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State Street Global Advisors-ETF Snapshot August 2010
September 17, 2010--As of August 31, 2010, 923 ETFs—with assets totaling approximately $800BN—were managed by 33 ETF managers.
ETF industry assets fell $21.8BN for the month, down 2.7%.
STATE STREET HIGHLIGHTS, AUGUST 2010
State Street Global Advisors (State Street) offers four international ETFs that provide access to international treasuries, international TIPS and international corporate bonds. In particular:
The SPDR® Barclays Capital International Corporate Bond ETF [IBND] was the first US-listed ETF to provide access to international corporate bonds.
IBND provides exposure to European, Asian, and other international corporate bonds. About 90% of IBND’s portfolio is denominated in Euros.1
ETF Industry Detail
ASSET CLASSES ? OVERALL
The S&P 500® Index fell 4.5% while the MSCI EAFE Index fell 3.0%. U.S. bonds rose with the Barclays U.S. Treasury Index, gaining 2.0% and the Barclays U.S. Aggregate Index, climbing 1.3%. Gold rose $77 to $1,246 per ounce.
Declines in the Size categories accounted for the majority of the total drop in ETF AUM.
The Fixed Income and Commodity categories rose $3.9BN and $3.4BN, respectively.
Year-to-date, areas with significant positive asset growth are Commodities: up $11.0BN, Fixed Income: up $31.1BN, and Dividend/Fundamental: up $4.4BN.
SIZE/STYLE
Large Cap assets fell $15.4BN, followed by Small Cap, down $3.6BN.
All Size and Style categories declined in assets.
SECTOR
Eight of ten Sectors fell for the month with Financials losing the most, down $1.2BN. Utilities and Materials were up slightly in absolute terms.
For more detail , please visit www.spdrs.com.
Claymore/BNY Mellon Frontier Markets ETF Tops $130 Million in Assets
September 17, 2010--Claymore Securities, Inc., an innovator of investment product solutions and wholly-owned subsidiary of Guggenheim Partners, LLC, and BNY Mellon, the global leader in asset management and securities servicing, today announced that the Claymore/BNY Mellon Frontier Markets ETF (the "Fund") has surpassed $130 million in total assets. The Fund launched in June 2008 and trades on the NYSE Arca under the symbol "FRN."
The Fund seeks investment results that correspond generally to the performance, before the Fund's fees and expenses, of an equity index called the BNY Mellon New Frontier DR Index (the "Index"). Currently, the Index contains 47 constituents from 15 countries, including Argentina, Chile, Colombia, Czech Republic, Egypt, Georgia, Kazakhstan, Lebanon, Nigeria, Oman, Pakistan, Peru, Poland, Qatar and Ukraine. Sectors currently represented in the Index include financials, utilities, energy, telecom, materials, industrials, consumer staples and consumer discretionary. As such, the Fund provides investors access to a broad range of countries in the very early stages of development--a market segment that may offer an attractive risk/return profile and a lower correlation to the developed and emerging markets. The expense cap for the Fund is 0.65%.(1)
"Unlike more developed or emerging economies, frontier markets offer risk-tolerant investors a source of untapped economic potential," said Steven A. Baffico, senior managing director and head of U.S. Retail for Claymore Securities, Inc. "Investors are recognizing the potential growth opportunities many of these markets currently offer, such as the early development of effective harvest and management of natural resources, advancing their sovereign balance sheets, trade surpluses, infrastructure expansion, rising per capita GDP and the corresponding growth of the consumer. FRN offers investors the benefit of accessing these investment themes."
SEC Proposes Measures to Enhance Short-Term Borrowing Disclosure to Investors
September 17, 2010--The Securities and Exchange Commission today voted unanimously to propose measures that would require public companies to disclose additional information to investors about their short-term borrowing arrangements.
