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Don't Miss the NASDAQ.com Special Report from the CME Global Financial Leadership Conference
November 3, 2009-For three days, leading financial decision makers and opinion leaders are convening at the exclusive CME Global Financial Leadership Conference to discuss the state of the economy and the year ahead. Featured speakers include:
*Paul Volcker, Former Chairman of the Federal Reserve
Fareed Zakaria, Editor of Newsweek International
Chrystia Freeland, U.S. Managing Editor, Financial Times
Robert Greifeld, Chief Executive Officer, NASDAQ OMX
T. Boone Pickens, Energy Activist and Chairman, BP Capital Management
Francis S.C. Chu, Executive Director, Reserves Management, Hong Kong Monetary Authority
Craig Broderick, Chief Risk Officer, Goldman Sachs
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Source: NASDAQ OMX
PIMCO Lists Two PIMCO U.S. Treasury Index Funds on NYSE Arca
November 03, 2009 –- NYSE Euronext (NYX) announced that its wholly-owned subsidiary, NYSE Arca, began trading two PIMCO U.S. Treasury Index Funds on Monday, November 2, 2009. The ETFs are sponsored by PIMCO ETF Trust.
Name and Ticker Symbol of the Two PIMCO U.S. Treasury Index Funds:
PIMCO 3-7 Year U.S. Treasury Index Fund– Ticker Symbol “FIVZ”
PIMCO 25+ Year Zero Coupon U.S. Treasury Index– Ticker Symbol “ZROZ”
PIMCO 3-7 Year U.S. Treasury Index Fund
The Fund’s investment objective is to provide total return that closely corresponds, before fees and expenses, to the total return of The BofA Merrill Lynch 3-7 Year US Treasury IndexSM, which is an unmanaged index comprised of U.S. dollar denominated sovereign debt securities publicly issued by the U.S. Treasury having a maturity of at least three years and less than seven years.
PIMCO 25+ Year Zero Coupon U.S. Treasury Index Fund
The Fund’s investment objective is to provide total return that closely corresponds, before fees and expenses, to the total return of The BofA Merrill Lynch Long US Treasury Principal STRIPS IndexSM, which is an unmanaged index comprised of long-maturity Separate Trading of Registered Interest and Principal of Securities (STRIPS) representing the final principal payment of U.S. Treasury bonds. The principal STRIPS comprising the underlying index must have 25 years or more remaining term to final maturity and must be stripped from U.S. Treasury bonds having at least $1 billion in outstanding face value.
Source: NYSE Euronext
First 4 Schwab ETFs Launched Successfully on NYSE
November 3, 2009--November 3, 2009 – Charles Schwab Investment Management, one of the nation's largest asset management companies, today visited the NYSE and rang the opening bell to celebrate the launch of the first Schwab ETFs.
"We are pleased to welcome Schwab as an ETF issuer to NYSE Arca," said Lisa Dallmer, EVP, Exchange Traded Products and Global Indexes, NYSE Arca. "This is Schwab's first foray into the branded ETF space and we wish them well in this product sector. I hope To celebrate this special occasion, Peter Crawford, Senior Vice President, Charles Schwab & Co., Investment Management Services, rang The Opening Bell. He was joined by Jeff Mortimer, Chief Investment Officer, Charles Schwab Investment Management, and Jon de St Paer, Vice President, Charles Schwab & Co. , Investment Management Services. Also in attendance was Rich Policastro, Senior Managing Director of Schwab Advisor Services.
Schwab’s First ETFs:
Schwab U.S. Broad Market ETF (SCHB)
Schwab U.S. Large-Cap ETF (SCHX)
Schwab U.S. Small-Cap ETF (SCHA)
Schwab International Equity ETF (SCHF)
Source: NYSE Euronext
Treasury Announces Marketable Borrowing Estimates
November 3, 2009-The U.S. Department of the Treasury today announced its current estimates of marketable borrowing for the October – December 2009 and the January – March 2010 quarters:
During the October – December quarter, Treasury expects to issue $276 billion in net marketable debt, assuming an end-of-December cash balance of $85 billion, which includes $15 billion for the Supplementary Financing Program (SFP).
The borrowing estimate is $209 billion lower than announced in July 2009. The decrease in borrowing is primarily related to cash balance adjustments related to the SFP, and lower outlays offset partially by lower receipts.
During the January - March quarter, Treasury expects to issue $478 billion in net marketable debt, assuming an end-of-March cash balance of $45 billion, which includes $15 billion for the SFP.
These estimates do not include any incremental borrowing needs that would result from a potential increase in issuance under the SFP.
