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Standard & Poor's Announces Changes In The S&P/TSX Canadian Indices
January 28, 2011--Standard & Poor's Canadian Index Operations announces the following index changes: Brookfield Asset Management Inc. (TSX:BAM.A) has acquired 113.3 million shares of General Growth Properties Inc. from the Fairholme Fund. Brookfield Asset Management has issued 27.5 million shares to Fairholme as part of the payment in the transaction.
The relative weight of Brookfield Asset Management will increase in the S&P/TSX Composite and Capped Composite, the S&P/TSX Equity and Capped Equity, the S&P/TSX 60, 60 Capped and Equity 60, the S&P/TSX MegaCap, the S&P/TSX Capped Real Estate and the S&P/TSX Composite Dividend indices to reflect this issuance of Brookfield shares. There will be no change to the weight of Brookfield Asset Management in the S&P/TSX 60 Equal Weight or the S&P/TSX 60 130/30 Strategy Index. These changes will be effective after close on Friday, February 4, 2011.
Vanguard Launches Total International Stock ETF
January 28, 2011--Vanguard today introduced the Vanguard Total International Stock ETF (VXUS), which seeks to track the MSCI All Country World ex USA Investable Market Index. The Total International Stock ETF will have an estimated expense ratio of 0.20%, which is more than 60% lower than the average expense ratio of competing ETFs. (Source: Lipper, Inc., as of December 31, 2009.)
The new ETF is a separate share class of Vanguard Total International Stock Index Fund, which was introduced in 1996 and is currently Vanguard’s second-largest international index fund, with $51.4 billion in net assets.
“Vanguard Total International Stock ETF (VXUS) is a new way to invest in an established fund that offers broad international diversification with an extremely modest price tag,” said Vanguard’s Chief Investment Officer Gus Sauter. “It complements our Total Stock Market ETF and Total Bond Market ETF, and enables advisors and individual investors to assemble a simple, balanced, and well-diversified portfolio using low-cost ETFs.”
The Total International Stock ETF’s target index covers 98% of the world’s non-U.S. markets, including the European, Pacific, and emerging market regions, as well as Canada. The index includes more than 6,000 issues encompassing stocks of large-, mid-, and small-capitalization companies in 44 countries.
State Street Global Advisors Introduces Three New SPDR® Industry ETFs
January 27, 2011--State Street Global Advisors (SSgA), the asset management business of State Street Corporation (NYSE: STT), today announced that the SPDR S&P® Transportation ETF (Symbol: XTN), SPDR S&P Telecom ETF (Symbol: XTL), and SPDR S&P Healthcare Equipment ETF (Symbol: XHE) began trading on the NYSE Arca on January 27, 2011. The launch of these three exchange traded funds (ETFs) brings State Street’s family of SPDR ETFs in the US to 96 offerings, including 41 that provide precise exposure to a wide range of US, international, and global industries, sectors and real estate segments.
SSgA’s three new SPDR industry ETFs will seek to track the performance of a series of S&P Select Industry Indices, which are designed to measure the performance of narrow Global Industry Classification Standard (GICS®) sub-industries, the most detailed level of industry definition. Constituent stocks are members of the S&P Total Market Index, which includes all common equities listed on the NYSE and the NASDAQ US exchanges.
“Our family of exchange traded funds continues to expand to meet the needs of a growing number of investors and financial professionals who rely on SPDR ETFs to implement a variety of asset allocation strategies and enhance the diversification of their portfolios,” said James Ross, senior managing director and global head of SPDR Exchange Traded Funds at State Street Global Advisors. “With the addition of these three new SPDR ETFs, investors have the ability to access the closely-followed transportation, telecom and healthcare industries with unmatched precision.”
SSgA’s new ETFs include:
| ETF Name | Ticker | Index Description | Expense Ratio | ||||
| SPDR S&P Transportation ETF | XTN | The S&P Transportation Select Industry Index is an equal-weighted index that includes 32 transportation companies with market capitalizations of at least $400 million. | 0.35% | ||||
| SPDR S&P Telecom ETF | XTL | The S&P Telecom Select Industry Index is an equal-weighted index that includes 27 telecom companies with market capitalizations of at least $400 million. | 0.35% | ||||
| SPDR S&P Healthcare Equipment ETF | XHE | S&P Healthcare Equipment Select Industry Index is an equal-weighted index that includes 30 healthcare equipment companies with market capitalizations of at least $400 million. | 0.35% | ||||
State Street manages $255 billion* in SPDR ETF assets worldwide (as of
December 31, 2010) and is one of the largest ETF providers in the US and
globally.
