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NYSE Liffe U.S. Passes 100,000 in Open Interest in Mini MSCI Index Futures
Open Interest Up 35% Since June Migration
Volumes Continue to Grow With Strong Customer Demand
August 18, 2011--NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext, today announced that Open Interest in the family of mini MSCI Index futures trading on the exchange surpassed the 100,000 contract milestone.
In just 8 weeks since completing the contract migration from CME of contracts based on MSCI Emerging Markets and MSCI EAFE indices, Open Interest in the mini MSCI complex has increased more than 35% to 102,214 as of August 16, 2011.
iShares Announces Launch of Emerging Markets Small Cap Fund
August 18, 2011--BlackRock, Inc. (NYSE: BLK) today announced that its iShares® Exchange Traded Funds (ETFs) business, the world's largest manager of ETFs, has launched the iShares MSCI Emerging Markets Small Cap Index Fund (NYSE Arca: EEMS).
By adding the new iShares ETF, iShares complements its robust emerging market product suite and enables investors access to the next generation of emerging market growth.
"In the long-term, investors can look to emerging market small cap stocks as the driver of the next wave of emerging market growth," said Russ Koesterich, iShares Global Chief Investment Strategist at BlackRock. "In the short-term, emerging markets may be more defensively positioned than conventional wisdom might suggest."
"Because emerging market small cap stocks offer greater exposure to local consumer sectors --and those sectors are more tied to domestic demand than foreign demand -- they should be better insulated from issues facing developed markets today," said Koesterich.
Noel Archard, Head of US iShares Product at BlackRock, said, "With the new iShares Emerging Markets Small Cap ETF investors can efficiently access the next generation of small cap companies with 100% local exposure. By combining the new iShares Emerging Markets Small Cap ETF with the broadly diversified iShares MSCI Emerging Markets ETF, investors can gain access to 100% of the investable emerging market universe with no overlap in core holdings."
iShares Launches Two New Target Date ETFs that Expand the iShares Target Date Series
August, 18, 2011 - BlackRock, Inc. (NYSE: BLK) today announced that its iShares® Exchange Traded Funds (ETFs) business, the world's largest manager of ETFs, has launched two new iShares ETFs on the NYSE Arca. The funds are the iShares S&P Target Date 2045 (NYSEArca: TZW) and iShares S&P Target Date 2050 (NYSEArca: TZY) Index Funds.
The new funds provide a continuation of the existing iShares target series products, which are designed to provide investors with a diversified portfolio of iShares ETFs within an efficient ETF structure and can help investors prepare for an anticipated future need for funding a life event such as retirement.
"Implementing target date funds in retirement portfolios can be an increasingly attractive strategy for investors," said Chip Castille, Managing Director and head of BlackRock's U.S. and Canada Defined Contribution Group. "Target date products each offer a diversified, cost-effective way to help investors meet their investment needs. They also help mitigate common investor pitfalls such as poor asset allocation and failure to make portfolio changes over time, two actions that can reduce portfolio returns."
The two funds are benchmarked to the S&P Target Date 2045/2050 indices, which are designed to provide exposure to a diversified array of asset classes. The indices are rebalanced monthly, while on a yearly basis S&P conducts a survey of target date funds and derives an allocation strategy for the indices. S&P uses iShares ETFs to track each asset class.
Canada Private Equity Investments Up 40% In 2Q
August 17, 2011--The second quarter marked the most active period for Canada's buyout and private-equity market since the fourth quarter of 2008, while the venture-capital sector continued to struggle, underscoring that investors see more risk in early-stage investing.
The number of buyout and private-equity deals jumped 40% year-over-year, as total investments hit C$5.7 billion (US$5.8 billion), fueled in part by the first C$1 billion-plus investments in over two years, Canada's Venture Capital & Private Equity Association, or CVCA, reported Wednesday. The deals included the C$2.1 billion purchase of Husky International Ltd. by OMERS Private Equity and Berkshire Partners from Onex Corp. (OCX.T) and the acquisition of Timberwest Forest by B.C. Investment Management Corp. and PSP Investment Board.
Cantor Fitzgerald & Co. Announces the Launch of Its ETF Arbitrage Business with the Appointment of Market Veteran Dan Segal
August 17, 2011--Cantor Fitzgerald & Co. announced today the appointment of Dan Segal, formerly of SEG Capital, to launch and build its ETF Arbitrage business based in New York. Cantor Fitzgerald is committed to being a principal trader in the global ETF market by providing customers with competitive two sided ETF markets, encompassing the entire ETF spectrum in full service execution, research and market color.
