Americas ETP News
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First Trust Files with the SEC
June 25, 2012--First Trust has filed a registration statement with the SEC for the Multi-Asset Diversified Income Index Fund.
view filing
Source: SEC.gov
CFTC Approves Notice of Proposed Rulemaking Prohibiting the Aggregation of Orders to Satisfy Minimum Block Sizes or Cap Size Requirements
Proposed Rulemaking also Establishes Eligibility Requirements for Parties to Block Trades
June 25, 2012--The Commodity Futures Trading Commission (CFTC) has approved for publication in the Federal Register a Notice of Proposed Rulemaking that re-proposes adding certain provisions to Part 43 of the Commission's Regulations pertaining to block trades in swap contracts.
The provisions contained in the proposed rulemaking would:
Prohibit the aggregation of orders for different trading accounts in order to satisfy the minimum block size or cap size requirements, except for orders aggregated by certain commodity trading advisors, investment advisers and foreign persons, if such qualifying persons have more than $25,000,000 in total assets under management;
Provide that parties to a block trade must individually qualify as eligible contract participants, except where a designated contract market allows certain commodity trading advisors, investment advisers and foreign persons to transact block trades for customers who are not eligible contract participants, if such qualifying commodity trading advisor, investment adviser or foreign person has more than $25,000,000 in total assets under management; and
Require that persons transacting block trades on behalf of customers must receive prior written instructions or consent from the customer.
Morgan Stanley-US ETF Weekly Update
June 25, 2012--US ETF Weekly Update
Weekly Flows: $1.4 Billion Net Outflows
ETF Assets Stand at $1.1 Trillion, up 9% YTD
Five ETF Launches Last Week
Global X Announces Changes to Canada ETF
US-Listed ETFs: Estimated Flows by Market Segment
ETFs posted net outflows of $1.4 bln last week, giving back a small portion of the prior week’s net inflows
Last week’s flows were primarily driven by US Large-Cap ETFs (specifically SPDR S&P 500 ETF had net outflows of $3.8 bln)
Emerging Market Equity ETFs exhibited net inflows of $1.1 bln last week, the most out of any category
ETF assets stand at $1.1 tln, up 9% YTD; ETFs have posted net inflows 19 out of 25 weeks YTD ($71.5 bln in net inflows)
13-week flows were mixed among asset classes; combined $24.3 bln net inflows
Fixed Income ETFs have consistently generated weekly net inflows (45 straight weeks of net inflows totaling $57.0 bln)
Global ETFs exhibited net inflows of $2.6 bln over the last 13 weeks; this comes as a surprise to us as pure international ETFs
have struggled gaining new money over this time period
US-Listed ETFs: Estimated Largest Flows by Individual ETF
Vanguard MSCI Emerging Markets ETF (VWO) generated net inflows of $583 mln last week, most of any ETF
Despite exhibiting flat returns this year, VWO has produced net inflows of $7.5 bln YTD, also the most of any ETF
Seven out of 10 ETFs to post the largest net outflows last week were US Equity based
US-Listed ETFs: Short Interest
Data Unchanged: Based on data as of 5/31/12
SPDR S&P 500 ETF (SPY) posted the largest increase in USD short interest
For the 2nd consecutive period, SPY’s USD short interest increased and SPY’s shares short are at their highest level since 3/15/12
The SPDR Retail ETF (XRT), the most heavily shorted ETF as a % of shares outstanding, exhibited a $540 mln decline in USD
short interest over the prior period, the most of any ETF
The average shares short/shares outstanding for ETFs is currently 5%
XRT’s shares short as a % of shares outstanding declined to 329% from 376% from the prior period
Based on multiple borrowings and the ability to continuously create new shares, shares short as a % of shares outstanding can exceed 100% (only nine 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 6/22/12 based on daily change in share counts and daily NAVs.
$6.7 billion in total market cap of ETFs less than 1-year old
Over the past 13 weeks, newly launched Active ETFs generated most net inflows at $1.3 bln (specifically the PIMCO Total
Return ETF-BOND)
108 new ETF listings and 17 closures YTD
Over the past year, many of the successful launches have an income/dividend orientation
Five different ETF sponsors and three asset classes represented in top 10 most successful launches
Three recently launched iShares Minimum Volatility Equity ETFs (ACWV, USMV, EEMV) posted combined net inflows of $260 mln last week
Top 10 most successful launches account for 64% of market cap of ETFs launched over the past year
request report
Source: Morgan Stanley
Alps files with the SEC
June 22, 2012--Alps has filed a post-effective amendment, registration statement with the SEC for the NYSE Arca U.S. Equity Synthetic Reverse Convertible Index Fund (RVCT).
view filing
Source: SEC.gov
GreenHaven files with the SEC
June 22, 2012--GreenHaven has filed a FORM S-1 with the SEC for the GreenHaven Coal Index Fund.
view filing
Source: SEC.gov
Vanguard's Sauter to retire at year-end
Tim Buckley, head of retail investor group, is replacement
Sauter directs groups overseeing $1.6 trillion in assets
Departs after 25 years at the company
June 22, 2012--Gus Sauter, the long-time chief investment officer at Vanguard Group, the largest U.S. mutual fund company, will retire at the end of the year, the company said on Friday.
Sauter, 57, will be replaced by Tim Buckley, 43, a managing director at Vanguard, based in Valley Forge, Pennsylvania. Sauter currently directs Vanguard's global investment management groups, which oversee $1.6 trillion in aggregate assets.
"Vanguard has become a much deeper organization and had grown quite a bit so I do not think his departure will represent the same kind of challenge as it would have 10 years ago," said Russel Kinnel, director of mutual fund research at Morningstar Inc.
read more
Source: Reuters
Options Trading: Dangers of Rolling Covered Calls
June 22, 2012--Most covered call writers know how to roll a covered call to avoid or defer exercise. But this can create unintended losses or even have serious tax consequences.
In rolling a covered call that's approaching the money or has gone in the money, the strategy is straightforward:
1. Close the current call with a "buy to close" order.
2. Open a new covered call expiring later with a "sell to open order. This will produce additional net income due to the later expiration, thus higher time value.
Ideally, if you can close the current position and open another at a later-expiring higher strike, you have two benefits. First, you escape exercise of the original short position while generating extra income. Second, if you can up the strike, you create more potential profits if that call is eventually exercised.
read more
Source: FT Press
CFTC.gov Commitments of Traders Reports Update
June 22, 2012--The current reports for the week of June 19, 2012 are now available.
view updates
Source: CFTC.gov
iShares files with the SEC
June 22, 2012--iShares has filed a post-effective amendment, registration statement with the SEC for the iShares 10+ Year Credit Bond Fund (CLY).
view filing
Source: SEC.gov
Exchange Traded Concepts files with the SEC
June 21, 2012--Exchange Traded Concepts has filed a post-effective amendment, registration statement with the SEC. This Post-Effective Amendment No. 23 relates solely to the Sustainable North American Oil Sands ETF.
view filing
Source: SEC.gov
