Americas ETP News
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ISE ETF Ventures and YieldShares Announce Partnership to Develop and Promote New ISE High Income IndexTM
May 6, 2013--The International Securities Exchange (ISE) today announced a partnership with YieldShares, a new firm created by Christian Magoon , a well-recognized entrepreneur in the ETF industry.
ISE and YieldShares will jointly develop and launch the ISE High Income IndexTM, an index that allows investors to efficiently track a portfolio of high income and high discount Closed-End Funds.
"Partnering with YieldShares to create the ISE High Income Index is a demonstration of ISE's growing presence in the indexing space," said Kris Monaco, Head of ISE ETF Ventures. "This agreement provides YieldShares with the global experience and network of ISE ETF Ventures while leveraging ISE's business development, marketing support and capital to effectively bring products to market. We look forward to growing this partnership with YieldShares and Christian Magoon."
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Source: International Securities Exchange (ISE)
Reggie Browne: Not All ETFs Traded Equally
May 7, 2013--Reggie Browne, perhaps the most influential ETF trading expert in the world, says investors are clearly starting to grasp the power of the ETF, but they are still assimilating all the nuances of ETF trade.
That knowledge gap is more significant than meets the eye, as ETF trading these days can amount to as much as 40 percent of dollar-value trading volume on U.S. exchanges.
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Source: IndexUniverse
DB-Synthetic Equity & Index Strategy-US ETF Market Monthly Review-ETPs added $23bn in AUM while investors 'cherry pick' risky assets
May 7, 2013--US ETP assets higher by $23bn
ETP assets in the US rose by $23.4bn to $1.472 trillion (YTD +10.4%) last month. Global ETP industry assets closed at $2.001 trillion (YTD +8.8%)
Flows Review: "cherry picking" risky assets
US ETP experienced inflows of $9.6bn during April (0.7% of last year’s AUM).
Within long-only ETPs, total flows were +$8.1bn in April vs. +$16.3bn in March. Equity, Fixed Income, and Commodity long-only ETPs experienced flows of +$9.1bn, +$6.8bn, and -$8.0bn, respectively.
Investors were not willing to give up risky assets just yet, but they have definitely become more selective in their elections. April’s strong equity flows set the YTD flows at +$57.9bn. Developed markets (+$11.7bn) flows, with special emphasis in the US (+$8.2bn) remain in uptrend while EM equity flows saw outflows of $2.9bn during last month. Outside the US, Japan ETPs continue to attract significant new assets (+$4.2bn, +$9.7bn YTD); meanwhile, Dividend ETPs kept capturing investors’ attention, with $2.9bn in fresh cash. Sector wise investors parked on defensives and away from cyclicals during the same period. Fixed income ETPs experienced strong inflows of $6.9bn (+$14.6bn YTD), with a tilt towards quality and a strong preference towards short-termed debt. Last but not least, long-only ETPs which offer exposure to commodities saw what’s now, by far, their worst month on record, with strong outflows of $8.0bn, mostly due to Gold ETPs (-$7.6bn) outflows.
New Launch Calendar: income, EM, leverage and quantitative strategies
There were twenty new ETPs and one new ETN listed during the previous month. Seventeen of them were listed in the NYSE Arca, while the remaining four where listed in the Nasdaq. The new products offer exposure to IG corporate bonds with set maturity, senior loans, international income-generating equity strategies, country and broad emerging markets, a silver option-based income strategy, and a set of quantitative factor (momentum, value and size) and active strategies focusing in US equities.
Turnover Review: Floor activity increased by 30% in April
ETP turnover totaled $1.388 trillion last month, 30.7% (+$326bn) higher than the previous month figure of $1.062 trillion, and 18.8% above last year’s monthly average of $1.168 trillion. Equity, Fixed Income and Commodity ETPs turnover increased by 29% (+$265.3bn), 15% (+$11.4bn) and 114% (+$49.4bn) during April
ETP trading made up 28.0% of all US cash equity trading in April, down from last year’s peak of 28.8% in June, and still below its 3-year monthly average of 28.6%.
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Source: Deutsche Bank - Synthetic Equity & Index Strategy - North America
CBO-Monthly Budget Review for April 2013
May 7, 2013--The federal government ran a budget deficit of $489 billion in the first seven months of fiscal year 2013 (that is, from October 2012 through April 2013), according to CBO's estimates.
