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BlackRock * New Report * ETF Landscape Canada Industry Review, End Q3 2010
November 5, 2010--This report is a review of the Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) industry in Canada through the end of Q3 2010. This report for the first time includes net flows for ETFs in Canada.
Twenty years ago on 9 March 1990, the first ETF was listed in Canada on the Toronto Stock Exchange (TSX): the TIPs (Toronto 35 Index Participation Fund) tracking the TSX 35 Index. It was followed by the HIPs (Hundred Index Participation Fund) tracking the TSX 100 Index on 26 September 1995.
Ten years later, on 7 March 2000, the TIPs and HIPs ETFs were merged into the iUnits S&P/TSE Index Participation Fund (XIU CN): an ETF that was originally listed on 4 October 1999 and has since been renamed iShares CDN S&P/TSX 60 Index Fund (XIU CN).
At the end of Q3 2010, there were 153 ETFs/ETPs listed in Canada with 199 listings, assets of US$35.3 Bn from six providers on one exchange. Since the end of 1999, assets in Canadian ETFs/ETPs have increased 8,634.7%, which represents a CAGR of 51.6%.
Assets in ETFs/ETPs listed in Canada have increased by 23.7% YTD to US$35.3 Bn, which is more than the 6.4% increase in the MSCI Canada Index in US dollar terms over the same period.
Year to date, ETFs/ETPs listed in Canada have seen net inflows of US$3.1 Bn, with US$1.8 Bn of net new assets going into fixed income ETFs/ETPs and US$1.4 Bn into equity ETFs/ETPs. In 2009, ETFs/ETPs listed in Canada had net inflows of US$7.1 Bn, of which US$3.2 Bn went into ETFs/ETPs tracking equity indices.
CFTC.gov Commitments of Traders Reports Update
November 5, 2010--The CFTC.gov Commitments of Traders Reports has been updated for the week of November 2, 2010 and are now available.
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U.S. Department of the Treasury Economic Statistics - Monthly Data Update
November 5, 2010--The U.S. Department of the Treasury Economic Statistics - Monthly Data has been updated and is now available.
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Treasury Announces Build America Bonds issuances Surpass $150 Billion
Recovery Act Bonds Program Provides Infrastructure Financing to State and Local Governments, Saving Billions Compared to Tax Exempt Bonds
November 5, 2010--The U.S. Department of the Treasury today released its comprehensive monthly update on Build America Bonds issuances, including state-by-state data, showing that more than $150 billion have been issued through October 31, 2010. Build America Bond issuers benefit from substantial savings in borrowing costs when compared to issuing tax-exempt debt.
"In the beginning, Build America Bonds helped fill a critical hole in the municipal finance market left by the financial crisis. Now, Build America Bonds have now become an important source of financing to help state and local governments undertake much-needed infrastructure projects," said Alan B. Krueger, Assistant Secretary for Economic Policy and Chief Economist at the Treasury Department. "That state and local governments have now issued more than $150 billion of Build America Bonds and saved billions of dollars in financing costs in the process is a testament to their success and further evidence that the program should be extended."
Market reception for Build America Bonds has been very positive. Between the program launch on April 3, 2009 and October 31, 2010:
There have been more than $150 billion in Build America Bond issuances; Build America Bonds now constitute about 21 percent of the municipal bonds market; and
There have been a total of 1,912 separate issues of Build America Bonds by local or state governments in all 50 states, the District of Columbia and two territories.
ETF Exec: ETFs Didn't Trigger Flash Crash
November 5, 2010--Six months after the "flash crash" jolted the stock market and investor nerves, the exchange-traded fund industry continues to grow. That's despite an uncomfortable fact: Seventy percent of the questionable trades that ended up being canceled involved ETFs.
Some 21,000 trades from May 6 were wiped away because they appeared to have been executed erroneously. There was no logic to them, just as it didn't make sense that the Dow Jones industrial average plunged nearly 1,000 points in less than a half-hour.
Yet it was ETFs, not stocks, that were hit the hardest from the sudden drop, federal regulators noted in a report on the crash.
