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Active ETFs come out of hibernation
April 5, 2011--The momentum behind actively managed exchange traded funds keeps building in the US, as Eaton Vance gains regulatory clearance and ETF pioneer State Street Global Advisors enters the queue.
In an order issued last week, the Securities and Exchange Commission granted Eaton Vance’s year-old request to launch a suite of five fixed-income active ETFs and potentially others, including active equity funds. Indeed, since Eaton Vance’s initial filing with the SEC, it has acquired Managed ETFs, which holds multiple patents for non-transparent trading of actively managed funds.
Van Eck Global launches Market Vectors Germany Small-Cap ETF
First U.S.-based ETF to offer access to German small-cap sector
April 5, 2011--New York-based asset manager Van Eck Global has launched Market Vectors Germany Small-Cap ETF (NYSE Arca: GERJ), the first exchange-traded fund (ETF) designed to give investors pure-play exposure to Europe’s largest economy.
The German economy is the fourth largest in the world as measured by gross domestic product (GDP). The country has bounced back quickly from the worldwide recession, expanding at an annual rate of 3.6 percent in 2010, with unemployment declining to its lowest rate since 1992. A substantial portion of the country’s economy is made up of small companies that have a history of dominating highly specialized industry sectors such as machine tools, auto parts, printing presses, and electrical equipment. Many of these companies are significant exporters, allowing Germany to maintain its share of world trade over the past decade. The rapidly growing countries of Asia comprise Germany’s second-largest export market.
ProShares Launches Two New Inverse Treasury ETFs
Expands Lineup of Inverse Bond ETFs to Eight
April 5, 2011--ProShares, a premier provider of alternative exchange traded funds (ETFs), today announced the launch of two new ETFs that provide inverse exposure to the U.S. Treasury market.
The ProShares UltraShort 3-7 Year Treasury (NYSE: TBZ) is the first ETF in the United States to provide inverse exposure to the 3-7 year segment of the U.S. Treasury market. TBZ seeks to provide -2x the daily performance of the Barclays Capital U.S. 3-7 Year Treasury Bond Index, before fees and expenses. The ProShares Short 7-10 Year Treasury (NYSE: TBX) seeks to provide -1x the daily performance of the Barclays Capital U.S. 7-10 Year Treasury Bond Index, before fees and expenses. Both ETFs list on NYSE Arca today.
“Our lineup of inverse bond ETFs has been extremely popular, garnering more than $7 billion of assets since launching less than three years ago,” said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares' investment advisor. “We are pleased to add two additional ETFs to the set of tools available to investors concerned about a possible pullback in bonds.”
Vanguard to Challenge BlackRock in European ETF Market
April 5, 2011- Vanguard Group Inc., the world’s biggest mutual-fund company, plans to start selling exchange- traded funds in Europe this year, betting that the passive, low- cost style of investing that has changed asset management in the U.S. will do the same abroad.
The decision by Vanguard, based in Valley Forge, Pennsylvania, is a challenge to its New York rival BlackRock Inc., which dominates the $332 billion ETF market in Europe. BlackRock, the world’s largest money manager, is forecasting European sales of the funds may grow as much as 30 percent a year. Vanguard last year took the No. 1 spot for U.S. ETF sales.
“Passive investing, in general, is nowhere near as adopted in Europe as it is in the U.S.,” Scott Burns, head of ETF research at research firm Morningstar Inc., said in an interview. “There’s real potential that Vanguard is waiting to tap.”
CFTC to Hold Open Meeting on Thirteenth Series of Proposed Rules under the Dodd-Frank Act SPDR files with the SEC BlackRock New Report ETF Landscape: Latin America Industry Review - April 2011 At the end of February 2011, there were 422 ETF/ETP listings in Latin America, of which 26 are locally domiciled ETFs/ETPs with assets of US$10.2 Bn from four providers on two exchanges (BM&F Bovespa, Mexican Stock Exchange), while 396 are cross listings from fifteen providers on two exchanges (Mexican Stock Exchange, Bolsa Comercio Santiago). At the end of February 2011, there were 363 ETFs/ETPs listed in Mexico, 52 ETFs/ETPs listed in Chile, 313 ETFs registered for sale in Chile and 296 ETFs/ETPs registered for sale in Peru. 2011 YTD, assets in ETFs/ETPs listed in Latin America have increased by 0.9% to US$10.2 Bn. This compared to the 2.8% decrease in the MSCI EM Latin America Index in US dollar terms over the same period.
Year to date, ETFs/ETPs listed in Latin America have seen net inflows of US$0.4 Bn YTD, where ETFs/ETPs providing exposure to Mexico experienced net inflows of US$0.6 Bn while ETFs/ETPs providing exposure to Brazil saw net outflows of US$0.3 Bn. In 2010, ETFs/ETPs listed in Latin America had net outflows of US$1.9 Bn, of which ETFs/ETPs providing exposure to Mexico saw net outflows of US$3.3 Bn, while ETFs/ETPs providing exposure to Brazil saw net inflows of US$1.4 Bn. NSX Releases March 2011 ETF Data Reports First quarter 2011 net cash inflows reached over $28.9 billion, an increase of 240% over the same time period in 2010 when net cash flows reached $8.5 billion.