That amount is $231 billion less than the shortfall recorded during the same period last year, primarily because revenue collections have been much greater than they were at this point in 2012. In contrast, federal spending so far this year has been slightly lower than what it was last year at this time.
view the CBO Monthly Budget Review for April 2013
Source: Congressional Budget Office (CBO)
IMF Regional Economic Outlook: Western Hemisphere-Latin America and the Caribbean
May 6, 2013--Growth in Latin America is set to pick up to about 3½ percent in 2013, broadly in line with potential. The region continues to benefit from favorable external financing conditions and relatively high commodity prices, but these tailwinds are unlikely to last forever.
The key challenges for policymakers today are preserving macroeconomic and financial stability, and building strong foundations for sustained growth in the future. More prudent fiscal policy would help ease pressure on capacity constraints, mitigate the widening of current account deficits, and prepare the economies better to deal with adverse external shocks. Exchange rate flexibility and prudential measures should continue to be used to discourage speculative capital flows. Sustaining strong output growth will require structural reforms to raise productivity growth.
view the IMF Regional Economic Outlook: Western Hemisphere-Latin America and the Caribbean
Source: IMF
DB-Synthetic Equity & Index Strategy-North America-US ETF Trade Alert-Adjusting your Dividend ETF positions
Understanding the risks in your Dividend ETF positions
May 6, 2013--Some dividend strategies seem crowded, expensive and too exposed to defensives. We prefer growth over yield, or a more selective approach to yield.
Dividend Yield seems crowded according to our DB Quant colleagues
Although crowded doesn’t mean that the trade is going to underperform right away, it does pose a risk in the case that a market shock pushes investors out of the trade at the same time. (See Cahan et al, 3 May 2013)
Dividend Yield ETFs are expensive and more concentrated on defensives
We believe that dividend ETFs with focus on dividend growth or payment, trading cheap, and with less exposure to defensives provide protection against a rotation away from defensives or investors exiting the yield trade all at once.
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Source: Deutsche Bank - Synthetic Equity & Index Strategy - North America
DB-Synthetic Equity & Index Strategy-North America-US ETF Model Portfolios-House View Portfolio Update
May 6, 2013--House View Update as of May 3rd, 2013
Positioning for the summer. Dividend growth, Banks, Tech, and duration boost.
Market Performance
Since the launch of our House View portfolio (HVP) on October 2, 2012, the US equity market (SPY) and the US Fixed Income market (BND) are up by 13.09% and 0.57%, respectively; while the Commodity market (DBC) has lost 8.01%.
Model Performance
Our HVP is up by 7.21% since its launch, and 3.47% higher since the last rebalancing on Mar 6, 2013. In the meantime, the equity market and our multi asset class benchmark are also up by 13.09% and 4.95% since the launch of our HVP, respectively.
Portfolio Updates and New Membership
Four new positions to equity and one to credit. Equity positions: one on dividend growth, two sector tilts, and one international. Credit position: long duration high yield. Positions funded by replacement of dividend and high yield positions, and reductions in China, US large caps, and US Divs. (Figure 2).
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Source: Deutsche Bank - Synthetic Equity & Index Strategy - North America
Direxion Appoints Patrick Rudnick As Chief Financial Officer
May 6, 2013-- Direxion, a leader in alternative investment solutions, announces that Patrick Rudnick has been appointed Chief Financial Officer of Direxion.
Mr. Rudnick was most recently a Vice President in the Fund Administration division of U.S. Bancorp Fund Services, where he oversaw the fund servicing operations including financial reporting, compliance, board reporting and expense oversight for Direxion Funds and Direxion Shares, and other clients for several years.
In his new role, Mr. Rudnick will report to Eric Falkeis, Chief Operating Officer of Rafferty, and oversee the financial, compliance, and risk oversight aspects of Direxion's business. He will also join Direxion's senior planning team.
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Source: Wall Street Journal
S&P 500 Buyback Index Launched by S&P Dow Jones Indices
May 6, 2013-- S&P Dow Jones Indices announced today the launch of the S&P 500(R) Buyback Index which is designed to measure the performance of the top 100 stocks with the highest buyback ratio in the S&P 500.
"Buybacks can be seen as an important indicator of corporate health," says
Vinit Srivastava, Senior Director of Strategy Indices at S&P Dow Jones
Indices. "Much like dividends, corporate buybacks is another method that companies use to return value back to shareholders. In 2012, S&P 500 companies bought back $399 billion worth of stock, and continue to hold record amounts of cash."
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Source: Bloomberg
U.S. Department of the Treasury Economic Statistics-Monitoring the Economy Update
May 6, 2013-- The U.S. Economic Statistics- Monthly Data has been updated and is now available.
view the U.S. Economic Statistics- Monthly Data Update
Source: US Department of the Treasury
