Americas ETP News Older Than 1 year-If your looking for specific news, using the search function will narrow down the results
Vanguard Files Final Prospectus to Broaden Low Cost ETF Line-Up
October 17, 2012--Vanguard Investments Canada Inc. announced today that a final prospectus for five new Canadian-domiciled exchange-traded funds (Vanguard ETFs) has been receipted by the securities regulatory authorities.
Vanguard expects to list the new ETFs on Toronto Stock Exchange (TSX) subject to meeting all regulatory and TSX requirements.
Invesco Study: ETF Usage Increasing Among RIAs
Risk Management Remains Top of Mind as Advisers Pursue Strategic Mix of Products
October 17, 2012--Registered Investment Advisers (RIAs) expect to see increased usage of Exchange-Traded Funds (ETFs) in client portfolios, while aversion to risk remains high, according to results of an Invesco market research study released today.
RIAs surveyed believe ETFs will make up 24 percent of portfolio allocations over the next 12 months and 33 percent over the next three years, representing a 10 percent increase over results reported in Invesco's survey of RIAs in 2011.
Knight CEO: Company forming risk committee
Knight's loss from Aug. 1 trading error came in at $461.1 million
Knight forms new risk committee at board level
Business momentum returning despite difficult climate, CEO says
(Updates with comments from Knight CEO.)
October 17, 2012--Knight Capital Group has formed a new risk committee of directors as the electronic trading firm continues to rebuild following a catastrophic trading error in August, Knight's top executive said Wednesday.
Technology staff at Knight continue to analyze the Aug. 1 trading mishap, which drove a $461.1 million loss for Knight and forced the Jersey City, N.J., firm to seek rescue funding from a group of customers and rivals.
Van Eck files with the SEC
October 17, 2012--Van Eck has filed a post-effective amendment, registration statement with the SEC for the Non-Agency RMBS ETF.
view filing
ETF Spotlight: New Dividend ETFs Being Created, Just Not Equally
October 17, 2012--At the beginning of the year we reviewed an article from Dow Jones' MarketWatch titled, "10 money-making investment ideas for 2012," which shared a sentiment popular among nearly every strategist on Wall Street at the time-"
Stick with dividend-paying growth stocks". Their premise, similar to many, and plausible to even more, was that "U.S. corporate balance sheets — the fundamentals — are in excellent shape overall. Still, in a slow-growth climate the advantage goes to the best of the best. These companies tend to be in areas that are less economically sensitive. Typically they’re large-caps, with a 'wide moat' of business, strong cash flow and a history of using capital for productive purposes including acquisitions, share buybacks and consistently higher dividends." Dividend stocks were about the safest and easiest recommendation an advisor could make to clients early in 2012 as firms generally supported the concept and investors were at least more receptive to this segment of the market after seeing the S&P 500 Index [SPX] finish 2011 with 0% returns.
CFTC Issues Final Rule Amending Existing Commission Regulations To Incorporate Swaps
October 16, 2012--The Commodity Futures Trading Commission (CFTC) today approved a final rule that amends certain current regulations in order to implement aspects of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).
The Dodd-Frank Act amended the Commodity Exchange Act in numerous ways to give the Commission the authority to regulate swaps. Today’s final rule amends certain existing Commission regulations to integrate them with the statutory and regulatory framework established under the Dodd-Frank Act. The Commission voted 5 to 0 via seriatim to approve the final rule, which will become effective 60 days after publication in the Federal Register.
Specifically, the CFTC has amended certain definitions and recordkeeping regulations so that they apply to both futures and swaps. As an example, futures commission merchants and introducing brokers will now be required to follow recordkeeping rules for swap transactions that are equivalent to those rules they presently follow for futures transactions.
view the Final Rule-Adaptation of Regulations to Incorporate Swaps
S&P Dow Jones Indices Announces Changes To The S&P/TSX Canadian Indices
A Deletion From The S&P/TSX Venture Composite Index
October 16, 2012--S&P Canadian Index Services will make the following changes in the S&P/TSX Canadian Indices:
The TSX Venture Exchange has announced that, after the close of trading on Tuesday, October 16, 2012, Fortress Minerals Corp. (TSXVN:FST) will transfer to NEX to trade under the new ticker symbol FST.H.
