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Columbia Management To Enter Active ETF Market
April 15, 2011--Columbia Management Investment Advisers, LLC, today announced an agreement to acquire Grail Advisors, LLC, a registered investment adviser that offers actively managed exchange-traded funds (ETFs). The deal will provide Columbia Management with active ETF capabilities, adding to its broad product line-up. Active ETFs combine the potential benefits of traditional ETF investing with active portfolio management.
The transaction is expected to close in May. Terms are not disclosed.
“This jump starts our entrance into active ETFs,” said Colin Moore, chief investment officer of Columbia Management. “It will enhance our already deep product line-up and allow us to reach even more investors with our broad investment management capabilities. We intend to utilize this acquisition to build an extensive offering of actively managed ETFs over time.”
“As a leading asset manager, we work with a broad array of valued distribution partners, and we look forward to working with these firms to grow the actively managed ETF market, which can benefit them and their clients,” said Mike Jones, president of Columbia Management. “We offer a wide range of product solutions that is strengthened by the addition of active ETFs.”
ProShares Launches First ETFs Providing Magnified Exposure to the High Yield and Investment Grade Corporate Bond Markets
April 14, 2011--ProShares, a premier provider of alternative exchange traded funds (ETFs), today announced the launch of the first ETFs that provide magnified exposure to the high yield and investment grade corporate bond markets.
ProShares Ultra High Yield (NYSE: UJB) seeks to provide 2x the daily performance of the Markit iBoxx® $ Liquid High Yield Index, before fees and expenses. ProShares Ultra Investment Grade Corporate (NYSE: IGU) seeks to provide 2x the daily performance of the Markit iBoxx® $ Liquid Investment Grade Index, before fees and expenses. Both ETFs list on NYSE Arca today.
“On the heels of launching the first inverse ETFs on the high yield and investment grade corporate bond markets, we are pleased to offer the first leveraged ETFs on these segments of the fixed income landscape,” said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares' investment advisor. “With today’s launch, knowledgeable investors now have an even larger suite of geared ETFs to help manage their exposures to high yield and investment grade corporate bonds.”
ProShares launched the first inverse high yield bond ETF, ProShares Short High Yield (NYSE: SJB), and the first inverse investment grade corporate bond ETF in the United States, ProShares Short Investment Grade Corporate (NYSE: IGS), in the past month.
| ProShares | Ticker Symbol | Index | Daily Objective* | ||||||||
| New Leveraged High Yield and Investment Grade Corporate Bond ETFs | |||||||||||
| Ultra High Yield | UJB |
Markit iBoxx® $ |
2x | ||||||||
|
Ultra Investment |
IGU |
Markit iBoxx® $ |
2x | ||||||||
|
Existing Inverse High Yield and Investment Grade Corporate Bond ETFs |
|||||||||||
| Short High Yield | SJB |
Markit iBoxx® $ |
-1x | ||||||||
|
Short Investment |
IGS |
Markit iBoxx® $ |
-1x | ||||||||
|
* Before fees and expenses |
|||||||||||
State Street Global Advisors Introduces High Yield Municipal Bond SPDR® Exchange Traded Fund
April 14, 2011--State Street Global Advisors (SSgA), the asset management business of State Street Corporation (NYSE: STT), today announced that the SPDR Nuveen S&P High Yield Municipal Bond Exchange Traded Fund (ETF) (Symbol: HYMB) began trading on the NYSE Arca on April 14, 2011. Its annual expense ratio is 0.45 percent.
Developed by State Street Global Advisors and Nuveen Asset Management, a recognized leader in the municipal bond market, the SPDR Nuveen S&P High Yield Municipal Bond ETF is designed to provide investors with cost effective access to high yield municipal bonds, an asset class offering attractive after tax yields.
“In combining the advantages of federal tax free income with competitive, risk-adjusted returns, the potential benefits of high yield municipal bonds are attracting a growing number of sophisticated financial advisors and investors,” said James Ross, senior managing director and global head of SPDR Exchange Traded Funds at State Street Global Advisors. “The addition of the SPDR Nuveen S&P High Yield Municipal Bond ETF strengthens our family of municipal bond ETFs, which now features seven SPDR Nuveen ETFs with more than $2.2** billion in assets.”
