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Now Available: PowerShares S&P SmallCap Sector Portfolios
April 23, 2010--The PowerShares S&P SmallCap Sector Portfolios are the first suite of exchange-traded funds (ETFs) offering sector-specific beta exposure within the small-cap space.
Ticker:XLYS-
PowerShares S&P SmallCap Consumer Discretionary Portfolio
Ticker:XLPS-PowerShares S&P SmallCap Consumer Staples Portfolio
Ticker:XLES-PowerShares S&P SmallCap Energy Portfolio
Ticker:XLFS-PowerShares S&P SmallCap Financials Portfolio
Ticker: XLVS-PowerShares S&P SmallCap Health Care Portfolio
Ticker:XLIS-PowerShares S&P SmallCap Industrials Portfolio
Ticker:XLKS-PowerShares S&P SmallCap Information Technology Portfolio
Ticker:XLBS-PowerShares S&P SmallCap Materials Portfolio
Ticker: XLUS-PowerShares S&P SmallCap Utilities Portfolio
Source: Invesco PowerShares
Russell hires director for ETF licensing business
Ken O'Keeffe joins Russell Indexes to increase service to ETF providers
April 22, 2010-- Russell Investments has hired Ken O'Keeffe as an additional dedicated resource to support the firm's growing index-licensing business for exchange traded funds (ETFs). O'Keeffe formerly worked for MSCI Barra, where he most recently served as global head of client service. He is based in Russell's office in New York City.
In addition, Jamie Forbes has been promoted to serve as regional director for ETFs for the Europe, Middle East and Africa region. Based in London, she oversees a dedicated program focused especially on European markets, where Russell's ETF licensing business already features five listed products.
In his role as regional director for exchange traded funds based on Russell Indexes, O'Keeffe oversees licensing and future development of new and additional products for ETF providers in the Americas who aim to leverage Russell's objective methodology and comprehensive index design.
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Source: Russell
Kanjorski Bill Preserving Affordable Mortgages In America's Heartland Passes In Committee
April 22, 2010-- Today, the House Financial Services Committee unanimously passed H.R. 5017, the Rural Housing Preservation and Stabilization Act of 2010, introduced by Congressman Paul E. Kanjorski (D-PA), Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises. This action clears the bill for consideration by the U.S. House of Representatives, which is expected to take up the bill as early as next week.
The bill ensures the continued access of rural homebuyers to affordable mortgages through the U.S. Department of Agriculture’s (USDA) loan guarantee program. The financial crisis has spiked consumer interest in the program, tripling the number of loans annually made since 2006. Because demand continues to grow, the program will exhaust its federal funding within days. H.R. 5017 would, at no cost to the taxpayers, solve this problem by making the program self funded, enabling families living in rural communities to continue to access these much needed loan guarantees.
“Since its creation in 1987, USDA’s affordable rural home loan guarantee program has helped hundreds of thousands of families to realize the American dream of homeownership, including many in Northeastern Pennsylvania,” said Chairman Kanjorski. “As a result of the unprecedented demand, the program is now unfortunately running out of money. At no cost to taxpayers, my bill will preserve the access of millions of families living in America’s heartland to needed USDA loan guarantees, so that they can continue to buy homes with affordable mortgages. Without action, too many families in rural America will have no options for getting home loans. We cannot allow that to happen.”.
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Source: House Financial Services Committee
Written Testimony of Dan M. Berkovitz, General Counsel U.S. Commodity Futures Trading Commission Hearing to Review Proposals to Establish Exchanges Trading "Movie Futures"
Before the Subcommittee on General Farm Commodities and Risk Management House Committee on Agriculture
April 22, 2010--Chairman Boswell, Ranking Member Moran, and members of the Subcommittee, thank you for inviting the Commodity Futures Trading Commission ("CFTC" or "Commission") to testify at this hearing to review proposals to establish exchanges trading "movie futures."
The Commission appreciates this opportunity to present to the Subcommittee information about the standards and procedures used by the Commission, pursuant to the Commodity Exchange Act ("CEA"), to review applications for new exchanges seeking to trade futures contracts.
This testimony will address the standards and procedures that approved exchanges-called "designated contract markets" ("DCMs") - must follow in order to trade new futures contracts. In addition, this testimony will describe the Commission's activities with respect to the two applications recently approved for DCMs that intend to trade futures contracts whose settlement prices are based on the level of box office receipts from movie theaters ("movie futures" or "box office receipt futures"), as well as the status of the Commission's reviews of those proposed contracts.