At the same time the company will be removed from the S&P/TSX Venture Composite Index.
Treasury International Capital Data for August
October 16, 2012--The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for August 2012. The next release, which will report on data for September 2012, is scheduled for November 16, 2012.
The sum total in August of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a monthly net TIC inflow of $91.4 billion. Of this, net foreign private inflows were $50.0 billion, and net foreign official inflows were $41.4 billion.
Foreign residents increased their holdings of long-term U.S. securities in August – net purchases were $78.5 billion. Net purchases by private foreign investors were $48.6 billion, and net purchases by foreign official institutions were $29.9 billion.
At the same time, U.S. residents decreased their holdings of long-term foreign securities, with net sales of $11.5 billion.
Renaissance Capital files with the SEC
October 16, 2012--Renaissance Capital has filed an amended and restated application for exemptive relief with the SEC.
view filing
One-year-old ETF beats hedge funds, stock market in first year
October 16, 2012--A one-year-old actively managed exchange-traded stock fund has beaten a number of market benchmarks in its first year, including most hedge funds, the ETF sponsor AdvisorShares said on Tuesday.
Through September 30, the TrimTabs Float Shrink ETF gained 35.14 percent since it launched on October 4 last year, beating the benchmark Russell 3000 Index, which rose 32.85 percent over the same period, as well as the S&P 500 index.
EGShares Announces Launch of Emerging Markets Core ETF (Ticker: EMCR) to Provide a More Diversified Emerging Market Core Holding
EMCR tracks the S&P Emerging Markets Core Index, which provides greater country and industry diversification than conventional EM benchmark indices
October 16, 2012--Emerging Global Advisors today announced the launch of the EGShares Emerging Markets
Core ETF (Ticker: EMCR), an exchange-traded fund (ETF) that aims to provide a diversified core approach for investors seeking broad exposure to emerging market (EM) equities.
The EGShares Emerging Markets Core ETF is the only ETF that tracks the S&P Emerging Markets Core Index, an index designed as an investment index rather than a benchmark. The S&P Emerging Markets Core Index has less industry and mature economy concentration than conventional benchmarks such as the MSCI Emerging Markets Index and the
FTSE Emerging Index.
The initial concept for the S&P Emerging Markets Core Index was conceived by Emerging Global Advisors. The Index, designed, calculated, published and maintained by S&P Dow Jones Indices, seeks to avoid the industry and mature economy concentrations of conventional benchmarks which result from their market-cap weighting approach, in addition to their inclusion of developed economy constituents. It seeks to reduce concentration in legacy frontier market industries, broaden country diversification and tap into available liquidity to gain exposure to potentially emerging industries. The rules-based Index focuses on industry groups as index building blocks, contains no developed economy constituents and adopts an equal weighting modified by a country-capping approach.
Northern Trust launches money fund-like ETF
October 16, 2012--Northern Trust's FlexShares exchange traded fund family has entered the hotly contested field of money fund substitute ETFs.
Its new Ready Access Variable Income ETF, or RAVI, invests actively in a global portfolio of shorter-term holdings including investment-grade bonds, debt securities and other debt issued by governments, corporations and banks.
UBS Announces Consent Solicitation Regarding Exchange Traded Note Linked to the UBS Bloomberg Constant Maturity Commodity Index Total Return Due 2038: UCI
October 16, 2012--UBS AG announced today that it has launched a consent solicitation (the "Consent Solicitation") for its Exchange Traded Access Securities (ETRACS) linked to the UBS Bloomberg Constant Maturity Commodity Index Total Return due 2038, CUSIP No. 902641778 (the "Securities").
The Securities trade on the NYSE Arca under the ticker symbol “UCI”.
Subject to the terms and conditions set forth in the Consent Solicitation Statement dated October 16, 2012 (the “Statement”) and the accompanying Letter of Transmittal (the “Letter of Transmittal”), UBS AG (“UBS”) is soliciting consents (“Consents”) to the proposed amendment (the “Proposed Amendment”) of the Indenture from each person in whose name Securities were registered at 5:00 p.m., New York City time, on October 15, 2012 (the “Record Date”), or their duly designated proxies, including persons who held Securities through The Depository Trust Company as of the Record Date (“DTC Participants” and, together with registered holders as of the Record Date, the “Holders”).