The SEC's proposal would shed a greater light on a company's short-term borrowing practices, including what some refer to as balance sheet "window-dressing." The proposed rules are aimed to enable investors to better understand whether amounts of short-term borrowings reported at the end of reporting periods are consistent with amounts outstanding throughout the reporting periods.
"Under these proposed rules, investors would have better information about a company's financing activities during the course of a reporting period — not just a period-end snapshot," said SEC Chairman Mary L. Schapiro. "Investors would be better able to evaluate the company's ongoing liquidity and leverage risks."
Many financial institutions and other companies engage in short-term borrowing in order to fund operations. These financing arrangements can range from commercial paper, repurchase agreements, letters of credit, promissory notes and factoring. They generally mature in a year or less.
Proposed Disclosure Requirements
Standard & Poor's Announces Changes In The S&P/TSX Venture Composite Index
September 17, 2010--Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Friday, September 17, 2010:
Asia Bio-Chem Group Corp. (TSXVN:ABC) will be removed from the index.
The company will graduate to trade on TSX under the same ticker symbol.
Company additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the company.
Standard & Poor's Announces Changes In The S&P/TSX Canadian Indices
September 17, 2010--Standard & Poor's Canadian Index Operations announces the following index changes:
The shareholders of Red Back Mining Inc. (TSX:RBI) and Kinross Gold Corporation (TSX:K) have approved the Plan of Arrangement whereby the companies will merge. Shareholders of Red Back Mining will receive 1.778 common shares of Kinross Gold and 0.11 of a Kinross warrant for each common share held.
Red Back Mining will be removed from the S&P/TSX Composite and Capped Composite, the S&P/TSX Equity and Capped Equity, the S&P/TSX Completion and Equity Completion, the S&P/TSX Global Gold and Global Mining and the S&P/TSX Capped Materials Indices. The relative weight of Kinross Gold 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 Global Gold and Global Mining and the S&P/TSX Capped Materials indices. There will be no change to Kinross in the S&P/TSX 60 Equal Weight or the S&P/TSX 60 130/30 indices.
These changes will all be effective after the close of trading on Tuesday, September 21, 2010.
Company additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the company.
Standard & Poor's Announces Changes In The S&P/TSX Canadian Indices
September 16, 2010--The unitholders of Boralex Power Income Fund (TSX:BPT.UN) have accepted the takeover offer from Boralex Inc. (TSX:BLX).
Boralex Power Income Fund will be removed from the S&P/TSX Clean Technology Index effective after the close on Friday, September 24, 2010.
Company additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the company
Concerned by Changes to the Tax Rules on Income Trusts? BlackRock Canada has a Solution: The New iShares(R) Diversified Monthly Income Fund
September 16, 2010--BlackRock Asset Management Canada Limited (BlackRock Canada), an indirect, wholly-owned subsidiary of BlackRock, Inc., today announced that the iShares Exchange-Traded Funds (ETFs) business, the world's largest provider of ETFs, can now provide investors looking for a consistent monthly income stream, along with full liquidity and the potential for modest long-term capital growth with an appealing-and tax-friendlier-option: the iShares Diversified Monthly Income Fund, trading on the TSX under the symbol XTR.
Managed by BlackRock Canada, XTR offers all the benefits that investors have come to expect from iShares ETFs, including reasonable management fees, full intra-day tradability, and the power of the iShares ETFs' unique and trusted product engineering.
XTR replaces the former iShares S&P®/TSX® Income Trust Fund, which traded under the same symbol. The conversion, approved by a special meeting of unitholders on August 23, 2010, is designed to provide maximum investor benefit in advance of changes to the federal tax regulations governing income trusts that will come into effect in January 2011.
"The goal here is to ensure investors continue to receive a reliable monthly income stream while still enjoying the benefits they've come to associate with iShares ETFs," said Oliver McMahon, director of product management for iShares ETFs at BlackRock Canada. "The new XTR is an income product that has the ETF's inherent advantages, including diversification, transparency, low costs, tax efficiency and the ability to use value-adding trading strategies, such as limit and stop orders."
