Americas ETP News
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Brazil Signals Interest Rates to Stay at Record for Long Period
October 10, 2012--Brazil's central bank signaled it will keep borrowing costs at a record low for an extended period as President Dilma Rousseff's administration struggles to revive the economy amid slowing global growth.
In a split decision yesterday, the bank’s eight-member board cut the Selic rate by a quarter point to 7.25 percent, as forecast by 35 of 73 economists surveyed by Bloomberg. The bank said keeping monetary conditions stable for a “sufficiently prolonged period” was the best strategy for balancing inflation risks stemming from a recovery in domestic activity with continued “complexity” in the global economy. Three dissenting members favored leaving borrowing costs unchanged.
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Source: Bloomberg BusinessWeek
DB-Global Equity Index and ETF Research-North America-US ETF Weekly Research-Equity inflows keep fueling ETP AUM growth towards $1.3 trillion
October 9, 2012--Net Cash Flows Review
Markets retreated during last week, following a two-week rally. The US (S&P 500) fell by 0.38%. While, outside the US, the MSCI EAFE (in USD) and the MSCI EM (USD) dropped by 0.87% and 0.71%, respectively. Moving on to other asset classes, the 10Y US Treasury Yield fell by 10bps last week; while the DB Liquid Commodity Index was down by 3.64%.
Similarly, the Agriculture sector (DB Diversified Agriculture Index), the WTI Crude Oil and Silver dropped by 3.35%, 6.17% and 0.38%, respectively; meanwhile Gold rose by 0.15%. Last but not least, Volatility (VIX) dropped by 3.65% during the same period.
The total US ETP flows from all products registered $4.2bn of inflows during last week vs. $7.72bn of inflows the previous week, setting the YTD weekly flows average at +$3.4bn (+$134.9bn YTD in total cash flows).
Equity, Fixed Income, and Commodity ETPs experienced flows of +$2.25bn, +$0.97bn, +$1.14bn last week vs. +$6.58bn, +$1.04bn, +$0.09bn in the previous week, respectively.
Within Equity ETPs, Large Cap products had the most inflows (+$1.7bn); while Mid Cap and Small Cap products had the largest outflows of $0.8bn and $0.6bn, respectively. Within Fixed Income ETPs, Sub-Sovereign products had the largest inflows (+$0.8bn); while Sovereign products experienced the only outflows (-$0.7bn). Within Commodity ETPs, Precious Metals products experienced inflows of $1.0bn; most of them driven by Gold ETPs.
Top 3 ETPs & ETNs by inflows: IVV (+$1.2bn), SPY (+$1.1bn), GLD (+$0.7bn)
Top 3 ETPs & ETNs by outflows: IJH (-$0.9bn), QQQ (-$0.7bn), IWM (-$0.7bn)
New Launch Calendar: Market neutral alternative
There was 1 new Alternative ETF listed during the previous week. The new product, a fund-of-funds from IndexIQ was listed in the NYSE Arca and offers access to a market neutral strategy that seeks to minimize exposure tosystematic risk.
Turnover Review: Floor activity remains unchanged
Total weekly turnover decreased by 0.8% to $262bn vs. $264bn from the previous week. Last week's turnover level was 31% below last year's weekly average. Equity and Commodity ETPs turnover decreased by $3.2bn (1.4%) to $224.5bn, and $0.8bn (4.8%) to $15.6bn, respectively; meanwhile, Fixed Income ETPs turnover increased by $2.5bn (14.7%) to $19.5bn vs. $17.0bn the previous week.
Assets under Management (AUM) Review:
ETP assets nearing $1.3 trillion
US ETPs assets keep trending higher and are now just $0.7bn away from reaching the $1.3 trillion mark. As of last Friday, US ETPs have accumulated an asset growth of 24.2% YTD. Assets for equity, fixed income and commodity ETPs moved +$13.1bn, +$1.0bn, +$1.5bn during last week, respectively.
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Source: Deutsche Bank - Global Equity Index and ETF Research - North America
Gross's ETF Soars to $3 Billion Outperforming Mutual Fund
October 9, 2012--Bill Gross's Total Return Exchange- Traded Fund (BOND) reached $3 billion in assets in about seven months as it outperformed the world's largest mutual fund, which follows a similar strategy.
