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Morgan Stanley EXCHANGE-TRADED FUNDS: US ETF WEEKLY UPDATE
December 6, 2010--Weekly Flows: $216 Million Net Inflows
ETFs Traded $346 Billion Last Week
Launches: 7 New ETFs
Two Direxion ETFs Close
US-Listed ETFs: Estimated Flows by Market Segment
For the second straight week, ETFs generated net inflows ($216 million last week)
Net inflows in US Sector & Industry ETFs were offset by net outflows in US equity size segments (Large, Mid,
Small, Micro)
ETF assets stand at $969 bln; up 24% YTD
13-week flows were mostly positive among asset classes
$47.8 bln net inflows into ETFs over past 13 weeks (56% into EM & US Large-Cap Equity)
We estimate ETFs have posted net inflows 35 out of 48 weeks YTD
US-Listed ETFs: Estimated Largest Flows by Individual ETF
Energy Select Sector SPDR (XLE) posted net inflows of $1.1 bln last week, the most of any ETF
Amid a spike in oil prices, XLE generated large net inflows last week; YTD XLE’s flows have been volatile
For the third straight week, SPY posted net outflows; but over 13-wk period has taken in most new money
US-Listed ETFs: ETF Dollar Volume
Market share of monthly ETF volume as % of listed volume has nearly tripled over 5 yrs
Leveraged/Inverse accounts for 11% weekly ETF volume, but only has 3% of market cap
Fixed Income accounts for only 3% weekly ETF volume, but has 15% of market cap
request report
Source: ETF Research-Morgan Stanley
Impact investing could reach $1 trillion in 10 years: JP Morgan report
Investing in ‘bottom-of-the-pyramid’ could yield profits of hundreds of billions while focusing on social and environmental improvement.
December 6, 2010--Impact investing, which prioritises positive social and environmental impact over investment returns, could see new capital inflows ranging from $400bn to nearly $1 trillion in the next ten years as the ‘emerging asset class’ targets segments of the economy typically under-served by traditional business. A report by JP Morgan, the US bank, said impact investing merited the status of new asset class and estimated that it could generate potential profits ranging from $183bn to $667bn over the next ten years by investing in sub-sectors including agriculture, water, housing, education, health, energy and financial services (microfinance), notably in countries where people earn less than $3,000 annually.
This is referred to as the ‘bottom-of-the-pyramid’ approach (BoP), a phrase popularised in a 2004 book by Indian business professor C.K. Prahalad. The report was prepared for the Rockefeller Foundation, which supports the development of impact investing. JP Morgan looked at expected and realized returns from more than 1,000 investments collected by the Global Impact Investing Network, a lobby group, as the basis for its estimates.
view report-JP Morgan Impact Investments: An emerging asset class
Source: Responsible Investor
NSX Releases November 2010 ETF Data Reports; Assets Reach New Month End Record
December 3, 2010--Highlights from the November report include:
Assets in U.S. listed Exchange-Traded Funds (ETF) and Exchange-Traded Notes (ETN) reached a record of $947 billion at November 2010 month-end. This is an increase of approximately 26% over November 2009 month-end when assets totaled $752 billion.
ETF net cash inflows for the month totaled over $11 billion, bringing the year to date total to approximately $99.7 billion.
Total U.S. Equities and Total Global/Int'l Equities led all product categories with approximately $5.5 billion and $3.7 billion, respectively, in net cash inflows.
At November month-end, 482 ETFs/ETNs posted net cash inflows while 231 ETFs/ETNs posted net cash outflows
ETF/ETN notional trading volume during November 2010 totaled $1.46 trillion, representing 29% of all U.S. equity trading volume.
At the end of November 2010, there were 1092 listed products.
Visit http://www.nsx.com for more info.
Source: National Stock Exchange, Inc. (NSX)
CFTC.gov Commitments of Traders Reports Update
December 3, 2010--The CFTC.gov Commitments of Traders Reports for the for the week of November 30, 2010 have been updated and are now available.
view updates
Source: CFTC.gov
Innealta Capital's Tactical ETF Portfolios Added to the Ameriprise Financial Active Portfolios® Investments Platform
December 3, 2010--Innealta Capital, a leading asset manager specializing in the active management of Exchange Traded Funds (ETFs), announced today that its solutions will be included as part of Ameriprise Financial's Active Opportunity ETF Portfolios(SM) investment platform.
"Our solutions are rapidly being adopted by sophisticated financial advisors and high net worth clientele. Receiving the mandate from Ameriprise is another step forward in our plan for building a boutique provider of active investment management solutions for the needs of advisors and individual investors," said Jeff Montgomery, Chief Executive Officer of AFAM | Innealta Capital. "There has been a fundamental shift in what advisors and investors are demanding from professional money management firms in terms of growing and preserving wealth. Through the use of ETFs, our quantitative portfolios provide international and domestic exposure to fixed income and equities. Our solutions allow advisors and investors to think globally, and act tactically."
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Source: Innealta Capital
ETF Securities Launches New Physical White Metals Basket (WITE)
December 3 2010-- ETF Securities announced today that ETFS Physical White Metals Basket Shares will list on the NYSE Arca on December 3, 2010 trading under the ticker symbol WITE “White”.
Key highlights of WITE:
Unique offering: ETFS Physical WM Basket Shares (Ticker: WITE) will be the first US physically-backed ETP to exclusively hold silver, platinum and palladium in fixed weights. WITE complements the existing suite of products provided by ETF Securities, which continues to offer the broadest range of physically-backed precious metal ETPs in the US market.