FCIC Releases Report on the Causes of the Financial Crisis
This Crisis was Avoidable – a Result of Human Actions, Inactions
and Misjudgments; Warning Signs Were Ignored
January 27, 2011--Today the Financial Crisis Inquiry Commission delivered the results of its
investigation into the causes of the financial and economic crisis. The Commission concluded that the
crisis was avoidable and was caused by:
Widespread failures in financial regulation, including the Federal Reserve’s failure to stem the
tide of toxic mortgages;
Dramatic breakdowns in corporate governance including too many financial firms acting recklessly and taking on too much risk;
An explosive mix of excessive borrowing and risk by households and Wall Street that put the
financial system on a collision course with crisis
Key policy makers ill prepared for the crisis, lacking a full understanding of the financial system they oversaw;
And systemic breaches in accountability and ethics at all levels.
“Despite the expressed view of many on Wall Street and in Washington that the crisis could not have been foreseen or avoided, there were warning signs. The greatest tragedy would be to accept the refrain that no one could have seen this coming and thus nothing could have been done. If we accept this notion, it will happen again” said Phil Angelides, Chairman of the Commission.
The Commission’s report also offers conclusions about specific components of the financial system that contributed significantly to the financial meltdown. Here the Commission concluded that: collapsing mortgage-lending standards and the mortgage securitization pipeline lit and spread the flame of contagion and crisis, over-the-counter derivatives contributed significantly to this crisis, and the failures of credit rating agencies were essential cogs in the wheel of financial destruction.
view the report-THE FINANCIAL CRISIS INQUIRY REPORT
No stemming red ink: Federal deficit to hit $1.5T
January 27, 2011-- Far from slowing, the government's deficit spending will surge to a record $1.5 trillion flood of red ink this year, congressional budget experts estimated Wednesday, blaming the slow economic recovery and last month's tax-cut law.
The report was sobering new evidence that it will take more than President Barack Obama's proposed freeze on some agencies to stem the nation's extraordinary budget woes. Republicans say they want big budget cuts but so far are light on specifics.
Wednesday's Congressional Budget Office estimates indicate the government will have to borrow 40 cents for every dollar it spends this fiscal year, which ends Sept. 30. Tax revenues are projected to drop to their lowest levels since 1950, when measured against the size of the economy.
SEC Publishes Staff Study on Investor Access to Information About Investment Professionals
January 27, 2011--The Securities and Exchange Commission today announced that it has published a staff study recommending steps to help investors better access information about investment professionals.
The recommendations of the study, which was required by Section 919B of the Dodd-Frank Wall Street Reform and Consumer Protection Act, must be implemented within 18 months after the study's completion.
Investors must currently search two separate databases for information about broker-dealers and investment advisers. The primary recommendation of the study is to enable investors to simultaneously search both databases using either FINRA's BrokerCheck website or the Investment Adviser Public Disclosure (IAPD) website and receive unified search results.
Esposito to seed Pax World ETF
January 27, 2011--Esposito Securities has entered into an agreement to seed the Pax (NYSE Arca: EAPS) MSCI EAFE ESG Index ETF with a total of $2.5mm composed of two creation units totaling 100,000 shares and an initial price of $25.00 per share. This exchange traded fund (ETF) product will be listed under the ticker symbol EAPS on the NYSE Arca. Pax World Management LLC is acting as the adviser for the fund, which is planned to launch January 28, 2011.
"EAPS brings the number of ETFs seeded by Esposito Securities to five. We are fully committed to pursuing additional opportunities, and more aggressively creating ETF activity. Our relationship with Pax underscores that commitment," states Mark Esposito, CEO.
Part of ESG Shares®, the first family of ETFs devoted exclusively to a Sustainable Investing approach, Pax World's new ETF seeks to track the performance of the MSCI EAFE ESG Index, which is created and maintained by MSCI. The Index consists of equity securities of issuers in developed markets in Europe, Australasia and the Far East that meet specific environmental, social and governance (ESG) criteria developed by MSCI ESG Research. The Pax MSCI EAFE ESG Index ETF is the first international ETF based on a sustainability or ESG-based index.
