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Morgan Stanley-US ETF Weekly Update
July 18, 2011--US ETF Weekly Update
Weekly Flows: $1.4 Billion Net Outflows
ETF Assets at $1.1 Trillion, Up 9% YTD
Launches: 6 New ETFs
No ETF News Highlights This Week
US-Listed ETFs: Estimated Flows by Market Segment
Despite net inflows for most asset classes, ETFs exhibited net outflows of $1.4 billion last week
US equity ETFs experienced aggregate net outflows of $5.3 bln last week
Commodity ETFs posted the largest net inflows last week ($1.8 bln); $2.4 bln net outflows over past 13 weeks
ETF assets stand at $1.1 trillion, up 9% YTD; we estimate from both net new money and market appreciation
13-week flows remained mostly positive among asset classes; combined $28.4 bln net inflows
US Large-Cap up $6.7 bln versus US Small- & Micro-Cap down $2.7 bln over the past 13 weeks
We estimate ETFs have generated net inflows 17 out of 28 weeks YTD; YTD net inflows of $66.6 bln
US-Listed ETFs: Estimated Largest Flows by Individual ETF
SPDR Gold Trust (GLD) generated net inflows of $1.5 bln last week, the most of any ETF
All of the top 10 ETFs to post net outflows last week were US equity focused (six broad market ETFs, three
sector ETFs, one leveraged inverse ETF)
Over the past 13 weeks, the iShares Russell 2000 Index Fund (IWM) posted the largest net outflows ($1.8 bln)
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Source: Morgan Stanley
Claymore Investments, Inc. sees Assets Under Management surpass $6.5 billion
Claymore's AUM has grown by 46% over the past 12 months
July 18, 2011--Today Claymore Investments, Inc. (Claymore) announced that the firm's assets under management (AUM) have exceeded $6.5 billion, as of June 30, 2011. Claymore's AUM has grown by a remarkable $2 billion over the past year.
"When we introduced our first ETF in Canada six years ago our mission was to make investing cheaper and better for Canadians. We have accomplished this by building an ETF lineup with products that are low cost, but also follow intelligent and disciplined investment strategies, giving investors greater value for the fees," said Som Seif, President and CEO, Claymore Investments Inc. "Given our impressive growth that we have seen in AUM, it is clear that Canadians have enthusiastically embraced Claymore ETFs, helping us become one of the fastest firms in history to grow to over $6 billion in such a short period of time."
Unlike ETFs that track traditional market-cap based indices, Claymore ETFs track indices that seek to best capture the investment potential of the asset class or market they are invested in. Each product is designed with research partners and institutional asset managers to utilize what we believe are the best-in-class investment strategies for the specific asset class. Claymore's ETF lineup covers the Canadian, US, and global core equity markets, sector strategies, dividend and income-based strategies, fixed income and commodity based strategies.
Source: Claymore
Citi Appointed to Provide Securities and Fund Services to Support the Launch of the First ETF in Colombia
July 18, 2011--Citi announced today that it has been appointed administrator, custodian, transfer agent and creation agent for the first exchange traded fund (ETF) in Colombia. The iShares(R) COLCAP ETF tracks the COLCAP Index, a market cap weighted index of the 20 most liquid stocks listed on the Colombia Securities Exchange, Bolsa de Valores de Colombia (BVC).
The fund was launched as part of the strategy to develop the Colombian Capital Markets and to introduce ETF products.
Citi provides custody, asset servicing, fund administration, fund accounting, valuation, performance and compliance monitoring, transfer agency as well as creation agent services and BlackRock performs the portfolio management and marketing functions.
"We were pleased to partner with Citi to help us define regulatory changes required for developing a successful ETF market in Colombia," said Juan Pablo Cordoba, President of Bolsa de Valores de Colombia. "With Citi's knowledge of the specialized needs of ETFs and local market presence, we readily had the infrastructure in place to support the launch of the first ETF product in Colombia."