Van Eck Launches Russia Small-Cap ETF (RSXJ)
First U.S.-based ETF to offer access to Russia’s small-cap sector;
Complements firm’s large-cap offering, Market Vectors Russia ETF
April 14, 2011--New York-based asset manager Van Eck Global has launched Market Vectors Russia Small-Cap ETF (NYSE Arca: RSXJ), the first U.S.-based exchange-traded fund (ETF) designed to give investors pure-play exposure to the developing local Russian economy as measured by the country’s small-capitalization companies.
Russia is currently among the least expensive of the major emerging markets from a valuation perspective. Russia’s stock market price/earnings ratio is just 6.6 times†, which represents a significant discount versus emerging markets stocks in general‡. Recently, its economy has been boosted by strong commodity prices, with Gross Domestic Product (GDP) expected to expand by 4.3 percent in 2011. Before today’s launch of RSXJ, U.S.-listed Russia ETFs had focused primarily on large-cap companies; companies in the underlying index for the Market Vectors Russia ETF (NYSE Arca: RSX), for example, have an average market capitalization of $20.3 billion. Companies included in these large-cap focused indexes are generally global enterprises with significant exposure to sectors of the economy deemed strategic by the Russian government, particularly energy. This may make large-cap Russia exposure appealing as a commodity or energy component of a portfolio, but leaves the domestic Russian consumer story largely untouched.
Schwab files with the SEC
April 14, 2011--Schwab has filed a post-effective amendment, registration statement with the SEC for Schwab U.S. Aggregate Bond ETF (SCHZ).
view filing
Russell, U.S. One Trust files with the SEC
April 14, 2011-Russell, U.S. One Trust has filed a fifth amended and restated application for exemptive relief with the SEC.
view filing
U.S. Mortgage Markets: What If Rates Rise?-Fitch Ratings Report,
April 14, 2011--Summary
U.S. residential mortgages are experiencing a transformation in risk profile. Although credit
problems continue to impair outstanding mortgages originated from 2005 to 2008, Fitch Ratings believes that strengthening underwriting standards (e.g. lower loan-to-value [LTV] ratios, higher quality borrowers, and simpler features) will mitigate credit risk on new originations.
However, a potentially significant risk on the horizon is the prospect of rising interest rates. Indeed, prior
to the financial crisis, interest rate risk was traditionally perceived as the dominant form of risk facing mortgage market participants.
With U.S. government debt at record levels and 10-year Treasury yields already starting to increase from their generational lows, interest rates may rise over the next several years. Rising rates pose risks to both mortgage lenders and investors in mortgage-backed securities (MBS), who over the past 20 years have benefited from a falling rate environment.
UBS MTF Trading Notification - Addition Of Exchange Traded Funds
April 14, 2011--As of start of trading on Monday 18th April 2011, Exchange Trade Funds (ETFs) will be available for trading on UBS MTF.
A list of 142 ETFs from 5 different markets will be added to our Stock Universe which is available upon request. UBS MTF Stock Universe file will reflect the addition of ETFs as of Monday 18th April 2011.
Testimony on Understanding the Implications and Consequences of the Proposed Rule on Risk Retention
Chairman Garrett, Ranking Member Waters, and members of the Subcommittee:
April 14. 2011---My name is Meredith Cross, and I am the Director of the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am pleased to testify on behalf of the Commission today on the topic of risk retention in securitizations. I appreciate the opportunity to discuss with you the Commission’s work in this area.
Background
Securitization generally is a financing technique in which financial assets, in many cases illiquid, are pooled and converted into instruments that are offered and sold in the capital markets as securities. The securities sold through these types of vehicles are called asset-backed securities, or ABS. This financing technique makes it easier for lenders to exchange payment streams coming from the loans for cash. Some of the types of assets that are financed through securitization include residential and commercial mortgages, agricultural equipment leases, automobile loans and leases, student loans and credit card receivables. Often, a bundle of loans is divided into separate securities with different levels of risks and returns. Payments on the loans typically are distributed to the holders of the lower-risk, lower-interest securities first, and then to the holders of the higher-risk securities.