US. Treasury International Capital Data for Juy
September 16, 2010--The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for July 2010. The next release, which will report on data for August 2010, is scheduled for October 18, 2010.
Net foreign purchases of long-term securities were $61.2 billion.
Net foreign purchases of long-term U.S. securities were $73.8 billion. Of this, net purchases by private foreign investors were $69.0 billion, and net purchases by foreign official institutions were $4.8 billion.
U.S. residents purchased a net $12.6 billion of long-term foreign securities.
Net foreign acquisition of long-term securities, taking into account adjustments, is estimated to have been $44.0 billion.
Foreign holdings of dollar-denominated short-term U.S. securities, including Treasury bills, and other custody liabilities increased $40.1 billion. Foreign holdings of Treasury bills increased $26.6 billion.
Banks' own net dollar-denominated liabilities to foreign residents decreased $20.4 billion.
Monthly net TIC flows were $63.7 billion. Of this, net foreign private flows were $43.1 billion, and net foreign official flows were $20.6 billion.
Javelin to Shutter Islamic Fund
New ETF Manager Finding More Success in Contrarian Strategy
September 16, 2010--Javelin Investment Management has announced that its JETS Dow Jones Islamic Market International Index Fund (NYSEArca:JVS - News) will cease trading on October 19, 2010. Launched on July 1, 2009, the fund failed to attract the level of investor interest that had been anticipated.
"With over seven million Muslims in the United States, we believe that Shariah-based investing has a promising future," says Javelin president and founder Brint Frith, "but we found it difficult to reach target investors through the marketing channels typically used by ETFs."
Marketing efforts for Javelin's second offering, JETS Contrarian Opportunities Index Fund, have proved more successful since its launch in April of this year. Trading under the symbol JCO, the fund consists of stocks that have been identified by Dow Jones as having underperformed in recent years while maintaining relatively strong fundamentals.
"The contrarian fund is gaining traction," says Frith, "and we are now developing similar funds that provide strategic solutions to challenging market conditions."
An investment in the JETS Dow Jones Islamic Market International Index Fund or in JETS Contrarian Opportunities Index Fund is subject to investment risk, including the possible loss of principal amount invested. The risks associated with these funds include stock market risk, index risk, tracking error risk, replication management risk, small and mid cap company risk, market price risk and trading halt risk.
JETS Dow Jones Islamic Market International Index Fund invests in companies whose principal activities are outside the United States. This creates the risk that currency fluctuations will impact the company's results. Trading on foreign markets often carries the risk that regulatory "circuit breakers" will interrupt trading. Trading practices vary around the world, as do sovereign risk and the possibility of war or civil disturbance. These risks can be more serious in the emerging markets.
ETF Securities USA LLC Files with the SEC-18 Funds
September 16, 2010--ETF Securities USA LLC has filed a pre-effective amendment to Form S-1 with the SEC for
ETFS ex-U.S. Oil
ETFS Natural Gas
ETFS Copper
ETFS Wheat
ETFS Composite Agriculture
ETFS Composite Industrial Metals
ETFS Composite Energy
ETFS All Commodities
ETFS Short ex-U.S. Oil
ETFS Short Natural Gas
ETFS Short Copper
ETFS Short Wheat
ETFS Short Gold
ETFS Leveraged ex-U.S. Oil
ETFS Leveraged Natural Gas
ETFS Leveraged Copper
ETFS Leveraged Wheat
ETFS Leveraged Gold
iShares files with the SEC
September 16, 2010--iShares has filed a post-effective amendment, registration statement with the SEC for
iShares Barclays 0-5 Year TIPS Bond Fund.
view filing
China's Currency Policies and the U.S.-China Economic Relationship-Testimony of Treasury Secretary Timothy F. Geithner
Before the Senate Banking, Housing, and Urban Affairs and House Ways and Means Committees
September 16, 2010--Chairman Dodd, Ranking Member Shelby, Members of the Committee, thank you for the opportunity to testify on Treasury's semiannual Report to Congress on International Economic and Exchange Rate Policies, and in particular on China.