ETF/ETN notional trading volume during March 2011 totaled almost $1.8 trillion, representing almost 31% of all U.S. equity trading volume.
At the end of March 2011, the number of listed products totaled 1,173 compared to 971 listed products at the same time last year. Visit www.nsx.com for full report. Dow Jones Indexes, UBS Investment Bank Announce Daily Currency Hedged Versions Of Dow Jones-UBS Commodity Index - Versions To Reflect Hedging Of Foreign Exchange Risk On A Daily Basis
The new indexes are available in excess return versions, which reflect the return of underlying commodity futures price movements and movements in foreign exchange rates only. Total return versions are also available, reflecting additional assumed return on cash collateral held in the relevant non-USD currency.
Minutes Of The U.S. Federal Open Market Committee, March 15, 2011 Canadian, U.S. Clearing Firms Agree To Explore Swap Clearing Link The Canadian OTC derivatives market—approximately C$37 trillion in notional value—is principally transacted through Canada’s six largest banking institutions with a significant number of the counterparties based in the United States or other foreign jurisdictions. The proposed clearing link agreement would foster the development of an effective clearing solution designed to reduce systemic risk and provide Canadian swap market participants and their trading partners with an optimized solution for clearing. The agreement would also seek to maximize capital efficiencies while maintaining the highest global standards for risk management. NYPC CEO Walt Lukken added: “NYPC is thrilled to collaborate with CDCC as we explore a clearing link for Canada. This MOU is an important first step in our strategic pursuit to bring OTC swaps into the more capital-efficient structure of NYPC.” Canadian market participants, including the banks, significant buyside institutions, and the Canadian regulatory community have been actively consulting clearing solution providers as they develop the clearing requirements to meet Canadian G20 obligations. Morgan Stanley ETF Weekly Update ETF flows rebounded last week, generating net inflows of $5.8 billion
13-week flows were mostly positive among asset classes
US-Listed ETFs: Estimated Largest Flows by Individual ETF The NASDAQ-100 Index to Undergo a Special Rebalance "The Special Rebalance reflects our commitment to ensure the NASDAQ-100 Index remains a relevant benchmark for investors around the world who track the performance of the U.S. equity market," according to John Jacobs, Executive Vice President, NASDAQ OMX Global Index Group. "The NASDAQ-100 Index will remain an objective, transparent, rules-based index and will be comprised of the same large-cap growth companies that have a legacy of leadership and innovation." As a result of the Special Rebalance, the underlying characteristics of the NASDAQ-100 Index will remain intact and the sector weights will remain in the same relative order and magnitude. For more information about the Special Rebalance, including the results, visit https://indexes.nasdaqomx.com/docs/NDXSpecialRebalancePresentation.pdf. The Special Rebalance of the NASDAQ-100 Index will be enacted based on Index Securities and shares outstanding as of March 31, 2011.* The NASDAQ-100 Index is composed of the 100 largest non-financial stocks listed on The NASDAQ Stock Market® and dates to January 1985 when it was launched along with the NASDAQ Financial-100 Index®, which is comprised of the 100 largest financial stocks on NASDAQ®. These indexes act as benchmarks for financial products such as options, futures, and funds. The NASDAQ-100 Index is re-ranked each year in December, timed to coincide with the quadruple witch expiration Friday of the quarter. On a cumulative price return basis, the NASDAQ-100 Index has returned approximately 1771% since inception, although past performance is not indicative of future performance. The NASDAQ-100 Index is the basis of the PowerShares QQQ Trust (Nasdaq:QQQ) which aims to provide investment results that, before expenses, correspond with the NASDAQ-100 Index performance. In addition, options, futures and structured products based on the NASDAQ-100 Index and the PowerShares QQQ Trust trade on various exchanges. To learn more about the criteria for inclusion to the NASDAQ-100, visit NASDAQ-100 Index. Deutsche Bank Team Quits to Launch Hedge Fund SEC Announces Filing of Limit Up-Limit Down Proposal to Address Extraordinary Market Volatility
April 5, 2011--The Commodity Futures Trading Commission (CFTC) will hold a public meeting on Tuesday, April 12, 2011, at 9:30 a.m. to consider the issuance of proposed rulemakings under the Dodd-Frank Wall Street Reform and Consumer Protection Act on the following topics:
Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants
Amendments to 17 CFR Parts 1, 5, 7, 8, 15, 18, 21, 36, 41, 140, 145, 155, and 166 Resulting From the Dodd-Frank Act
April 5, 2011--SPDR has filed a post-effective amedment, registration statement with the SEC for the SPDR Barclays Capital Issuer Scored Corporate Bond ETF (CBND).
view filing
April 5, 2011--This report is a review of the Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) industry in Latin America, at the end of February 2011.
