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iShares files with the SEC-iShares 2020 Investment Grade Corporate Bond ETF
November 13, 2012--iShares has filed a post-effective amendment, registration statement with the SEC for the iShares 2020 Investment Grade Corporate Bond ETF.
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iShares files with the SEC-iShares 2016 Investment Grade Corporate Bond ETF
November 13, 2012--iShares has filed a post-effective amendment, registration statement with the SEC for the iShares 2016 Investment Grade Corporate Bond ETF.
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First Trust files with the SEC
November 13, 2012--First Trust has filed a registration statemeFirst Trust Global Tactical Commodity Strategy Fund.
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ETF Fervor Shifts to Loans as Bonds Lose Luster: Credit Markets
November 13, 2012--Exchange-traded funds that amassed junk bonds at a record pace in the first half of 2012 are now attracting unprecedented cash to buy speculative-grade loans as investors wager that a four-year rally in the notes is ending.
Blackstone Group LP (BX), the world’s largest private-equity firm, is planning its first ETF that will mostly buy loans, and Pyxis Capital LP, spun off from Highland Capital Management LP, announced its first such fund last week. Invesco Ltd.’s PowerShares Senior Loan (BKLN) fund, started two years ago as the first ETF solely dedicated to loans, has grown to become the third- biggest speculative-grade debt ETF with $1.2 billion of assets.
DB-Synthetic Equity & Index Strategy-North America-Weekly ETF Market Review- ETP assets retreat from the $1.3 trillion mark on market pullback
November 13, 2012--Market and Net Cash Flows Review as of Friday, Nov 9th, 2012
US Equity markets plunged across the board last week. The S&P 500 lost 2.43%, with all 10 sectors going into red numbers during the period.
Utilities and Financials suffered the most, dropping 4.62% and 3.10%, respectively.
Markets outside the US were down in a similar way. The flight to safety triggered by the sell-off following President Obama’s reelection prompted a rally within rates, with the 10Y US Treasury Yield dropping by 14 bps and some products tracking 20Y+ treasuries gaining more than 3% during the week. Commodities were mostly positive, driven mainly by the Precious Metals and Energy space, where Gold, Silver, and WTI Crude Oil recorded gains of 3.16%, 5.46%, and 1.43%, respectively. At the same time, the USD strengthened against most of the majors and Volatility rose by 5.8%.
The total US ETP flows from all products registered $2.42bn (+0.2% of AUM) of inflows during last week vs $5.15bn (+0.4%) of inflows the previous week, setting the YTD weekly flows average at +$3.1bn (+$138.35bn, +13.2% YTD in total cash flows).
Equity, Fixed Income, and Commodity ETPs experienced flows of +$0.96bn (+0.1%), +$1.07bn (+0.4%), +$0.37bn (+0.3%) last week vs. +$2.78bn (+0.3%), +$2.33bn (+0.9%), +$0.01bn (+0.0%) in the previous week, respectively.
Among US sectors, Industrials (+$0.22bn, +3.9%) and Materials (+$0.14bn, +2.0%) received the most significant flows.
In the equity space, Large Cap ETFs experienced $1.9bn (-0.9%) in outflows; while Emerging Markets (+$0.7bn, +0.7%) and Value (+$0.4bn, +0.9%) ETFs saw the largest inflows. In the debt space, Sovereign products gathered most of the inflows (+$0.8bn, +1.3%). Within Commodity products, flows were driven by Precious metals with +$0.3bn (+0.3%).
Top 3 ETPs & ETNs by inflows:
EEM (+$0.9bn), TLT (+$0.3bn), GDX (+$0.3bn)
Top 3 ETPs & ETNs by outflows:
SPY (-$2.1bn), VWO (-$0.3bn), AGG (-$0.2bn)
New Launch Calendar: income generation with senior loans
Last week Pyxis Funds launched their first ETF (SNLN), the new fund was listed on the NYSE Arca and offers exposure to a portfolio of senior loans.
Turnover Review: Floor activity gets back to pre-hurricane levels
Total weekly turnover increased by 95.5% to $313bn vs. $160bn from the previous week. However, last week's turnover level was still 17% below last year's weekly average. Equity, Fixed Income and Commodity ETPs turnover increased by $137bn (+98%), $7.1bn (+64%) and $7.4bn (+93%), respectively.
Assets under Management (AUM) Review:
ETP assets shy away from peak
Markets weighed on ETF assets, pushing them down by 0.9% (-$11.9bn) to $1.26 trillion. As of last Friday, US ETPs have accumulated an asset growth of 20.5% YTD. Assets for equity, fixed income and commodity ETPs moved -$16.6bn, +$1.4bn, +$3.3bn during last week, respectively.