During the July – September 2009 quarter, Treasury issued $393 billion in net marketable debt, finishing the quarter with a cash balance of $275 billion, of which $165 billion was attributable to the SFP. In July, Treasury had estimated $406 billion in marketable borrowing for the quarter, assuming an end-of-September cash balance of $270 billion. The decrease in borrowing was primarily a result of lower outlays.
Additional financing details relating to Treasury's Quarterly Refunding will be released at 9:00 a.m. on Wednesday, November 4.
Reports:Sources and Uses
Source: U.S. Department of the Treasury
Alan B. Krueger-Statement for the Treasury Borrowing Advisory Committee of the SIFMA
November 3, 2009--Economic conditions improved in the third quarter of 2009. GDP growth resumed following a year of steady contraction. The third-quarter rise reflected a jump in consumer spending but activity also picked up in a number of other sectors, including housing. While many third-quarter measures improved, the labor market remained weak, even as the pace of job losses slowed. Conditions in financial and credit markets continued to improve. The economy's recent improvement is partly due to the broad array of measures taken by the Administration and Congress to encourage growth and restore stability in credit and financial markets; at the same time, there are encouraging signs that the private sector is starting to expand again on its own.
Real GDP rose 3.5 percent at an annual rate in the third quarter. Growth in the summer was the strongest in two years and followed a record four quarters of steep decline, during which real GDP fell by nearly 4 percent. Federal outlays provided crucial support to the economy during the June-to-September period, but private expenditures rose for the first time since the spring of 2008.
Consumer spending, which accounts for 70 percent of GDP, posted a solid 3.4 percent gain (annual rate) in the third quarter. A surge in motor vehicle purchases spurred by the Cash for Clunkers program accounted for a substantial portion of the jump in consumption, but even excluding the pickup in autos, consumer demand strengthened notably in the third quarter. For example, spending on services and non-durable goods posted their largest quarterly gain since the third quarter of 2007.
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Source: U.S. Department of the Treasury.
Pimco files with the SEC
Novemeber 3, 2009-PIMCO has filed a prospectus with the SEC for the following funds
SHORT DURATION
PIMCO Enhanced Short Maturity Strategy Fund-Ticker Symbol:MINT
CUSIP: 72201R833
PIMCO Government Limited Maturity Strategy Fund-Ticker Symbol:GOVY
CUSIP: 72201R841
PIMCO Prime Limited Maturity Strategy Fund-Ticker Symbol:PPRM
CUSIP: 72201R858
PIMCO Short Term Municipal Bond Strategy Fund-Ticker Symbol:Ticker Symbol:
SMMU
CUSIP: 72201R874
PIMCO Intermediate Municipal Bond Strategy Fund-Ticker Symbol:MUNI
CUSIP: 72201R866
view filing
Source: SEC.gov
Vanguard’s Low ETF Fees Help Late Arrival Gain Market Share
November 3, 2009--Vanguard Group Inc., the largest U.S. manager of stock and bond mutual funds, is gaining market share in exchange-traded funds, a business its founder John Bogle has criticized for encouraging speculation.
Vanguard, the third-largest sponsor of ETFs, captured more than 30 percent of the money flowing into the business this year by charging an average fee of 15 cents for every $100 in assets, compared with 54 cents for the industry, according to Morningstar Inc. The Valley Forge, Pennsylvania-based firm’s ETF sales trailed only Barclays Global Investors, based on data through the third quarter.
“If the price is low enough, investors will vote with their wallets,” Scott Burns, director of ETF analysis at Chicago-based Morningstar, said in a telephone interview.
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Source: Bloomberg
Charles Schwab Offers First Exchange Traded Funds (ETFs) That Trade Commission-Free Online at Schwab
November 2, 2009--Charles Schwab, a marketplace leader of exchange traded funds, today announced the launch of its first proprietary exchange-traded funds: eight new Schwab-managed ETFs with low operating expense ratios and commission-free online trading for clients in their Schwab accounts.
Schwab has been an innovator on behalf of investors and savers for decades and has endeavored to help them become financially fit. Today, we continue this tradition by offering investors an exceptional value through low cost access to domestic and global equity markets,” said Walt Bettinger, Schwab Chief Executive Officer. “Our low cost ETFs can be purchased and sold through Schwab.com commission free. This means that investors of all kinds, and especially those who wish to dollar cost average modest sums, can do so in a cost-effective way. We believe there simply isn’t an easier way to buy and sell ETFs than what we’re making available to all Schwab clients.”
Starting November 3, Charles Schwab Investment Management, Inc. (CSIM) will launch its first four ETFs – Schwab U.S. Broad Market ETFTM, Schwab U.S. Large-Cap ETF TM Schwab U.S. Small-Cap ETFTM and Schwab International Equity ETFTM. In December, CSIM will offer four additional ETFs – Schwab U.S. Large-Cap Growth ETFTM, Schwab U.S. Large-Cap Value ETFTM, Schwab International Small-Cap Equity ETFTM and Schwab Emerging Markets Equity ETFTM.