Silver ETFs & Miners Surge Following QE2 -- Will the Bubble Burst?
The Bedford Report Provides Analyst Research on iShares Silver Trust & Silvercorp Metals
November 5, 2010-- On Wednesday the Federal Reserve announced that it plans to buy $600 billion in Treasury bonds to stimulate the economy, in a process known as quantitative easing, or in this case,"QE2."
The aim is to drive interest rates lower in an effort to spark spending and lending. One of biggest concerns with this round of quantitative easing is that it will make the already weak US dollar even weaker. Traditionally, when the greenback takes a nosedive, the markets look to industries based on goods that have price levels that move inversely to the US Dollar. One attractive opportunity for investors in this case is Silver. The Bedford Report examines the outlook for the Silver Market and provides research reports on iShares Silver Trust.
HSBC raises alert on emerging markets
November 5, 2010--HSBC on Friday forecast “bumps in the road” in emerging markets as it reported that underlying third-quarter pre-tax profit had been “well ahead” of the same period in 2009.
Michael Geoghegan, chief executive of Europe’s largest listed bank, said there was a risk that too many banks were seeking to lend in emerging markets, hitting pricing: “There are a lot of people going after the same business.”
DB Global Equity Index & ETF Research : US ETP Market Weekly Review: A quiet week for US ETPs
November 4, 2010--Cash Flow Review
Equity Markets took a break on the bullish trend started in early September ahead of US elections. The S&P 500, the MSCI EM index and the MSCI World index remained flat. While Gold (USD) price was up by 2.3% in an attempt to resume its ascent.
Total ETP inflows in the US added up to $1.9 bn during the previous week. Equity, Fixed Income, Commodity and Currency ETPs had inflows of $1.02 bn, $596 mm, $125 mm and $96 mm, respectively.
Within Equity ETPs, Emerging Markets Regional ETPs received the largest inflows ($638 mm) followed by US Sector ETPs, while Small Cap ETPs saw the largest outflows ($566 mm).
The Fixed Income ETPs inflows were led by Corporates ETPs ($245 mm), followed by Sovereign ETPs.
Commodity ETPs’ flows were lead by Silver ETPs receiving $428 mm inflows, on the other hand, Gold ETPs with $192 mm outflows recorded its second negative week.
New Launch Calendar
There were three new products added to the ETP rack over the previous week, all of which chose NYSE Arca as the listing venue.
The three products focus on niche market opportunities including rare earth/strategic metals related companies, silver bullion, and multi asset allocation active ETF of ETFs.
Turnover
Driven mainly by a decrease in Equity ETPs turnover, Avg. Daily Turnover decreased by 2.5% and totaled $63 bn at the end of the week.
Assets Under Management (AUM)
US ETPs AUM remained almost flat, but recorded a shy 0.5% increase, enough to reach a new record high of $930 bn at the end of the week.
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U.S. Department of the Treasury Economic Statistics - Monthly Data Update
November 4, 2010--The U.S. Department of the Treasury Economic Statistics - Monthly Data has been updated and is now available.
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Argentina To Have Its First Gold Futures Contract - On November 8, The New Gold Futures And Options Contract Will Begin Trading In ROFEX.
November 4, 2010--As from November 8, gold futures and options will be traded for the first time in Argentina. This new hedging tool, approved by the National Securities Commission, will be listed next week and will be part of ROFEX´s Financial Derivatives Division.
“The launching of the gold contract sprang from an initiative of Banco Ciudad, the main participant of the local gold market, which will also act as the product’s Market Maker, allowing traders to find a liquid market”, stated Luis Ossola, ROFEX´s president.
Taking as a reference the most important markets in the world, ROFEX will be the first local derivatives market to offer gold futures contracts, whose reduced size as compared to international contracts will offer the retail investor the possibility to participate. It will be quoted in US dollars per troy ounce (31.103 grams), in line with international trading.