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Source: Citi
Exchange Traded Concepts Introduces the First ETF Platform Dedicated Solely to Private Label Funds
ETF-in-a-Box™ turnkey solution provides an accelerated, low-cost means to bring new ETFs to market
July 18, 2011--)--Exchange Traded Concepts (ETC) has launched its new platform, designed to be the fastest and least expensive method for interested parties to bring an ETF to market. The complete turnkey solution is an innovative approach to address the legal and financial hurdles that often limit the flow of new funds coming to market.
Exchange Traded Concepts’ ETF-in-a-Box™ platform enables investment managers, independent advisors, foreign managers and others launch an ETF for their strategy in as little as 75 days, while potentially saving millions in start-up costs. Interested sub-advisors can utilize this turnkey service or create a customized solution with Exchange Traded Concepts.
The company intends to file several private label ETFs in the coming weeks, showcasing the market demand for an inexpensive and efficient method to launch ETFs.
“It currently takes between 12 and 36 months to receive the necessary regulatory approvals to establish a new ETF family. First mover advantage in ETFs has proven critical in capturing market share, and this loss of time could represent the difference between a successful launch and a missed opportunity,” says J. Garrett Stevens, CEO of Exchange Traded Concepts. “The ETF-in-a-Box™ platform is designed to allow managers with cutting edge investment strategies to spend their capital on growth initiatives instead of significant legal and set-up costs.”
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Source: Exchange Traded Concepts
Van Eck files with the SEC
July 18, 2011--Van Eck has filed a post-effective amendment, registration statement with the SEC for the Greater China High Yield Bond ETF.
view filing
Source: SEC.gov
Van Eck files with the SEC
July 18, 2011--Van Eck has filed a post-effective amendment, registration statement with the SEC for the Greater China Corporate Bond ETF.
view filing
Source: SEC.gov
Tools to Avoid the Pitfalls of ETFs
July 18, 2011--A wealth manager earlier this year bought some exchange-traded funds on behalf of a client, and got chatting to the sponsor at a conference.
To his horror, he learnt he had unwittingly bought a synthetic ETF underpinned by a swap, breaking a legal agreement with his clients not to deal in derivatives. He rushed out of the event to cancel the trade. If such a mix-up is possible among investment professionals, investors are unlikely to be aware of the myriad risks and rewards in the ETF industry. Confusion even results from the brand, with ETF being loosely used as an umbrella term for a variety of products, including structured notes. As a preparation for guarding against possible surprises, here follows a short guide to factors that investors should consider before incorporating ETFs in their portfolio.
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Source: Financial News
Maple Group Update on Regulatory Process
July 18, 2011-Maple Group Acquisition Corporation ("Maple"), a corporation whose investors comprise 13 of Canada's leading financial institutions and pension funds, reported on developments on the regulatory process for its proposed acquisition of the TMX Group and subsequent acquisitions of CDS and Alpha Group.
Maple filed its pre-merger notification filings with the Competition Bureau on June 16 and today received Supplemental Information Requests, indicating that the Bureau requires additional information in order to complete its review of the proposed transactions. The Supplemental Information Requests were expected given the scale and scope of the proposed transactions. Maple will continue to work with the Competition Bureau in the usual course through its ongoing review.
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Source: Maple Group Acquisition Corporation
US muni market braced for busiest week of year
July 18, 2011--The US municipal bond market where US states, cities and other local bodies raise money is braced for what could be its biggest week this year with nearly $10bn of new issuance expected.
Over the last few months, new bond sales have been rising as the market has been healing from a period of turmoil at the start of the year. Fears of widespread defaults in the aftermath of the US recession have begun to ease and buyers have returned to the market.
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Source: FT.com
Schwab suffers as investors stay cautious
July 18, 2011--US retail investors put more money to work in the market in the second quarter, but they are still avoiding risk by trading little and investing mostly in bond funds, Charles Schwab, the largest US discount brokerage, said as it reported earnings.
Schwab on Monday said earnings improved for the quarter thanks to a boost in fund flows, but its trading levels could herald depressing results from other brokerages. Increasing worry about the state of the US and global economy have caused active investors to pull back, leading to a sharp decline in volatility and volumes across asset classes.
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Source: FT.com