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Source: CFTC.gov
Toronto Stock Exchange Celebrates 20 Years Of Listing And Trading Exchange Traded Funds - TSX First In The World To List An ETF In 1990
April 22, 2010--2010 marks the 20th anniversary of the creation of the world’s first Exchange Traded Fund (ETF) on Toronto Stock Exchange. To celebrate this milestone, as well as the exponential growth and success of ETFs in the Canadian and global marketplace, TMX Group CEO Tom Kloet and representatives of Canada’s ETF providers will open trading on Toronto Stock Exchange today.
“We are very proud to have led the world in the creation of this revolutionary investment product,” said Thomas Kloet, CEO, TMX Group. “That first listing 20 years ago laid the foundation for the sector’s remarkable growth and innovation – growth and innovation that we plan to foster and support for many years to come.”
The first exchange traded product – the Toronto 35 Index Participation units (TIPs) – was listed on Toronto Stock Exchange in March 1990. This investment product allowed investors to participate in the performance of the TSE 35 Composite Index without having to buy shares in each constituent company. This product was followed by HIPs, which was a participation unit for the Toronto 100 Index. In 2000, these products merged into the iUnits S&P/TSE 60 Index Participation Fund; and in 2006, the fund name was changed to the iShares CDN S&P/TSX 60 Index Fund, the name it uses today.
ETFs are important investment tools for investors, providing flexible and cost-effective product options. Today Toronto Stock Exchange lists a diverse range of funds from a variety of industry sectors and asset classes, including equities, fixed income, commodities and currencies. In 2009, there were 38 new ETFs listings, and there have been 25 new ETFs listed so far this year. As of April 15, 2010, there were 147 ETFs listed on Toronto Stock Exchange with a total market capitalization of $36 billion. In 2009, 16.8 billion ETF shares were traded, representing 14 per cent of all trading on Toronto Stock Exchange. Options on 27 ETFs also trade on Montreal Exchange, which is a wholly-owned subsidiary of TMX Group.
20 years after the launch of TIPs on TSX, the international ETF sector has expanded dramatically as well. As of March 2010, there were 2,131 ETFs listed worldwide, totalling 4,133 listings from 123 providers on 42 exchanges, with a total market capitalization of almost U.S. $1.1 trillion.
For more information on exchange traded funds, visit TMX Group’s ETF investor information portal on www.TMXmoney.com, its financial information website. The portal provides in-depth information on ETFs, including basic education, trading strategies and resources for investors.
Source: TMX Group
Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Testimony Update
April 22, 2010--The Special Inspector General for the Troubled Asset Relief Program testified this morning before the House Committee on Appropriations Subcommittee on Financial Services and General Government.
His testimony can be found via our website at www.sigtarp.gov or via the following link: http://www.sigtarp.gov/reports/testimony/2010/Testimony%20Before%20the%20House%20Committee%20on%20Appropriations%20Subcommittee%20on%20Financial%20Services%20and%20General%20Government_4_22_2010.pdf
Source: Special Inspector General for the Troubled Asset Relief Program (SIGTARP)
Treasury Harnesses the Power of Wind
reasury Department Headquarters to be Powered Entirely by Wind Beginning July 31, 2010
April 22, 2010--To mark the 40th anniversary of Earth Day, the U.S. Department of the Treasury today announced that beginning July 31, 2010 the main Treasury building and the Treasury Department annex will use wind power to supply 100 percent of their energy demand. This comes on the heels of Treasury's announcement earlier this week of an initiative to make a dramatic shift from paper to electronic transactions, a move that is expected to save more than $400 million and 12 million pounds of paper in the first five years alone. Together these two new initiatives will greatly reduce Treasury's carbon footprint and overall environmental impact.
"The Treasury Department is committed to operating in a manner that is more sustainable and reduces our impact on the environment," said Assistant Secretary for Management and Chief Financial Officer Dan Tangherlini. "Switching the way we power our buildings is just one of the ways Treasury is meeting that commitment and working to lead the federal government in sustainable operations."