The new Schwab exchange traded funds have some of the lowest operating expense ratios on the market and can be bought and sold without commissions in Schwab accounts if purchased online, regardless of the number of shares traded. They are designed to be core holdings in a diversified portfolio and can be purchased in blocks as small as one share per trade.
| Schwab ETF Name | Schwab OER | Vanguard OER | BGI OER | SSGA OER | ||||
| Schwab U.S. Broad Market ETF | SCHB 0.08% | VTI 0.09% | IWV 0.21% | TMW 0.20% | ||||
| Schwab U.S. Large-Cap ETF | SCHX 0.08% | VV 0.13% | IVV 0.09% | SPY 0.09% | ||||
| Schwab U.S. Large-Cap Growth ETF | SCHG 0.15% | VUG 0.15% | IVW 0.18% | ELG 0.20% | ||||
| Schwab U.S. Large-Cap Value ETF | SCHV 0.15% | VTV 0.15% | IVE 0.18% | ELV 0.20% | ||||
| Schwab U.S. Small-Cap ETF | SCHA 0.15% | VB 0.15% | IJR 0.20% | DSC 0.25% | ||||
| Schwab International Equity ETF | SCHF 0.15% | VEA 0.16% | EFA 0.34% | CWI 0.34% | ||||
| Schwab International Small-Cap Equity ETF | SCHC 0.35% | VSS 0.38% | SCZ 0.40% | GWX 0.59% | ||||
| Schwab Emerging Markets Equity ETF | SCHE 0.35% | VWO 0.27% | EEM 0.72% | GMM 0.59% | ||||
|
Source: Expense Ratios from most recent prospectus filings as of 9/30/09. |
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Commission-free online trading of Schwab ETFs will be available to individual investors at Schwab, to the more than 6,000 independent investment advisor firms who use Schwab’s custodial services through Schwab Advisor Services and through Schwab retirement accounts that permit trading of ETFs. The Schwab ETFs will be listed on NYSE Arca, and can also be traded on other exchanges.
“Investors were first attracted to ETFs in the 1990s because they provided a liquid, low-cost and more tax-efficient way to invest in and trade entire segments of the market,” said Peter Crawford, senior vice president at Schwab. “These ETFs will accelerate that growth and appeal to a broad range of investors: from registered investment advisors, to individual investors. Only 16% of our individual investors currently own ETFs and 43% of advisors who custody with Schwab told us this summer in our semi-annual Advisor Outlook Study, that they plan to increase their usage of ETFs in the next six months. This makes them vehicles with tremendous potential for growth.”
Representing an additional step in the firm’s ongoing commitment to value in index investing, today’s ETF announcement follows changes Schwab made on May 5, 2009 when the firm reduced expense ratios and lowered investment minimums on its equity index mutual funds
Schwab Exchange Traded Fund Line-up and Launch Date
|
11/3 ETF Introduction |
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| ETF | Symbol | Index | OER |
Morningstar Category |
||||
| Schwab U.S. Broad Market ETF | SCHB | Dow Jones U.S. Broad Stock Market IndexSM | .08% | Large Blend | ||||
| Schwab U.S. Large-Cap ETF | SCHX | Dow Jones U.S. Large-Cap Total Stock Market IndexSM | .08% | Large Blend | ||||
| Schwab U.S. Small-Cap ETF | SCHA | Dow Jones U.S. Small-Cap Total Stock Market IndexSM | .15% | Small Blend | ||||
| Schwab International Equity ETF | SCHF | FTSE Developed ex-US Index | .15% | Foreign Large Blend | ||||
|
December Introduction |
||||||||
| ETF | Symbol | Index | OER |
Morningstar Category |
||||
| Schwab U.S. Large-Cap Growth ETF | SCHG | Dow Jones U.S. Large-Cap Growth Total Stock Market IndexSM | .15% | Large Growth | ||||
| Schwab U.S. Large-Cap Value ETF | SCHV | Dow Jones U.S. Large-Cap Value Total Stock Market IndexSM | .15% | Large Value | ||||
| Schwab International Small-Cap Equity ETF | SCHC | FTSE Developed Small Cap ex-US Liquid Index | .35% | Foreign Small/Mid Cap | ||||
| Schwab Emerging Markets Equity ETF | SCHE | FTSE All-Emerging Index | .35% | Diversified Emerging Markets | ||||
Source: The Charles Schwab Corporation
Charles Schwab Licenses Five Dow Jones U.S. Total Stock Market Indexes for First-Ever Lineup of ETFs
November 2, 2009--Dow Jones Indexes, a leading global index provider, today announced that Charles Schwab has licensed five Dow Jones U.S. Total Stock Market Size and Style indexes to underlie the domestic portion of their first-ever suite of exchange-traded funds (ETFs).