Select Sector SPDR® Trust files with the SEC
January 27, 2011--Select Sector SPDR® Trust has filed a post effective amendment, registration statement with the SEC for
The Consumer Discretionary Select Sector SPDR® Fund (XLY)
The Consumer Staples Select Sector SPDR® Fund (XLP)
The Energy Select Sector SPDR® Fund (XLE)
The Financial Select Sector SPDR® Fund (XLF)
The Health Care Select Sector SPDR® Fund (XLV)
The Industrial Select Sector SPDR® Fund (XLI)
The Materials Select Sector SPDR® Fund (XLB)
The Technology Select Sector SPDR® Fund (XLK)
The Utilities Select Sector SPDR® Fund (XLU)
Funds Flowing to US from Emerging Markets - Blackstone
January 28, 2011--U.S. private equity company Blackstone (BX.N) said the robust U.S. funding environment should continue through to May and June and expects funds to flow into North America from emerging markets.
The funding environment in the U.S. both in the equity and debt markets is robust. It will certainly continue to May and June. And the market will pause and see," John Studzinski, senior Blackstone managing director, told Reuters Insider.
AdvisorShares Set to Launch the Active Bear ETF (NYSE: HDGE)
HDGE May Act as a Hedging Solution to Equity Exposure
January 26, 2011--AdvisorShares Investments, LLC, a sponsor of actively managed Exchange Traded Funds (ETFs), today announced that it will begin trading in the Active Bear ETF (NYSE: HDGE) tomorrow, January 27th. HDGE is sub-advised by portfolio managers John Del Vecchio and Brad Lamensdorf of Ranger Alternative Management, L.P. ("Ranger") a Dallas-based investment manager.
The HDGE Portfolio Management Team will implement a short-only large-cap domestic equity investment strategy by utilizing a bottom-up, fundamental, research driven security selection process. In selecting short positions, the Team seeks to identify securities with low earnings quality or aggressive accounting which may be intended on the part of company management to mask operational deterioration and bolster the reported earnings per share over a short time period. In addition, the portfolio management team seeks to identify earnings driven events that may act as a catalyst to the price decline of a security, such as downwards earnings revisions or reduced forward guidance. Lastly, the HDGE Team employs a variety of technical factors that drive short Beta exposure with the goal of generating alpha in any market environment.
Open Meeting on Twelfth Series of Proposed Rules under the Dodd-Frank Act
January 26, 2011--The Commodity Futures Trading Commission (CFTC) will hold a public meeting to consider the issuance of proposed rulemakings under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
When: Friday, February 11, 2011, 9:30 am (ET)
Where: CFTC’s Hearing Room, 1155 21st, NW, Washington DC
Topic: Twelfth Series of Proposed Rules under the Dodd-Frank Act
Central America: Leaders get Prepared for the Region's Economic Integration
January 26, 2011--Hoping to add momentum to Central America’s economic integration, a key group of private sector executives and government officials joined this week the first regional integration training program –an initiative co-sponsored by the World Bank, INCAE Business School and various other partners to promote convergence of trade and other sectors in the region.
The Economic Regional Integration Program (PIER, in Spanish), makes good on several initiatives announced by World Bank President Robert B. Zoellick at the July 2010 Central American Presidential Summit to support the region’s integration bid.
Federal Open Market Committee Statement
January 26, 2011--Information received since the Federal Open Market Committee met in December confirms that the economic recovery is continuing, though at a rate that has been insufficient to bring about a significant improvement in labor market conditions. Growth in household spending picked up late last year, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software is rising, while investment in nonresidential structures is still weak.
Employers remain reluctant to add to payrolls. The housing sector continues to be depressed. Although commodity prices have risen, longer-term inflation expectations have remained stable, and measures of underlying inflation have been trending downward.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. Currently, the unemployment rate is elevated, and measures of underlying inflation are somewhat low, relative to levels that the Committee judges to be consistent, over the longer run, with its dual mandate. Although the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability, progress toward its objectives has been disappointingly slow.
ProShares files with the SEC
January 26, 2011--ProShares has filed a post effective amendment, registration statement with the SEC for Ultra ProShares Ultra Fixed-Income
TPU-Ultra TIPS and
Short ProShares Short Fixed-Income
TPS UltraShort TIPS
Global X files with the SEC
January 26, 2011-- Global X has filed a post effective amendment, registration statement with the SEC for
Global X FTSE Andean 40 ETF-NYSE Arca, Inc: AND
Global X FTSE ASEAN 40 ETF-
NYSE Arca, Inc: ASEA.
Global X S&P/TSX Venture Canada ETF-NYSE Arca, Inc: TSXV
Global X Next 11 ETF-NYSE Arca, Inc: NXTE