White metals Basket: It is expected that WITE will appeal to those investors looking for a “one trade solution” to invest in all three precious metals as well as diversify their existing gold holdings.
Industrial Metal Play: It is expected that WITE may appeal to investors looking for a precious metals play more geared to the economic growth cycle.
Cost effective: The Sponsor’s Fee for WITE will be 0.60%(3). It is expected that the transaction costs for buying and selling the shares will be lower than purchasing, storing and insuring physical silver, platinum and palladium.
Liquid(6): The shares will trade on the NYSE Arca. The Trust structure allows for shares to be created and redeemed according to supply and demand in the market.
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Source: ETF Securities LLC
Brazil raises reserve requirements to avert bubble
December 3, 2010--Brazil on Friday moved to cool its economy and fight inflation by raising bank reserve requirements in a step designed to help it fight back in the global currency wars by curbing a local lending boom without hiking local interest rates already among the highest in the world.
The policy change, which follows similar moves by China last month, aims to contain the growth in Brazilian credit, which is expanding 20 per cent a year. Along with a spike in global food prices, the lending boom has helped push inflation above the government’s target of 4.5 per cent a year.
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Source: FT.com
iShares Launches Short-Term TIPS Exchange Traded Fund
Builds on iShares' Strong Fixed Income Offerings, Which Have Received the Most Net Flows of Any ETF Family Year-to-Date
December 3, 2010-- BlackRock, Inc. (NYSE: BLK) today announced that its iShares® Exchange Traded Funds (ETFs) business, the world's largest manager of ETFs, is launching the iShares Barclays 0-5 Year TIPS Bond Fund (NYSE Arca: STIP) on the NYSE Arca. The fund offers targeted exposure to the short end of the domestic Treasury Inflation Protected Security (TIPS) curve through TIPS with less than five years to maturity. The new fund is the only ETF that offers access to the very shortest end of the curve (zero to one year), and is intended to help investors seek protection against realized inflation, achieve additional portfolio diversification, or express a view on yields.
The new iShares Barclays 0-5 Year TIPS Bond Fund expands the iShares fixed income offering to 33 ETFs, which have seen a high level of interest in 2010 as investors seek income, a hedge against inflation and more precise fixed income exposure in the U.S. and internationally. According to FactSet, Bloomberg and BlackRock, iShares has the most fixed income ETFs and has received double the net flows into its fixed income offerings versus other ETF providers in 2010. iShares fixed income ETFs have brought in $14 billion this year, as of November 30th, and currently have a total of $93 billion under management.
"iShares has long been the fixed income ETF leader, and we have continued to see strong interest in our fixed income products this year, as investors look for protection from inflation and further diversification in their portfolios," said Matt Tucker, Head of Fixed Income Investment Strategy for iShares at BlackRock. "The new iShares Barclays 0-5 Year TIPS Bond Fund offers investors these same attributes along with a low sensitivity to interest rates. For example, a STIP investor would receive higher distributions if inflation increases over time, but would see less impact if interest rates rise than would an investor in a longer maturity TIPS fund."
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Source: BlackRock
Fee Rate Advisory #3 for Fiscal Year 2011
December 3, 2010--The President and Congress are expected to extend the continuing resolution funding the Securities and Exchange Commission through Dec. 18, 2010. During this period, fees paid under Section 6(b) of the Securities Act of 1933 and Sections 13(e), 14(g) and 31 of the Securities Exchange Act of 1934 will remain at their current rates.
As previously announced, 30 days after the date of enactment of the Commission’s regular fiscal year 2011 appropriation, the Section 31 fee rate applicable to securities transactions on the exchanges and in the over-the-counter markets will increase from their current rate of $16.90 per million dollars to a new rate of $19.20 per million dollars. The assessment on security futures transactions under Section 31(d) will remain unchanged at $0.0042 for each round turn transaction.
In addition, five days after the date of enactment of the Commission’s regular appropriation, the Section 6(b) fee rate applicable to the registration of securities, the Section 13(e) fee rate applicable to the repurchase of securities, and the Section 14(g) fee rate applicable to proxy solicitations and statements in corporate control transactions will increase from their current rate of $71.30 per million dollars to a new rate of $116.10 per million dollars.
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Source: SEC.gov
Standard & Poor’s Announces Changes in the S&P/TSX Canadian Indices
December 3, 2010--Standard & Poor’s Canadian Index Operations announces the following index changes:
The shareholders of Andean Resources Limited (TSX:AND) have approved the Merger Implementation Agreement whereby the company will merge with Goldcorp Inc. (TSX:G).
Assuming receipt of Australian court approval, expected on December 8, 2010, Andean Resources will be removed from the S&P/TSX Global Gold and Global Mining Indices. The relative weight of Goldcorp will increase in the S&P/TSX Composite and Capped Composite, the S&P/TSX Equity and Capped Equity, the S&P/TSX 60, 60 Capped and Equity 60, the S&P/TSX Global Gold and Global Mining the S&P/TSX Capped Materials and the S&P/TSX MegaCap indices. There will be no change to Goldcorp in the S&P/TSX 60 Equal Weight or the S&P/TSX 60 130/30 indices. These changes will all be effective after the close of trading on Thursday, December 9, 2010.
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