SEI Extends ETF Relationship With Global X Funds
Oct. 16, 2012 – SEI (NASDAQ:SEIC) today announced it has extended its multi-year relationship with Global X Funds to continue to provide a fully integrated, turnkey solution to support the firm's exchange traded fund (ETF) family.
The extension of the relationship is a testament to SEI’s ability to support Global X’s continued success.
Global X has continued to grow and diversify its product line. After a successful launch of emerging market ETFs, Global X now manages 35 ETFs, having branched out further to include commodity producers as well as dividend-producing funds. For each of the Global X ETFs, SEI provides a complete outsourcing solution including fund administration, accounting, investor servicing, distribution and authorized participant (AP) processing in a scalable straight-through electronic processing environment.
Deutsche Bank-Synthetic Equity & Index Strategy-North America-Weekly ETF Market Review -ETP assets shy away from the $1.3 trillion mark on market pullback
October 16, 2012--Net Cash Flows Review
Equity markets suffered a pullback during last week. The US (S&P 500) fell by 2.21%. While, outside the US, the MSCI EAFE (in USD) and the MSCI EM (USD) dropped by 2.07% and 1.2%, respectively.
Moving on to other asset classes, the 10Y US Treasury Yield dropped by 6bps last week; while the DB Liquid Commodity Index was up by 0.05%. The Agriculture sector (DB Diversified Agriculture Index), Gold and Silver prices retreated by 0.7% , 1.47% and 2.92%, respectively, meanwhile WTI Crude Oil rose 2.2%. Last but not least, Volatility (VIX) rose by 12.63% during the same period.
The total US ETP flows from all products registered $3.38bn of outflows during last week vs $4.35bn of inflows the previous week, setting the YTD weekly flows average at +$3.2bn (+$131.7bn YTD in total cash flows).
Equity, Fixed Income, and Commodity ETPs experienced flows of -$4.64bn, +$0.96bn, +$0.38bn last week vs.+$2.27bn, +$1.07bn, +$1.14bn in the previous week, respectively.
Within Equity ETPs, Dividend products had the most inflows (+$0.3bn); while Large Cap products had the largest outflows of $5.1bn. Within Fixed Income ETPs, Corporate products had the largest inflows (+$0.4bn); while Sovereign products experienced the only outflows (-$0.1bn). Within Commodity ETPs, Precious Metals products experienced inflows of $0.3bn, while the other sectors experienced less relevant flows.
Top 3 ETPs & ETNs by inflows: GLD (+$0.4bn), XLE (+$0.3bn), IYR (+$0.3bn)
Top 3 ETPs & ETNs by outflows: SPY (-$2.8bn), QQQ (-$1.0bn), OEF (-$0.7bn)
New Launch Calendar: short term liquidity and quantitative strategies
There was 1 new ETF and 1 new ETN listed on the NYSE Arca during the previous week. The new active fixed-income ETF aims to help cash investors reach higher returns and maintain liquidity without excessive volatility, while the new Equity ETN offers exposure to a quantitative strategy that targets undervalued sectors with relative strong price movement.
Turnover Review: Floor activity decreased by 11%
Total weekly turnover decreased by 10.8% to $234bn vs. $262bn from the previous week. Last week's turnover level was 38% below last year's weekly average. Equity, Fixed Income and Commodity ETPs turnover decreased by $19.4bn (-8.6%), $4.8bn (-24.7%) and $3.6bn (-23.1%), respectively.
Assets under Management (AUM) Review:
ETP assets dropped by 1.7%
After almost reaching the $1.3 trillion mark last week, ETP assets dropped by 1.7% (-$21.9bn) in line with the markets. As of last Friday, US ETPs have accumulated an asset growth of 22.1% YTD. Assets for equity, fixed income and commodity ETPs moved -$22.3bn, +$1.4bn, -$0.9bn during last week, respectively.