Launching Tuesday on the New York Stock Exchange are ETFs based on the following indexes: Dow Jones U.S. Broad Stock Market Index, Dow Jones U.S. Large-Cap Total Stock Market Index and Dow Jones U.S. Small-Cap Total Stock Market Index. Subsequent launches will include ETFs based on the Dow Jones U.S. Large-Cap Growth Total Stock Market Index and the Dow Jones U.S. Large-Cap Value Total Stock Market Index.
"The Dow Jones Total Stock Market Indexes are designed to be representative and replicable measurement tools, which makes them an excellent choice to underlie passive investment vehicles," said Michael A. Petronella, president, Dow Jones Indexes. "Schwab's decision to launch its first offering of domestic ETFs on the Dow Jones Total Stock Market Indexes reflects the indexes' wide acceptance by the marketplace and gives investors access to clear segments of the U.S. stock market."
"Schwab is pleased to introduce an impressive array of Exchange-Traded Funds for investors. We are delighted to collaborate with Dow Jones Indexes, a highly reputable partner, in using their indexes for our ETFs. We are certain our launch will prove highly successful," said Peter Crawford, senior vice president, Charles Schwab.
The five indexes are subsets of the Dow Jones U.S. Total Stock Market Index, which measures the performance of all U.S. stocks with readily available prices. The Dow Jones U.S. Broad Stock Market Index includes all companies in the Dow Jones U.S. Total Stock Market Index except for those securities defined as micro-cap stocks. The Dow Jones U.S. Large-Cap Total Stock Market Index and Dow Jones U.S. Small-Cap Total Stock Market Index reflect different size segments of U.S. equities while the Dow Jones U.S. Large-Cap Growth and Value Total Stock Market Indexes classify large-cap stocks as either "growth" or "value" style companies.
The Dow Jones U.S. Total Stock Market Indexes are weighted by float-adjusted market capitalization and index components are reviewed on a semi-annual basis, in March and September. Stocks are added and/or deleted monthly as the Dow Jones U.S. Total Stock Market Index is updated.
As of Friday, October 30, 2009, the Dow Jones U.S. Broad Stock Market Index is up 16.02% year to date, while the Dow Jones U.S. Large and Small-Cap Total Stock Market Indexes are up 15.06% and 24.94%, respectively. The Dow Jones U.S. Large-Cap Growth and Value Total Stock Market Indexes gained 23.61% and 6.84%, respectively, so far this year.
More information on the Dow Jones Total Stock Market Indexes can be found on www.djindexes.com.
Source: Dow Jones Indexes
FTSE Licenses Three International Benchmarks to Schwab for Creation of ETFs
November 2, 2009--FTSE Group (FTSE), the leading global index provider, today announced that they have licensed three international equity indexes to Charles Schwab Investment Management for the creation of three new exchange traded funds (ETFs). The funds will be among Schwab’s first ETF offerings, and will track the FTSE All Emerging Index, the FTSE Developed ex-US Index, and the FTSE Developed Small Cap ex-US Liquid Index.
The FTSE All Emerging Index tracks the performance of large- and mid- cap stocks from 22 emerging markets including Brazil , China , Taiwan and India . The FTSE Developed ex-US Index is comprised of large- and mid-cap stocks from 24 developed markets, excluding the United States. Companies from the United Kingdom and Japan , followed by Canada , Germany and Switzerland make up a majority of the index. The FTSE Developed Small Cap ex-US Liquid Index is made up of small-cap stocks from 24 developed markets, excluding the United States. An enhanced liquidity screen ensures that the small-cap stocks in this index have a free-float adjusted market capitalization of at least $150m USD. Of the largest companies in the index, the majority are Canadian.
Over the 5-year trailing period, the FTSE All Emerging Index has consistently outperformed both the FTSE Developed ex-US and FTSE Developed Small Cap ex-US Liquid indexes. One reason for this outperformance is that the FTSE All Emerging Index is heavily weighted with Brazilian and Chinese stocks, which make up 19.36% and 17.87% of the index respectively, and its performance has been driven by the continued growth of these two economies.
“We are pleased that Schwab has selected FTSE benchmarks as the basis for their first international exchange traded fund offerings,” said FTSE CEO Mark Makepeace. “FTSE’s Global Equity Index Series consists of transparent, liquid and rules-based benchmarks that continue to be attractive to issuers of ETFs and other tradeable products worldwide.” Added Peter Crawford, senior vice president at Charles Schwab, “Schwab is pleased to introduce an impressive array of Exchange Traded Funds. We were delighted to collaborate with FTSE, a highly reputable partner, in their development.”
Source: FTSE