Cantor also appointed Joseph La Grasta, Todd Alberico, and Kanellas Cafcules as ETF Trader/Market Makers. As Managing Director of the ETF Arbitrage Group, Mr. Segal will report to Jarred Kessler, Global Head of Equities.
Van Eck Global Introduces Mortgage REIT Income ETF (MORT)
ETF offers yield-seeking investors pure play exposure to mortgage REIT market
August 17, 2011--New York-based asset manager Van Eck Global announced today that it has launched Market Vectors Mortgage REIT Income ETF (NYSE Arca: MORT), an exchange-traded fund (ETF) offering pure play exposure to the mortgage REIT marketplace.
“Yields from mortgage REITs have been higher in recent years than those provided by equity REITs and a number of other income-oriented products,” said Jan van Eck, Principal at Van Eck Global. “We’re pleased to bring out MORT, an EFT which we think could be a valuable portfolio building tool for yield-focused investors in this low-yield environment.”
MORT is intended to track, before fees and expenses, the performance of the Market Vectors Global Mortgage REITs Index (ticker: MVMORTTR), a capitalization-weighted index that requires constituent companies to derive at least 50 percent of their revenues from mortgage REITs. This includes companies and trusts which are primarily engaged in the purchase or service of commercial or residential mortgage loans or mortgage-related securities.
The Index had 25 constituents as of July 31, 2011, all of which were REITs focused on residential mortgages, commercial mortgages or a mix of both. Unlike other indexes used in mortgage REIT-focused ETFs, the Index does not include mortgage finance companies or savings associations.
iShares files with the SEC
August 17, 2011--iShares has filed a post-effective Amendment No. 137 , registration statement with the SEC for the iShares MSCI Emerging Markets Small Cap Index Fund.
view filing
DTCC And Markit Launch First DVP Platform For The Syndicated Loan Market -
Settlement Date Coordination and Cash on Transfer services simultaneously transfer cash and loan assets on settlement date
August 17, 2011-- The Depository Trust & Clearing Corporation (DTCC), in conjunction with Markit, today announced the launch of its Loan/SERV Cash on Transfer service.
The DTCC service, coupled with Markit’s loan settlement platform, gives the global syndicated loan market its first delivery-versus-payment (DVP) platform for secondary loan trading. The service is a major advance in reducing settlement risk in the loan market.
In the current trading process, there is no assurance that cash settles simultaneously with the change of ownership recorded by agent banks at the time of trade settlement. This leaves the seller on each trade at risk of no longer being the lender of record of the loan asset without ensuring that cash payment has been received.
Venezuela's Chavez Plans To Nationalize Gold Industry
Chavez says he will introduce "decree to take the gold sector"
Government looks to take over production, ramp up international reserves
Chavez hinted in May he may centralize control over gold
Rusoro CEO says he's not worried about expropriation
August 17, 2011--Venezuelan President Hugo Chavez said Wednesday he plans to nationalize the country's gold industry in a bid to take over production and cut down on smuggling, while ramping up international reserves.
Speaking on state television via telephone, the leftist leader said he will introduce a new decree in the coming days to put exploration and extraction of gold into the government's hands.
It will be "a decree to take the gold sector," which still remains in the hands of a "mafia and smugglers," Chavez said. "We don't only have oil wealth, we have here one of the largest reserves of gold in the world ... Let's convert it into our international reserves because gold is increasing in its value."
Venezuela has for years talked about cracking down on illegal gold mining and smuggling along the country's sparsely populated southeast region. At the same time, however, many critics say years of insufficient investment and government red tape have limited extraction of the precious metal.
Exchange Traded Concepts files with the SEC
August 17, 2011--Exchange Traded Concepts Trust has filed a post-effective amendment, registration statement with the SEC for the
KraneShares China Consumer Luxury ETF
KraneShares China Alternative Energy ETF
KraneShares China Internet ETF
KraneShares China Consumer Staples ETF
KraneShares China Consumer Discretionary ETF
KraneShares China Urbanization ETF
KraneShares China Five Year Plan ETF
Claymore files with the SEC
August 17, 2011--Claymore has filed a post-effective amendment, registration statement with the SEC for the Guggenheim Shipping ETF.
view filing
AdvisorShares files with the SEC
August 16, 2011--AdvisorShares has filed a post-effective mendment, registration statement with the SEC for the STAR™ Global Buy-Write ETF
NYSE Arca Ticker: VEGA.
view filing
DB Global Equity Research: North America: ETP Market records $7.6bn in outflows
August 16, 2011--Major outflows follow dimmer economic outlook and high market volatility
For somebody looking at weekly figures it would be easy to miss the most active and volatile week since March 2009. While the S&P 500 closed just 1.72% lower relative to the previous Friday, following the historic S&P downgrade of the US Long Term debt from AAA to AA+, the index jumped up and down +/- 5% during the week.
