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Mutual fund review: Exchange-traded funds surge in popularity
January 10, 2011--A popular financial maxim warns against investing in things you don't understand.
But one of the mutual fund industry's fastest-growing investment options is also poorly understood by investors.
That option — exchange-traded funds — caught fire in 2010. Thanks to a flood of new money from investors, plus rising stock prices, the value of assets in ETFs surged 43% last year, topping $1 trillion for the first time, according to research firm Morningstar Inc.
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Source: Los Angeles Times
ELX Sets New End-Of-Day Total Market Share Record in U.S. Treasury Futures
January 10, 2011-- ELX Futures, L.P. (ELX), a leading electronic futures exchange, announced today that it has established a new end-of-day (3 p.m. EST) trading record for total market share in its U.S. Treasury futures contracts, with an electronic share at 5% on January 10, 2011.
Today's milestone of 5% market share in U.S. Treasuries follows last week's remarkable performance in achieving new market share and volume records to kick off the New Year. Last week, new records were set for U.S. Treasury futures for single day volume, market share (broken by today's performance), and open interest.
Neal Wolkoff, Chief Executive Officer of ELX Futures, said, "A new week and a new milestone for ELX. We are pleased to have achieved a 5% market share in our U.S. Treasury futures contracts. This is a very important number and we are proud to see all our hard work, dedication and business initiatives pay off. We will continue to compete aggressively to attract more market participants to our exchange and provide the best technology and services to our growing customer base."
Source: ELX Futures
Global X files with SEC
January 10, 2011--Global X has filed a post-effective amendment, registration statement for
Global X Russell Emerging Markets Growth ETF (EMGX) and
Global X Russell Emerging Markets Value ETF(EMVX)
view filing
Source: SEC.gov
First Trust files with the SEC
January 7, 2011--First Trust has filed an amended application for exemptive relief with the SEC.
view filing
Source: SEC.gov
Van Eck files with the SEC
January 7, 2011--Van Eck has filed a post-effective amendment, registration statement with the SEC for
Market Vectors CM Commodity Index ETF.
view filing
Source: SEC.gov
Standard & Poor's Announces Changes In The S&P/TSX Venture Composite Index
January 6, 2011--Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Friday, January 7, 2011:
Strathmore Minerals Corp. (TSXVN:STM) will be removed from the index.
The company will graduate to trade on the TSX under the same ticker symbol.
Company additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the company.
Source: Standard & Poors
CFTC.gov Commitments of Traders Reports Update
January 6, 2011--The current reports for the week of January 4, 2011 are now available.
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Source: CFTC.gov
One Fund® ETF Surpasses $10 Million Assets Under Management
January 6, 2011--U.S. One, Inc., issuer of the One Fund® Exchange Traded Fund (ETF), has surpassed $10 million assets under management.
"We achieved the $10M AUM milestone in eight months, which is remarkable for an inaugural ETF from a start up firm. We attribute our success to our investment philosophy and approach, our product position in a crowded industry and to our growing adoption among financial advisors and individual investors as a low cost, globally diversified ETF," states Paul Hrabal, Chief Investment Officer for One Fund®.
U.S. One, Inc. advocates a passive index-based approach to global investing. "We do not believe anyone can successfully pick winning stocks, winning sectors or winning geographies over the long haul. Our firm instead focuses on buying the entire market worldwide at the lowest possible cost to achieve a shareholder return that closely tracks the global market," comments Hrabal. In a recent study, just 0.6% of stock picking mutual funds beat the market over a 32 year period.1
The ETF market making community has also been instrumental to the Fund's success. Unlike some new ETFs that have launched recently, One Fund® has consistently traded very close to its underlying value. This has reduced the transaction costs for shareholders buying and selling One Fund® shares. An industry publication recently commented, "In general, One Fund® has been quite effective in keeping the deviation of the (Fund's) market price to NAV down to a minimum, especially relative to other active ETF peers."2
Source: Foreside Fund Services, LLC
BNY Mellon ADR Index Monthly Performance Review is Now Available
January 6, 2011-The BNY Mellon ADR Index Monthly Performance Review is now available
view review
Source: BNY Mellon
US Institutional Equity Trading 2010—2011: Outflows, Outrage, and Balance
January 6, 2011--Executive Summary
US equity managers witnessed a challenging market environment in 2010 that once again impacted long term performance and reduced investor confidence. Focused attention on high-frequency trading, market structure challenges, and lower fee investment alternatives all contributed to new concerns. Looking back, it is fair to say the 2010 equity markets will be remembered unfavorably.
Specifically, 2010 will be remembered as the “Year of the Flash Crash”. Data shows the months of May and June were the most active due to higher volatility and increased selling pressures. Preventing another major market disruption is important to restoring confidence, but is not the only action being taken. New investments into front office capability are being made to address markets that are more complex, increasingly fragmented, and much faster.
A number of buy-side firms are spending more time and money on figuring out new ways to remove trading inefficiencies. They are looking for new ways to improve electronic trading capabilities and leveraging existing relationships to increase their opportunity for receiving best execution. Although there are some that feel they have reached a point of automation saturation, the majority of the buy side will be careful about investing any additional money into equity trading desks until conditions improve or volatility picks up again.
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Source: TABB Group