I want to focus today on the importance of the U.S.-China economic relationship and the challenges that we must overcome in order to secure the full benefit of this relationship for the American people.
We have very significant economic interests in our relationship with China. With over 1.3 billion people and an economy continuing to grow at or near double-digit rates, China is our fastest-growing major overseas market. China's record of bringing hundreds of millions out of poverty, building a rapidly growing middle class, and now its efforts to encourage growth led by domestic demand, ultimately mean more demand for American goods and services. Increasing opportunities for U.S. firms and workers through expanded trade and investment with China will be an important part of the success of the President's National Export Initiative and our efforts to support job growth more broadly.
U.S. exports to China have grown much faster than our exports to the rest of the world, and they have recovered much more quickly following the global crisis.
DB Global Equity Index & ETF Research : US ETP Market Weekly Review
September 15, 2010-New Listings and Delistings
There were nine products listed over the previous week in NYSE Arca. Vanguard entered the battle for S&P-linked assets by launching 9 ETFs tracking the S&P 500, 400 and 600 indices in their blended and pure-style forms.
These products which offer the lowest TERs in each of their respective segments will compete directly with well established SPDRs and iShares funds, such as the SPY and IVV. However Vanguard is not new to this business (they manage the oldest index fund on the S&P 500 Index), therefore it will be interesting to watch the trends in flows, liquidity and assets among these funds as competition increases.
Net Cashflows
Total ETP inflows in the US added up to $2.6 bn during the previous week. Equity, Fixed Income, Commodity and Currency ETPs had inflows of $2.1 bn, $308 mm, $156 mm and $7 mm, respectively. No asset class experienced outflows.
Within Equity ETPs, Large Cap ETPs received the largest inflows ($2.5 bn) followed by Emerging Markets Regional ETPs, while Small Cap ETPs saw the largest outflows ($1.3 bn).
The Fixed Income ETPs inflows were led by Corporates ETPs ($449 mm), while Sovereign ETPs experienced the largest outflows ($256 mm).
Commodity ETPs’ flows were relatively insignificant with Natural Gas ETPs leading the inflows with $85 mm.
Turnover
Driven mainly by a decrease in Equity ETPs turnover, Avg. Daily Turnover decreased by 2.4% and totaled $59 bn at the end of the week.
Assets Under Management (AUM)
US ETPs AUM remained almost flat, recording a shy 0.6% increase almost mirroring the market performance as measured by the S&P 500 index (0.46%), totaling $842 bn at the end of the week.
To request a copy of the report
Component Changes Made to Dow Jones Africa Titans 50 Index
September 15, 2010--Dow Jones Indexes, a leading global index provider, today announced component changes in the Dow Jones Africa Titans 50 Index.
Red Back Mining Inc. (Canada, Basic Resources, RBI.T) will be deleted from the Dow Jones Africa Titans 50 Index and replaced by Nevsun Resources Ltd. (Canada, Basic Resources, NSU.T).
Red Back Mining Inc. is being removed due to its acquisition by Kinross Gold Corp. (Canada, Basic Resources, K.T). The changes in the Dow Jones Africa Titans 50 Index will be effective as of the open of trading on Monday, September 20, 2010.
The Dow Jones Africa Titans 50 Index is a pan-African index that measures the performance of 50 companies that are headquartered in or generate the majority of their revenues in Africa. Further information on the Dow Jones Africa Titans 50 Index can be found at http://www.djindexes.com.
ETFS Securities files with the SEC
September 15, 2010--ETFS Securities has filed an Amedment NO. 1 to
Form S-1 with the SEC for
ETFS Asian Gold Trust.
view filing