The financial crisis focused attention on the possible misalignment of incentives of participants in the securitization process. Risk retention requirements have been discussed by some market participants as one potential way to improve the quality of asset-backed securities by better aligning the incentives of the sponsors and originators of the pool assets with investors’ incentives.
First Trust Advisors Announces the release of thirteen new ETF products into its AlphaDEX family of funds.
April 14, 2011--First Trust Advisors L.P. (First Trust) today announced the anticipated launch of thirteen new exchange-traded funds (ETFs) into its current line of sixteen AlphaDEX funds. The thirteen new ETFs are anticipated to begin trading on April 19 on the NYSE Arca. Nine of the funds are in the international arena and the other four round out the family with small- and mid- cap domestic funds.
AlphaDEX® International
FPA First
Trust Asia Pacific Ex-Japan AlphaDEX® Fund
FEP First
Trust Europe AlphaDEX® Fund
FLN First Trust Latin
America AlphaDEX® Fund
FBZ First Trust Brazil AlphaDEX®
Fund
FCA First Trust China AlphaDEX® Fund
FJP First
Trust Japan AlphaDEX® Fund
FKO First Trust South Korea
AlphaDEX® Fund
FDT First Trust Developed Markets Ex-US
AlphaDEX® Fund
FEM First Trust Emerging Markets AlphaDEX®
Fund
AlphaDEX® Domestic
FNY First Trust
Mid Cap Growth AlphaDEX® Fund
FNK First Trust Mid Cap
Value AlphaDEX® Fund
FYC First Trust Small Cap Growth
AlphaDEX® Fund
FYT First Trust Small Cap Value AlphaDEX®
Fund
“We are excited to add these thirteen new funds to the AlphaDEX®
family of ETFs, nearly doubling the existing line-up. The nine funds
comprising the AlphaDEX® International family of funds
consists of a diverse range of broad, regional and single country funds.
We believe the positive effects of globalization are going to continue
for years to come and investors may benefit from a globally diversified
investment portfolio, particularly in the emerging markets where GDP
growth for 2011 is projected to be 6.4% compared to 2.2% for advanced
economies, according to the International Monetary Fund.” said Dan
Waldron, Senior Vice President, Exchange-Traded Funds Strategist of
First Trust.
iShares Publishes Educational Materials on ETF Tax Efficiency
April 14, 2011--BlackRock, Inc. (NYSE: BLK) today announced that its iShares® Exchange Traded Funds (ETFs) business, the world's largest manager of ETFs, has published a fact sheet on tax efficiency and created a video to drive awareness among U.S. investors about ETFs' tax efficiency as the U.S. tax filing deadline approaches. Today, there are over 1,000 different ETFs available and iShares is emphasizing tax efficiency during the current tax season to foster understanding and to encourage investors to take a careful examination of products with tax consequences in mind.
In April, investors should be keenly aware of the tax ramifications on their investments, some of which may cause a drag on performance and produce an obstacle to realizing their identified financial goals. To compound the issue, many investment strategists believe we are now in a lower return market environment, where the impact of taxes on a portfolio may be further magnified.
ProShares Launches First ETFs Providing Magnified Exposure to the High Yield and Investment Grade Corporate Bond Markets
April 14, 2011--ProShares, a premier provider of alternative exchange traded funds (ETFs), today announced the launch of the first ETFs that provide magnified exposure to the high yield and investment grade corporate bond markets.
ProShares Ultra High Yield (NYSE: UJB) seeks to provide 2x the daily performance of the Markit iBoxx® $ Liquid High Yield Index, before fees and expenses.
ProShares Ultra Investment Grade Corporate (NYSE: IGU) seeks to provide 2x the daily performance of the Markit iBoxx® $ Liquid Investment Grade Index, before fees and expenses. Both ETFs list on NYSE Arca today.