The total US ETP flows from all products were $7.6bn of outflows last week vs $5.6bn of outflows the previous week, setting the YTD weekly flows average at +$1.7bn. US ETP AUM lost $17bn, closing at $1.00 trillion or 0.7% up YTD.
Long only equity ETPs recorded $4.6bn of outflows last week vs $7.8bn of outflows the previous week. From a geographic allocation perspective, most segments were in red again, US-focused, EM, and DM ex US ETPs all experienced outflows of -$2.6bn, -$1.4bn and -$753m last week, respectively.
Long-only fixed Income ETPs recorded outflows of $710m last week. Sovereign ETPs received $318m in inflows; while Corporates recorded the largest outflows (-$1.1bn). Commodity ETPs recorded outflows of $1.5bn last week. At a sub sector level, Crude Oil ETPs recorded the largest inflows with $0.59bn; while Gold products had $1.1bn in outflows.
The overall reading of last week’s long only ETP flows is that the risk off trade keeps expanding in size. During this period, long only equity ETPs with the additional $4.6bn of outflows totaled $5.6bn of outflows since the beginning of the quarter (-$15bn in the last three weeks) (Figure 1).
In addition to risk off trades, flows data also suggests that investors were engaged in a variety of market timing trades in an attempt to exploit any possible opportunity arising from these volatile markets. Gold, Equity Energy sector, and Commodity Energy products (with flows of -$1.1bn, +$1.0bn, and +$0.57bn, respectively) were among such trades. (Figure 2)
New Launch Calendar: new India Consumer ETF
There was one new product launched in the NYSE Arca during the last week. The new ETP offers access to the Indian Consumer sectors (
Turnover Review: trading soars as VIX approaches March 2009 levels
Total weekly turnover increased by 19.9% to $871bn vs. $727bn in the previous week. The largest increase was on Equity ETP turnover which rose by $120bn or 18.7% to $764bn. Commodity ETPs turnover increased by $15.3bn to $60bn last week, mainly driven by Gold ETPs. Finally, Fixed Income products turnover increased by 27.1% totaling $41.4bn at the end of last Friday.
Assets Under Management (AUM) Review:
AUM growth almost flat YTD
Following another round of market turmoil, ETP AUM dropped by $17bn or 1.7% falling to $1.00 trillion as of the end of last Friday. Assets on a YTD basis have recorded just a $7.3bn (0.7%) increase.
Invesco PowerShares Announces Dividend Distribution for the PowerShares S&P 500® Low Volatility Portfolio (SPLV)
August 16, 2011 – Invesco PowerShares Capital Management LLC, a leading global provider of exchange-traded funds (ETFs) with more than $57 billion in franchise assets, today announced the dividend distribution for the recently listed PowerShares S&P 500® Low Volatility Portfolio (SPLV).
“Research studies have shown that U.S. stocks with low volatility tend to provide high risk-adjusted returns,1" said Ben Fulton, Invesco PowerShares managing director of global ETFs. “For advisors seeking to allocate lower volatility into the portfolio core, the PowerShares S&P 500® Low Volatility Portfolio (SPLV) may provide a better degree of protection in down cycles while still participating in upward trending cycles. SPLV is currently yielding 55 percent more than the S&P 500® Index.2"
Fitch affirms US credit rating
August 16, 2011--Fitch Ratings said on Tuesday it affirmed the United States' top-notch credit rating at AAA, giving the world's largest economy a reprieve after it was downgraded by Standard & Poor's little more than a week ago.
Fitch said the outlook for the rating was stable.
"The affirmation of the US 'AAA' sovereign rating reflects the fact that the key pillars of (the) US' exceptional creditworthiness remains intact: its pivotal role in the global financial system and the flexible, diversified and wealthy economy that provides its revenue base," Fitch said.
