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Russell files with the SEC
November 15, 2010--Russell has filed a third amended and restated application for exemptive relief with the SEC.
view filing
Source: SEC.gov
SEC Publishes Agenda and Announces Speakers for Small Business Forum
November 12, 2010--The Securities and Exchange Commission today published the agenda and announced the speakers scheduled to appear at its November 18 forum on small business capital formation.
The SEC forum will begin at 9 a.m., ET, at the Commission's Washington, D.C., headquarters. It will include remarks by SEC Chairman Mary L. Schapiro and SEC Commissioner Troy A. Paredes. The agenda includes a panel on selected provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act relating to securities regulation and small business. The agenda also includes presentations by private organizations concerned with small business capital formation. The afternoon agenda consists of breakout groups to develop recommendations to facilitate small business capital formation.
Pre-registered members of the public may attend the forum without charge. Online registration is available at the SEC small business forum Web page. The forum also will be webcast live at www.sec.gov.
Source: SEC.gov
An Important Message about ETFs from the CEO of EGShares
November 12, 2010--There has been a lot of media attention recently about the stability and safety of ETFs. Two reports in particular claim that the underlying structure and the ability to short an ETF can somehow introduce additional, meaningful risks to existing shareholders who hold long positions. These claims are flawed, poorly researched and provide inaccurate and misleading conclusions.
The authors of the two most often quoted studies have a direct personal and financial interest in discrediting the ETF industry.
The conflict of interest in the report from the Kauffman Foundation is simple to understand. Thomas McDowell, Chairman of the Kauffman Foundation, is the CEO of DST Systems, Inc. which provides technology to support the old mutual fund business model and high frequency traders—both direct competitors to ETFs. Harold Bradley, the author of the report, spent 19 years at American Century, a Kansas City-based mutual fund company.
http://www.zerohedge.com/article/conflict-interest-behind-kauffman-etf-report
The conflict of interest in the report from Bogan Associates is also very transparent. Tom and Andrew Bogan run a sell-side research firm in Boston. Tom has worked for Putnam and Lord Abbett. Active managers rely on bottom-up sell side research, so it’s in their self interest to discredit the ETF industry.
http://boganassociates.com/vision.html
We encourage all investors to thoroughly research any investment product or platform before making an investment decision and always consider the source of any published materials. We believe the following clip from Morningstar’s Scott Burns provides a clear and balanced explanation of these reports.
http://www.morningstar.com/cover/videocenter.aspx?id=359416
Source: Emerging Global Advisors, LLC
Global X files with the SEC
November 12, 2010--Global X has filed a post effective amendment, registration statement with the SEC for
Global X FTSE Andean 30 ETF
Global X FTSE ASEAN 40 ETF
Global X S&P/TSX Venture ETF
Global X Next 11 ETF
view filing
Source: SEC.gov
iShares files with the SEC
November 12, 2010--iShares has filed a third amendedand restated application for exemptive relief with the SEC.
view filing
Source: SEC.gov
Rafferty Asset Management to Close the Direxion Daily 2-Year Treasury ETFs
Closing Reflects Insufficient Trading Demand for Short-Term Treasury Fund Products
November 12, 2010--The Board of Trustees of the Direxion Shares ETF Trust, based upon the recommendation of Rafferty Asset Management, LLC, the Trust's adviser, has determined to close the Direxion Daily 2-Year Treasury Bull 3X Shares (TWOL) and the Direxion Daily 2-Year Treasury Bear 3X Shares (TWOZ).
Due to the Funds' low level of assets, Rafferty determined that the Funds could not continue operations in an economically efficient manner. As such, the Board concluded that it would be in the best interests of each Fund and its shareholders to liquidate and terminate the Funds. The shares of the Funds will cease trading on the NYSE Arca, Inc. and close to new investors as of the close of regular trading on Nov. 30, 2010. Customary brokerage charges may apply to any transactions prior to that time.
"Direxion is focused on only offering solutions that provide exposure to tradable sectors and markets," said Dan O'Neill, President and CIO. "We believe in delivering products that directly meet the demands of sophisticated investors who seek to capitalize on changing market conditions. While interest in 2-Year Treasuries has fallen, investors are displaying ongoing interest in our longer-term Treasury 3x ETFs for transparent and magnified exposure to the Treasury markets."
