made up 26.6% of all US cash equity trading in October, down from this year's peak of 32.0% in June, and still below its 3-year monthly average of 28.1%.
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Source: Deutsche Bank-Synthetic Equity & Index Strategy-North America