FINRA Increases Transparency in the TBA Market for Agency Pass-Through Mortgage-Backed Securities
October 13, 2012--The Financial Industry Regulatory Authority (FINRA), on Monday November 12, significantly increased transparency in the so-called "To-Be-Announced" (TBA) market for agency pass-through mortgage-backed securities.
This market represents more than $270 billion traded on an average daily basis in 8,400 trades. Through the Trade Reporting and Compliance Engine (TRACE), FINRA has begun disseminating TBA transaction information, including the CUSIP, time of transaction, price, size and other related information.
In addition to the TBA market, the SEC has approved a FINRA proposal to publicly disseminate transaction information in agency pass-through mortgage-backed securities traded "specified." This market represents approximately $19 billion traded on an average daily basis in 3,000 trades.
Interactive Data Introduces New Suite of ETF Web Tools
ETF Tools Provide Extraordinary ETF Analysis and Publishing Capabilities to Advisory, Brokerage, ETF Issuer and Media Firms
November 13, 2012--Interactive Data Corporation, a leading provider of ETF valuations and hosted web services, today announced the launch of its new white label suite of ETF web tools.
The new tools help advisors and investors analyze, build and promote investment strategies using ETFs.
Cambria files with the SEC
November 13, 2012--Cambria has filed an amendment no.3 to a amended application for exemptive relief with the SEC.
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New ETF starts trading on BM&FBOVESPA
November 12, 2012--A new exchange-traded fund (ETF) is available for trading on BM&FBOVESPA. XBOV11 is indexed to the Bovespa Index-Ibovespa, which tracks the performance of the shares issued by leading electric, water and sewage, and gas utilities.
The ticker symbol of the new ETF called CAIXA ETF Ibovespa Index Fund (XBOV) is: XBOV11.
The XBOV11 brings the number of ETFs traded on BM&FBOVESPA to 15. Seven of these are broad indices (of which two for the Ibovespa, one the IBrX-100, one the IBrX-50, one Mid-Large Cap, one Small Cap and one the Dividends Index); five are sectorial indices (Consumption, Real Estate, Financial, Basic Materials and Public Utility);
view the BM&FBOVESPA October 2012 ETF report
DB-Synthetic Equity & Index Strategy-North America-Monthly ETF Market Review-Rotation among risky assets, but no flight to safety
November 12, 2012--US ETP assets fell by 1.0% in October
ETP assets in the US dropped by $12.2bn to $1.27 trillion (YTD + 21.6%) last month.
Global ETP industry assets pulled back to $1.74 trillion, or 21.5% up YTD.
Investor flows suggest slight de-risking during October
US ETP flows experienced inflows of $2.8bn during October (+$133.6bn YTD, 12.8% of last year’s AUM).
Within long-only ETPs, total flows were +$2.8bn in October vs. +$35.4bn in September.
Equity, Fixed Income, and Commodity long-only ETPs experienced cash flows of -$4.7bn, +$5.9bn, and +$1.9bn, respectively.
After a couple of months of strong risk-on momentum, investors booked profits during October by pulling out from US-focused Equity products (-$11.8bn). In addition, flows suggest that the appetite for risky assets also decreased within the Credit space with HY ETF flows ending about flat and IG fund flows attracting most of the new assets (+$4.0bn). However the flow figures don’t suggest a straight flight to safety, but rather a rotation within risky assets coupled with a search for downside protection. For example, Corporate debt products (+$3.3bn) were preferred over Sovereign (-$0.6bn); and within equity, international exposure ETFs still received strong inflows such as the $1.3bn received by China-focused products.
New Launch Calendar: Core equity allocations and quant strategies
There were eleven new ETFs and two new ETNs listed during the previous month. Twelve of them were listed in the NYSE Arca, with the remaining one in the NASDAQ. The new products were mostly focus on core equity exposure across regions and quantitative strategies.
Turnover Review: Floor activity increased by 6%
ETP turnover totaled $1.08 trillion last month, up by 5.8% (+$59.4bn) from the previous month figure of $1.02 trillion, but still 34% below last year’s monthly average of $1.65 trillion.
ETP trading made up 25.4% of all US cash equity trading in October, down from last year’s peak of 37.5% in August, and still below its 3-year monthly average of 29.0%.
Equity and Fixed Income ETPs turnover rose by $73.2bn or 8.4% and $4.0bn (6.0%), respectively; meanwhile Commodity ETPs turnover fell 20.9% (-$15.3bn) during last month.