On the heels of launching the first inverse ETFs on the high yield and investment grade corporate bond markets, we are pleased to offer the first leveraged ETFs on these segments of the fixed income landscape," said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares' investment advisor. "With today's launch, knowledgeable investors now have an even larger suite of geared ETFs to help manage their exposures to high yield and investment grade corporate bonds."
Morningstar Reports U.S. Mutual Fund and ETF Asset Flows Through March 2011
April 13, 2011—Morningstar, Inc. a leading provider of independent investment research, today reported estimated U.S. mutual fund and exchange-traded fund asset flows through March 2011. The pace of inflows into long-term mutual funds slowed slightly to $27.0 billion in March from approximately $27.9 billion in February, due largely to a reversal in U.S. stock flows. The asset class saw outflows of $934 million in March after taking in roughly $26.1 billion combined in January and February. Inflows for U.S. ETFs rose to $7.4 billion in March after reaching $6.6 billion in February despite outflows of $3.3 billion from U.S. stock ETFs, which typically drive industry inflows.
Diversified emerging-markets flows, which have attracted a significant amount of attention since the financial crisis began in late 2008, highlight a striking difference in the way American and European investors express their appetite for emerging-markets exposure. European investors have a much greater proportion of their money in emerging markets than American investors and more funds to choose from to gain emerging-markets exposure. But Americans have been adding aggressively to emerging-markets funds in recent years, and are increasingly choosing to invest in them through passively managed products. Six years ago, actively managed open-end mutual funds and ETFs comprised 79% of diversified emerging-markets assets, but today make up 53%.
ISE Announces Unveiling of U.S. Options Industry Room as Part of Ronald McDonald House New York Adopt a Room Program
April 13, 2011--The International Securities Exchange (ISE) today announced the unveiling of the U.S. Options Industry Room at Ronald McDonald House® New York.
ISE took part in Ronald McDonald House New York’s “Adopt-a-Room” program by donating the profit it generated from organizing the 2010 Options Industry Conference. A room dedication ceremony was held on April 12, 2011, in honor of the donation that was made by ISE on behalf of the entire U.S. options industry.
“I am very excited that ISE was able to make a donation to such an outstanding organization on behalf of the entire industry,” said Gary Katz, President and Chief Executive Officer of ISE. “Ronald McDonald House New York provides temporary housing and extensive support services for families who come to New York to seek life-saving treatments for a child with cancer. Our partnership with the House continues to be incredibly rewarding, and I am honored to share this experience with our industry peers.”
Global X Funds Launches Waste Management ETF (WSTE)
April 13, 2011 – Global X Funds, the New York based provider of exchange traded funds (ETFs), today launched the Global X Waste Management ETF (Ticker: WSTE). WSTE is approximately evenly divided among the disposal of hazardous waste, non-hazardous waste and recycling sectors.
The world’s population growth and burgeoning middle class is creating a steady rise in demand for energy and consumer products, with an ever-increasing need for sanitation and waste-disposal services. The proper disposal of hazardous and non-hazardous waste is a critical and growing aspect of many industries, especially as corporations are held more accountable for the waste they produce. Investors in WSTE may stand to benefit from mandatory safety standards and environmental regulations imposed on these companies, which enforce the removal of pesticides, petrochemicals, nuclear, and industrial waste. In addition, the process of recycling is critical for managing available resources and controlling the costs of basic materials. If the world’s appetite for raw materials continues to grow, recycling may stand to become increasingly cost effective and a more viable substitute for primary production.
“The Waste Management ETF (WSTE) provides relatively easy access to a global industry that continues to grow rapidly as the world’s population and individual incomes expand along with the need to manage waste and recycle resources,” said Global X Funds CEO Bruno del Ama.
The Global X Waste Management ETF tracks the Solactive Global Waste Management Index, which tracks the price movements in shares of companies which are active in the hazardous waste, non-hazardous waste and recycling industries. As of April 7, 2011, the three largest components of the index were Stericycle Inc., Waste Management Inc., and Veolia Environnement SA.