The first ETF to launch in Latin America was the NAFTRAC, designed nine years ago to track the Mexican IPC Index. Since its launch on 16 April 2002 in Mexico it has become the largest ETF in the region with US$6.0 Bn in Assets Under Management (AUM), at end February 2011.
iShares acquired the ETF from Nacional Financiera on 14 May 2009, and it has since been renamed iShares NAFTRAC.
April 5, 2011--Highlights from the March 2011 reports include:
Assets in U.S. listed Exchange-Traded Funds (ETF) and Exchange-Traded Notes (ETN) continue to reach record levels, totaling approximately $1.08 trillion at March 2011 month-end, an increase of approximately 31% over March 2010 month-end when assets totaled almost $820 billion.
ETF/ETN net cash inflows for the month of March totaled approximately $11.2 billion.
April 5, 2011--Dow Jones Indexes, a leading global index provider, and UBS Investment Bank today announced the daily currency hedged versions of the Dow Jones-UBS Commodity Index.
Designed as benchmarks for non-U.S. dollar investors, these versions are calculated to reflect the hedging of foreign exchange risk on a daily basis. The indexes aim to provide an easily replicable basis for the creation of financial products, such as exchange-traded funds, for which it is important to enter into or terminate hedging transactions at that day’s settlement value of the reference index.
April 5, 2011--The Minutes Of The U.S. Federal Open Market Committee, March 15, 2011 are now available.
view
April 5, 2011--)--Canadian Derivatives Clearing Corporation (CDCC) and New York Portfolio Clearing (NYPC) today announced the signing of a Memorandum of Understanding (MOU) to explore the development of a clearing link for the Canadian swap market to assist in meeting Canada’s G20 commitment of clearing over-the-counter (OTC) derivatives by December 31st, 2012. If successful in reaching a final agreement, the resulting structure could serve as an important cross-border template for other jurisdictions around the globe that are required to meet similar G20 obligations.
“Today’s announcement provides a valuable roadmap for building a clearing solution that best meets the needs of the Canadian OTC derivatives market,” stated Glenn Goucher, President and Chief Clearing Officer of CDCC. “NYPC will be a valuable partner as we seek to deliver a viable swaps central counterparty clearing solution for Canada.”
April 5, 2011-Weekly Flows: $5.8 Billion Net Inflows
ETFs Traded $280 Billion Last Week
Launches: 18 New ETFs
Global X Announces Share Split on Colombia ETF
US-Listed ETFs: Estimated Flows by Market Segment
Net inflows were primarily driven by US Sector & Industry and EM Equity ETFs
ETF assets stand at more than $1 trillion, up 7% YTD
$28.3 billion net inflows into ETFs over past 13 weeks (International-Developed took in $9.4 billion)
EM Equity ETFs posted meaningful net outflows ($5.9 billion) over the past 13 weeks, but have exhibited net
inflows for three straight weeks (combined $3.4 billion)
Despite last week’s net inflows, EEM has exhibited net outflows of $8.5 bln over the past 13 weeks, by far the
most of any ETF
SPDR S&P 500 ETF (SPY) was a drag on industry flows again last week, posting net outflows of $1.0 bln;
SPY has historically exhibited net outflows during the 1st quarter of the year and this year was no different
April 5, 2011--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) announced today the NASDAQ-100 Index® (Nasdaq:NDX), will undergo a Special Rebalance effective prior to market open on Monday, May 2, 2011. The Special Rebalance will not change the methodology used to calculate the NASDAQ-100 Index nor the Index Securities.
After substantial research and consideration, NASDAQ OMX decided to enact a Special Rebalance in order to bring the weights of the Index Securities closer in line with their actual market capitalizations.
April 5, 2011--A 17-year Deutsche Bank AG veteran who was instrumental in building its emerging-markets trading business has left the bank with a team of seven traders to launch a hedge fund.
Kay Haigh, who joined Deutsche in 1994, had been head of emerging markets debt trading and was head of global macro trading before he left the bank last week. Deutsche Bank confirmed Mr. Haigh's departure and declined to comment further. Mr. Haigh has incorporated a new company called Avantium Investment Management, according to public documents. He is preparing to launch a global macro emerging markets fund in the fourth quarter, once the venture has been given approval by the Financial Services Authority.
April 5, 2011--The Securities and Exchange Commission today announced that national securities exchanges and the Financial Industry Regulatory Authority (FINRA) today filed a proposal to establish a new “limit up-limit down” mechanism to address extraordinary market volatility in U.S. equity markets.
Under the proposal, trades in listed stocks would have to be executed within a range tied to recent prices for that security.