Morgan Stanley-ETF Weekly Update
November 12, 2012--Weekly Flows: $2.4 Billion Net Inflows
ETF Assets Stand at $1.3 Trillion, up 20% YTD
One ETF Launch Last Week
No News Items Last Week
US-Listed ETFs: Estimated Flows by Market Segment
ETFs generated net inflows for the second consecutive week ($2.4 bln last week)
Emerging Market Equity ETFs led the way last week, exhibiting net inflows of $1.1 bln
ETF assets stand at $1.3 tln (up 20% YTD) and have posted net inflows 35 out of 45 weeks in 2012 ($137.0 bln YTD)
13-week flows were mostly positive among asset classes; combined $50.0 bln net inflows
Fixed Income ETFs have posted net inflows 63 out of the past 65 weeks; including $11.7 bln over the past 13 weeks
The Currency category was the lone area that we measured to exhibit net outflows over the last 13 weeks; specifically, the PowerShares DB US Dollar Index Bullish Fund (UUP) posted net outflows of $299 mln over that time period
US-Listed ETFs: Estimated Largest Flows by Individual ETF
iShares MSCI Emerging Markets Index Fund (EEM) generated net inflows of $917 mln, the most of any ETF
EEM has posted net inflows of $2.2 bln over the last 4 weeks, also the most of any ETF; positive flows coincide with Vanguard transitioning its emerging markets ETF, Vanguard MSCI Emerging Markets ETF (VWO), to FTSE from MSCI
Over the past 13 weeks, the SPDR Gold Trust (GLD) has posted net inflows of $4.5 bln, the most of any ETF, as investors have flocked to the precious metal amid global monetary easing
US-Listed ETFs: Short Interest
Data Updated:
Based on data as of 10/31/12
SPDR S&P 500 ETF (SPY) had the largest increase in USD short interest at $1.9 bln
Despite an increase in short interest last period, SPY’s shares short remained 26% below their average level over the past year
Aggregate ETF USD short interest increased by $3.9 bln over the past two weeks ended 10/31/12
The average shares short/shares outstanding for ETFs is currently 4.4%
Smaller ETFs by market cap may skew the results (3 of the top 10 with the highest % of shares short have market caps <$25 mln)
Notably, the iShares Barclays 20+ Year Treasury Bond Fund (TLT) cracked the top ten most heavily shorted ETFs
Based on multiple borrowings and the ability to continuously create new shares, shares short as a % of shares outstanding can exceed 100% (only seven 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 11/9/12 based on daily change in share counts and daily NAVs.
$7.5 billion in total market cap of ETFs less than 1-year old
Newly launched Active ETFs account for 52% of the market cap of ETFs launched over the past year
142 new ETF listings and 76 closures YTD (additional 3 liquidations have been announced)
The top 10 most successful launches make up 72% of the market cap of ETFs launched over the past year
Five different ETF sponsors and two asset classes represented in top 10 most successful launches
Seven out of the 10 most successful launches over the past year have a fixed income orientation and include both actively and passively managed ETFs
BlackRock accounted for 31% of new launches over the past year, but only 25% of market cap; PIMCO Total Return ETF (BOND), with a market cap of $3.5 bln, dominates the market cap of newly launched ETFs (47% of total market cap)
For Passive Investors, Rolling Commodities Gather a Loss
November 11, 2012--Even when commodities win, investors can still lose.
Despite fundamental market pressures and a volatile year, prices for front-month natural gas futures have gained a healthy 24% so far in 2012.
But if you bought units in the United States Natural Gas Fund at the start of the year, you would instead have lost one-fifth of your investment.
The disconnect gets worse the further back you look. On a five-year view, gas futures are down by just over half, but the fund's units have lost almost 94% of their value.
BNY Mellon DR Indices Monthly Performance-October 2012
November 10, 2012--The BNY Mellon DR Index Monthly Performance Review October 2012 is now available.
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Watch the costs at fund of funds
November 10, 2012--Is your financial adviser recommending that you invest in a fund of other funds? If so, think twice and ask why, as many experts think the extra costs entailed in funds of funds are not justified by their performance.
A fund of funds is a unit trust run by an asset manager who invests not in shares or bonds, but in other funds. There are two types: fettered, where the fund invests in funds managed by its own company, and unfettered, which gives the manager freedom to invest in funds run by other managers. These products typically offer investors exposure to a variety of asset classes, such as bonds, equities and property, and a range of investment styles.
CME Group Sues Regulator Over Swap-Reporting Rules .
November 9, 2012--CME Group Inc.(CME) filed a lawsuit to block new federal requirements around the reporting of swap transactions, one component of the wide-ranging Dodd-Frank financial law.
Such rules, which would hit CME as the operator of a clearinghouse for derivatives trades, "would impose costly, cumbersome and duplicative requirements" on clearinghouses, CME charged in the lawsuit filed Thursday.