Between the close of trading on Nov. 30, 2010 and Dec. 7, 2010, the Funds will be in the process of liquidating their portfolio assets. Shares of the Funds will not trade on the NYSE Arca, Inc. during this time. Following the close of trading on Nov. 30, 2010 through Dec. 7, 2010, shareholders only may be able to sell their shares to certain broker-dealers and there is no assurance that there will be a market for the Funds during this time period. In addition, the planned liquidation of the Funds will result in the Funds not tracking their underlying indexes and their cash holdings increasing, which may not be consistent with the Funds' investment objectives and strategies.
Shareholders retaining Fund shares on Dec. 7, 2010 will have their Fund shares redeemed automatically at that time and will receive cash in an amount equal to the net asset value of their shares as of 4:00 p.m. Eastern Time on Dec. 7, 2010. Payments to shareholders will include accrued capital gains and dividends, if any. The net asset value as calculated will reflect the costs of closing the applicable Fund.
Source: Direxion
CFTC to Hold Open Meeting on Fifth Series of Proposed Rules under the Dodd-Frank Act
November 12, 2010-- The Commodity Futures Trading Commission (CFTC) will hold a public meeting on Friday, November 19, 2010, at 9:30 a.m. to consider the issuance of proposed rulemakings under the Dodd-Frank Wall Street Reform and Consumer Protection Act on the following topics:
Swap data repositories;
Real-time public reporting of swap transaction data;
Protection of collateral of counterparties to uncleared swaps, and treatment of securities in a portfolio margining account in a commodity broker bankruptcy; and
Data recordkeeping.
In addition to these proposed rulemakings, the Commission will consider the issuance of an Advance Notice of Proposed Rulemaking involving Protection of Cleared Swaps Customers Before and After Commodity Broker Bankruptcies.
read more
Source: CFTC.gov
IndexIQ's IQ Real Return ETF Marks One-Year Anniversary
First U.S.-listed real return ETF designed to provide a hedge against inflation; Invests in diverse asset classes including equities, currencies, commodities, fixed income & real estate
November 11, 2010--The IQ Real Return ETF (nyse arca:CPI), the first U.S.-listed real return Exchange-Traded Fund (ETF), marked its one-year anniversary on October 27, 2010, it was announced today by the fund's sponsor, IndexIQ.
The IQ Real Return ETF (CPI) seeks investment results that correspond, before fees and expenses, to the price and yield performance of the IQ Real Return Index. The Index seeks to provide a hedge against the U.S. inflation rate by providing a "real return" or a return above the rate of inflation, as represented by the Consumer Price Index, which is published by the Bureau of Labor Statistics and is a measure of the average change in prices over time of goods and services purchased by households.
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Source: IndexIQ
WisdomTree Responds to Kauffman Foundation's Criticism of ETFs
Open Letter Refutes Inaccurate Claims and Misconceptions
Encourages Fact-based Analysis of Wide-ranging Generalizations
November 11, 2010--WisdomTree , an exchange-traded fund ("ETF") sponsor and asset manager, announced today an open letter responding to a critical ETF industry analysis from the Kauffman Foundation.
The open letter from ETF industry pioneer and WisdomTree President Bruce Lavine is available here or at www.wisdomtree.com.
"We believe the Kauffman Foundation's report reflects a serious misunderstanding of the structure and operation of ETFs and is perpetuating a series of misconceptions in the mainstream media," said Bruce Lavine, WisdomTree President & COO. "We found the primary conclusion of the report, namely that ETFs might collapse because of the ability to short them, to be completely groundless."
Mr. Lavine continued, "We believe it is important for investors to understand the ETF structure so that their options are not limited to structures with higher fees, less liquidity, less tax efficiency, less transparency and less overall flexibility. To that end, we encourage industry participants to view our letter and contact WisdomTree for more information."
Source: WisdomTree
Fund.com Subsidiary AdvisorShares Raises Over $100 Million in Assets Under Management
November 11, 2010--Fund.com, Inc., announced today that its majority-owned subsidiary, AdvisorShares Investments, LLC, an innovator of actively managed Exchange Traded Funds (ETFs), has passed $100 million in assets under management.
The largest ETF in the AdvisorShares family is the AdvisorShares Mars Hill Global Relative Value ETF, the industry's first long/short ETF, which in four months has grown to over $42 million in assets. The AdvisorShares line-up consists of a few other firsts: The AdvisorShares Dent Tactical ETF was the first actively managed ETF of ETFs, and the AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF was the first international actively managed ETF.
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Source: Fund.com