Pimco Total Return ETF, which started trading on the NYSE Arca exchange on March 1, had $3.01 billion in net assets as of yesterday’s close, according to Pacific Investment Management Co.’s website. The fund has advanced 10.4 percent since inception through yesterday’s close, compared with the 6.5 percent return for Gross’s $278 billion Total Return Fund, according to data compiled by Bloomberg. read more
Source:Bloomberg
Van Eck files with the SEC
October 9, 2012--Van Eck has filed a post-effective amendment, registration statement with the SEC. This filing relates solely to the following series of the Registrant: Market Vectors Gaming ETF.
view filing
Source: SEC.gov
Van Eck files with the SEC
October 9, 2012--Van Eck has filed a post-effective amendment, registration statement with the SEC. This filing relates solely to the following series of the Registrant: Market Vectors Coal ETF.
view filing
Source: SEC.gov
ISE Announces Launch of Two New Wealth Indexes
Horizon Kinetics and ISE Debut the Asia ex-Japan Wealth Index and the Global Wealth Index
October 8, 2012--The International Securities Exchange (ISE) today announced the launch of two new indexes in collaboration with Horizon Kinetics: the Horizon Kinetics ISE Asia ex-Japan Wealth IndexTM (Ticker: WEALTHAX), which tracks publicly-held companies that are managed by some of the wealthiest individuals in Asian countries excluding Japan;
and the Horizon Kinetics ISE Global Wealth Index(TM) (Ticker: WEALTHGL), which tracks the performance of publicly-held companies that are managed by some of the wealthiest individuals in the world.
The new wealth indexes include companies led by individuals who have demonstrated superior track records and industry knowledge, and have used their respective companies as the primary means of accumulating substantial personal wealth. Well-known component companies of the Asia ex-Japan Wealth Index include Cheung Kong Holdings Limited (Ticker: 1 HK) and Want Want China Holdings Limited (Ticker: 151 HK), led by Li Ka-shing and Tsai Eng-Meng, respectively, two of the wealthiest individuals in Asia. Likewise, the Global Wealth Index includes companies such as LVMH Moet Hennessy Louis Vuitton S.A. (Ticker: MC FP) and Noble Group Limited (Ticker: NOBL SP), led by Bernard Arnault and Richard Elman, respectively, two of the wealthiest individuals in the world. These latest indexes add to the growing suite of wealth indexes created by ISE and Horizon Kinetics and follow last month’s launch of the Virtus Wealth Masters Fund (Tickers: VWMAX, VWMCX, VWMIX), the first mutual fund to track the Horizon Kinetics ISE Wealth Index (Ticker: RCH).
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Source: International Securities Exchange (ISE)
Institutional investors accounted for largest share of ETF trading on BM&FBOVESPA in September
October 8, 2012--Institutional investors accounted for 30.8% of the total volume of exchange-traded funds traded on BM&FBOVESPA in September. Financial investors ranked second with 29.8%, followed by foreign investors with 23.9%, individual investors with 13.2% and private- or public-sector corporations with 2.2%.
iShares Ibovespa Fundo de Índice (BOVA11) was the most traded ETF on BM&FBOVESPA in September, accounting for 93.3% of the total trading volume in all the ETFs available on the Exchange.
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Source: BM&FBOVESPA
Thomson Reuters and BlackRock Launch New Fixed Income Derived Analytics to Support Risk Management of Fixed Income Portfolios
October 8, 2012--Thomson Reuters, the world's leading source of intelligent information for businesses and professionals and BlackRock, Inc., a leader in investment and risk management, today announced an agreement to create and distribute a set of fixed income derived analytics from BlackRock Solutions(R), which provides risk analytics, investment systems and advisory services.
Performing valuation and risk analysis on complex fixed income instruments can be a costly and time consuming process. Thomson Reuters Fixed Income Derived Analytics powered by BlackRock Solutions meets a real market need as managers continue to contend with the deluge of risk, compliance and cost issues. For many financial institutions, these new derived analytics could save an enormous amount of work and expense compared to the investment and ongoing costs associated with building and managing an analytics process in-house.
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Source: BlackRock
Morgan Stanley-US ETF Weekly Update
October 8, 2012--US ETF Weekly Update
Weekly Flows: $4.2 Billion Net Inflows
ETF Assets Stand at $1.3 Trillion, up 26% YTD
One ETF Launch Last Week
Vanguard Announces Index Changes
Russell Closes Two ETFs Early
US-Listed ETFs: Estimated Flows by Market Segment
ETFs posted net inflows of $4.2 bln last week, the tenth consecutive week of net inflows
Longest streak of net inflows since the second half of 2010 (11 straight weeks of net inflows from 8/30/10-11/12/10)
US Large-Cap Equity and Commodity ETFs posted a combined $3.1 bln in net inflows (top two categories we measured)
ETF assets stand at $1.3 tln (up 26% YTD) and have posted net inflows 32 out of 40 weeks in 2012 ($134.0 bln YTD)
13-week flows were mostly positive among asset classes; combined $55.7 bln net inflows
Fixed Income ETFs have posted net inflows 58 out of the past 60 weeks, including $10.4 bln over the past 13 weeks
Currency ETFs were the only category to exhibit net outflows over the last 13 weeks ($288 mln in net outflows); notably,
Currency ETFs were the only category to exhibit net outflows YTD as well ($2.2 bln in net outflows)
US-Listed ETFs: Estimated Largest Flows by Individual ETF
iShares S&P 500 Index Fund (IVV) generated net inflows of $1.2 bln, the most of any ETF
Notably, three products (IVV, SPY, SSO) that track the S&P 500 Index posted large net inflows last week (combined $2.8 bln)
Over the last 13 weeks, Treasury-specific ETFs have generated some of the largest net outflows ($2.7 bln); last week was no different as the iShares Barclays TIPS Bond Fund (TIP) and iShares Barclays 20+ Year Treasury Bond Fund (TLT) posted a combined $793 mln in net outflows
US-Listed ETFs: Short Interest
Data Unchanged: Based on data as of 9/14/12
SPDR Gold Trust (GLD) had the largest increase in USD short interest at $857 mln
Despite posting net inflows for nine straight weeks and exhibiting strong market returns, GLD’s shares short climbed to their
second highest level of 2012
Aggregate ETF USD short interest increased by $3.7 bln over the past two weeks ended 9/14/12
The average shares short/shares outstanding for ETFs is currently 4.9%
Smaller ETFs by market cap may skew the results (4 of the top 10 with the highest % of shares short have market caps <$30 mln)
Both the euro and Yen ETFs are among the most heavily shorted despite exhibiting low correlations and often being used to express opposing views
Based on multiple borrowings and the ability to continuously create new shares, shares short as a % of shares outstanding can exceed 100% (only six ETFs exhibited shares short as a % of shares outstanding greater than 100%)
US-Listed ETFs: Most Successful Recent Launches by Assets
Source: Bloomberg, Morgan Stanley Smith Barney Research.