Electricity generation is the leading cause of industrial air pollution in the U.S., with the majority of U.S. electricity coming from non-renewable sources such as fossil fuel-based power plants. As of July 31, 2010, the Treasury Department will be purchasing enough Renewable Energy Certificates (RECs) for wind power to supply 100 percent of the energy demand for the main Treasury and Treasury annex buildings. RECs finance renewable power generation, which is then placed into the electrical grid and results in reducing the need for fossil fuel-based electrical generation. RECs allow buyers to ensure that a specified amount of renewable power was generated to meet their demand. The cost of purchasing RECs is more than offset by costs from other energy and water savings measures Treasury is undertaking.
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Source:U.S. Department of the Treasury
Wolin before the International Swaps and Derivatives Association 25th Annual Meeting
April 22, 2010--Thank you very much, Eraj, for that kind introduction. Good morning and thank you all for the opportunity to be here today.
Over a year ago, in the midst of the worst financial panic since the Great Depression, President Obama gathered with Congressional leaders of both parties to discuss the urgent need for financial reform.
He said at that meeting, "The choice we face is not between some oppressive government-run economy or a chaotic and unforgiving capitalism. Rather, strong financial markets require clear rules of the road, not to hinder financial institutions, but to protect consumers and investors, and ultimately to keep those financial institutions strong. Not to stifle, but to advance competition, growth and prosperity. And not just to manage crises, but to prevent crises from happening in the first place, by restoring accountability, transparency and trust in our financial markets."
A few months later, the Administration unveiled a sweeping set of reforms designed to do precisely what the President said: to lay the foundation for a safer, more stable financial system; one that fully protects the benefits of market-driven financial innovation while safeguarding against the dangers of instability and market-driven excess.
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Source: U.S. Department of the Treasury.
Rusal in Talks to Supply Aluminum to Banks for Funds
April 21, 2010-- United Co. Rusal, the world’s largest aluminum producer, said it’s in talks to supply metal to banks for possible exchange-traded funds that would be backed by the commodity.
“We’re interested in supporting new channels of demand for the metal,” Oleg Mukhamedshin, Rusal’s deputy chief executive officer and head of capital markets, said in an interview today.
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Source: Bloomberg
Grail Advisors Issues White Paper on Exchange-Traded Bond Funds
April 21, 2010--Grail Advisors, a leader in the development and distribution of actively-managed Exchange Traded Funds (ETFs), today announced the firm has issued a white paper on Fixed Income ETFs and the state of the ETF marketplace.
The paper -- "Fixed Income ETFs -- Bonds Get to Work"-- provides a backdrop on the use of fixed-income ETF securities as well as an analysis of the funds' evolution. Most importantly, the paper looks forward to development possibilities for the ETF industry, including the expanding marketplace for actively-managed ETFs.
"Given the sheer numbers of folks coming to the retirement market in the next several years, it's reasonable to think the demand for income and sensible fixed-income investments will expand," said William M. Thomas, CEO of Grail Advisors LLC. "Investors need to be aware of the opportunities and investment vehicles across all asset classes as they seek the best strategies for their unique situations."
The paper notes that while bond ETFs haven't gained as much attention as equity ETFs, growth in the absolute numbers and assets of fixed-income ETFs has been impressive. At the end of the third quarter 2009, TrimTabs Investment Research reports that assets invested in the fixed-income piece of the ETF market stood at around $91 billion, a 59% increase from a year earlier.
The Grail Advisors paper outlines five specific uses for bond ETFs as part of a broad investment strategy:
•"Bondetizing" cash,
•Managing cash flows,
•Diversifying credit exposure,
•Filling gaps or taking active views on sectors, and
•Shorting or hedging index exposure.
"The paper outlines why so many managers, advisors, and investors are increasingly moving out of traditional mutual funds and in to ETFs," said Thomas. "We're not at all surprised to see the impressive growth of worldwide ETF assets."
To receive a copy of Fixed Income ETFs -- Bonds Get to Work," call Grail Advisors at (415) 677-5870, or email kdinsbach@grailadvisors.com.
In 2010, Grail Advisors launched two fixed-income products with McDonnell Investment Management, the Grail McDonnell Core Taxable Bond ETF (GMTB) and the Grail McDonnell Intermediate Municipal Bond ETF (GMMB). In 2009, the firm launched the market's first ETF to use traditional active management, the Grail American Beacon Large Cap Value ETF (GVT), and the industry's first actively-managed ETFs using a single-manager approach, RP Growth ETF (RPX), RP Focused Large Cap Growth ETF (RWG), RP Technology ETF (RPQ), and RP Financials ETF (RFF).
Source: Grail Advisors