Mutual funds losing favour
November 4, 2010--Actively-managed mutual funds in Canada and elsewhere are losing favour compared to Exchange-Traded Funds (ETFs) and Index Funds. Why is this? For the answer, look no further than the online quarterly update from Standard & Poor’s Indices Versus Active Funds Scorecard (SPIVA).
According to the latest SPIVA report, only 30.4 per cent of Canadian Equity Mutual Funds were able to outperform the TSX Composite Index in 2009. The report further concludes that these funds outperformed the index in only 12.5 per cent and 7.4 per cent of cases over the previous three- and five-year periods, respectively.
Global X Funds Launches First Gold Explorers ETF
November 4, 2010--Global X Funds, the New York based provider of exchange traded funds, launched today the Global X Gold Explorers ETF (Ticker: GLDX). This is the world's first ETF offering access to a unique segment of the gold mining life cycle: gold exploration companies.
"Gold exploration companies offer high risk-return characteristics with the potential to strike a gold mine, literally," CEO Bruno del Ama said.
Global X Gold Explorers ETF tracks the Solactive Global Gold Explorers Index, which is designed to track the performance of the largest and most liquid listed companies globally active in the exploration of gold.
"We believe an ETF is a fantastic structure to provide access to this segment of the gold mining industry," said Jose C. Gonzalez, Head of Operations. "This is the venture capital of gold, and GLDX offers the opportunity to capture the fantastic returns of one company striking gold while smoothing over the losses generated by failed projects."
Global X Funds will follow with a Global X Uranium ETF (Ticker: URA) launch tomorrow.
SEC Extends New Short Sale Rule Compliance Date
November 4, 2010--The Securities and Exchange Commission has extended the date for compliance with the Commission's new short sale rule to Feb. 28, 2011. The extension was granted to give certain exchanges additional time to modify their market opening, reopening, and closing procedures for individual securities covered by the rule, and in order to provide additional time to market participants for programming and testing of systems for implementation.
The Commission's new short sale rule will restrict the prices at which a stock can be sold short if the stock's price drops 10 percent or more in one day.
The Commission's extension of the compliance date from Nov. 10, 2010, to Feb. 28, 2011, is available on the SEC website (www.sec.gov).
PowerShares files with the SEC
November 4, 2010--PowerShares has filed a post effective amendment, registration statement with the SEC for
PowerShares S&P® Bank Loan Portfolio
Investment Objective
The Fund seeks investment results that correspond (before fees and expenses) generally to the price and yield of an index called the S&P/LSTA U.S. Leveraged Loan 100 Index.
Latin America: Climate for Doing Business Improving in Most of the Region
November 4, 2010- Twelve of 20 economies in Latin America reformed business regulation to expand opportunity for local firms in the past year, according to Doing Business 2011: Making a Difference for Entrepreneurs, the eighth in a series of annual reports published by IFC and the World Bank.
Peru improved business regulation the most in the region, moving up 10 places in the global ranking on the overall ease of doing business, to 36 (among 183 economies). Peru was also among the world's 10 most active economies, improving in four of nine areas covered by the report. It created an online one-stop shop for business registration, improving the ease of business start-up more than any other economy. Peru also streamlined permits for construction, introduced fast-track procedures at the land registry, and eased trade with a new Web-based electronic data interchange system.
Economies in Latin America are improving regulation with faster, transparent, electronic systems. For example, Nicaragua improved electronic payment of taxes and expedited trade by migrating to an electronic data interchange system for customs. "New technology underpins regulatory best practice around the world," said Sylvia Solf, lead author of the report. "Technology makes compliance easier, less costly, and more transparent."
Chile, the region's runner-up regulatory reformer, moved up from 53 to 43 in the global ranking on the ease of doing business by introducing an online system for business registration and strengthening investor protections. Brazil eased business start-up by enhancing electronic synchronization between federal and state tax authorities. Colombia made it simpler to obtain permits for construction by improving the electronic verification of prebuilding certificates.
view Doing Business 2011 Fact Sheet – Summary of Reforms in Latin America and the Caribbean