Data estimated as of 10/5/12 based on daily change in share counts and daily NAVs.
$9.0 billion in total market cap of ETFs less than 1-year old
Newly launched Active ETFs generated the largest 13-week net inflows at $1.3 bln (PIMCO Total Return ETF-BOND had the largest net inflows in the space at $1.1 bln over the period)
131 new ETF listings and 46 closures YTD (additional 27 liquidations have been announced)
Over the past year, many of the successful launches have an income/defensive orientation
Five different ETF sponsors and two asset classes represented in top 10 most successful launches
The iShares AAA-A Rated Corporate Bond Fund (QLTA) had a surge in assets last week, generating net inflows of $275 mln (QLTA only has a market cap of $298 mln)
Top 10 most successful launches account for 73% of market cap of ETFs launched over the past year
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Source: Morgan Stanley
DB-Global Equity Index and ETF Research-US ETF Market Monthly Review-ETP AUM added $67bn driven by impressive inflows of $37bn
October 5, 2012--US ETP assets at all-time highs
ETP assets in the US rose by $66.9bn to $1.28 trillion last month, reaching a new all-time high and boosting AUM growth to a decent 22.7% growth on a YTD basis.
Global ETP industry assets rose to $1.75 trillion, or 22.0% up YTD.
Risk-on trade back on the table
US ETP flows experienced inflows of $37.3bn during September (+$130.7bn, 12.5% of last year’s AUM).
Within long-only ETPs, total flows were +$37.3bn in September vs. +$3.6bn in August.
Equity, Fixed Income, and Commodity long-only ETPs experienced cash flows of +$31.1bn, +$3.0bn, and +$3.0bn, respectively.
Contrary to the apparent disconnect we saw between returns and flows in August, September marked a clear comeback to risk. Risky assets experienced significant rallies, and flows were consistent with the market trends.
The risk-on trade was clearly described by the long-only ETP flows demographics. We saw very strong flows into equities, with most going into the US (+$23bn), but also spreading significantly into EM ETPs +$4.6bn). Sector allocations favored Cyclicals (+$4.8bn) over Defensives (+$0.6bn). High-beta segments such as small caps also saw significant inflows (+$3.6bn), while lower-beta categories such as Dividend ETPs saw less inflows than in recent months. Within Fixed Income, investors favored Corporates, especially HY credit, while they moved away from generally safer Sovereign debt positions. Gold had significant inflows, but this time they were driven by currency devaluation protection rather than by fear.
New Launch Calendar: adding new access and sophistication
There were five new ETFs and one ETN listed during the previous month.
Five of them were listed in the NYSE Arca, with the remaining one in the NASDAQ. The new products focus on equity allocations, but offer access to new segments and quantitative strategies.
ETP floor activity remains subdued
ETP turnover totaled $1.02 trillion last month, up 5.2% ($51.0bn) from the revious month’s figure of $0.97 trillion, and also 38% under last year’s monthly average of $1.65 trillion.
ETP trading made up 25.4% of all US cash equity trading in September, down from last year’s peak of 37.5% in August and still below its three year monthly average of 29.0%.
Equity and Commodity ETPs turnover rose by $36.3bn or 4.3% and $14.6bn (24.9%), respectively; meanwhile Fixed Income ETPs turnover fell 4.7% (-$3.3bn) during last month.
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http://pull.db-gmresearch.com/p/381-45BD/42457673/US_ETF_Market_Monthly_Review.pdf
Source: Deutsche Bank - Global Equity Index and ETF Research - North America
