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BMO launches ETF-based portfolio funds for the advisor market
April 26, 2010--BMO Financial Group today added a new dimension to its nearly year-old exchange-traded-funds business by introducing mutual-fund portfolios that will invest in ETFs.
The six newly available funds of funds are branded under the BMO Guardian name and will be sold through advisor-distribution channels with a minimum initial investment of $1,000. Look for similar portfolios to be added before long to the no-load BMO Mutual Funds family.
Though the prospectus does not specify which ETFs will be held in the fund portfolios, they are likely to invest primarily if not exclusively in BMO ETFs. BMO Financial Group launched its first four Toronto Stock Exchange-listed funds in June 2009, and since then has expanded to 22 ETFs covering a broad range of core and specialty asset classes.
DB Index Research -- Weekly ETP Market Review -- US
April 20, 2010--Highlights
New Listings
There were 3 new listings in the last week. Propelled by the good performance of MLPs, Credit Suisse launched the third ETN tracking this segment, this new ETN comes to market with the same TER (0.85%) than its two predecessors, but tracks a different number of companies. The remaining two listings, introduced by IndexIQ LLC and First Trust Ad., offer exposure to South Korea, and to the BICK (Brazil, India, China and South Korea) region, respectively.
Net Cashflows
This week, $3.13 bn flowed into ETPs. Equity and Fixed Income ETPs had inflows of $2.5 bn and $0.42 bn, respectively. While Commodity and Currency ETPs had outflows of $15 mm, and $55 mm, respectively.
In the equity asset class, US Sector ETPs had the highest inflows of $0.76 bn followed by Emerging Country ETPs, while Mid Cap ETPs experienced the largest outflows of $0.1 bn, followed by Commodity themed ETPs .
Corporate and Sovereign contributed the most to the positive cash flows into Fixed Income ETPs.
Within Commodity ETPs, those tracking broad commodity benchmarks saw the largest inflows followed by those tracking Natural Gas. Meanwhile, Gold and Silver ETPs experienced the largest outflows.
Turnover
ETP turnover increased by 3.9% over the previous week and totaled $63 bn.
Turnover in Large Cap and US Sector ETPs experienced the largest increase within Equity ETPs. For Fixed Income ETPs, turnover in the Sovereign space increased the most.Commodity ETP turnover increase the most in Gold and Silver ETPs .
Assets Under Management (AUM)
US ETPs AUM remained flat week over week totaling $842 bn at the end of last week. Equity ETPs had the lion’s share with $632 bn and 75% of market share, followed by Fixed Income funds with $125 bn and 15% of market share.
To request a copy of the report
Emerging Markets Week in Review 4/12/2010 - 4/16/2010
April 20, 2010--The Dow Jones Emerging Markets Composite Index declined 1.79% last week after the news of SEC charges against Goldman Sachs
put heavy pressure on Financial stocks. Health Care, the only positive sector for the week, was up 3.03% while Financials and Industrials were the worst performers, down 3.25% and 2.76%.
Despite the negative news Friday, all sectors remain positive for the
year with Health Care and Technology leading the way.
SEC Staffers Watched Porn as Economy Crashed
April 23, 2010-On April 22, 2010 the Associated Press reported the following.
SEC Inspector General David Kotz says in a memo obtained by The Associated Press that the behavior violates agency and government-wide ethics rules.
Senior staffers at the Securities and Exchange Commission spent hours surfing pornographic websites on government-issued computers while they were being paid to police the financial system, an agency watchdog says.
The SEC's inspector general conducted 33 probes of employees looking at explicit images in the past five years, according to a memo obtained by The Associated Press.
The memo says 31 of those probes occurred in the 2 1/2 years since the financial system teetered and nearly crashed.
The staffers' behavior violated government-wide ethics rules, it says.
It was written by SEC Inspector General David Kotz in response to a request from Sen. Charles Grassley, R-Iowa.
The memo was first reported Thursday evening by ABC News. It summarizes past inspector general probes and reports some shocking findings:
-- A senior attorney at the SEC's Washington headquarters spent up to eight hours a day looking at and downloading pornography. When he ran out of hard drive space, he burned the files to CDs or DVDs, which he kept in boxes around his office. He agreed to resign, an earlier watchdog report said.
-- An accountant was blocked more than 16,000 times in a month from visiting websites classified as "Sex" or "Pornography." Yet he still managed to amass a collection of "very graphic" material on his hard drive by using Google images to bypass the SEC's internal filter, according to an earlier report from the inspector general. The accountant refused to testify in his defense, and received a 14-day suspension.
ETF Landscape US Handbook Q1 2010-Blackrock
April 23, 2010--Highlights
At the beginning of March 2010 the global ETF industry had 2,091 ETFs with 3,998 listings, assets of US$1,001.9 Bn, from 115 providers on 40 exchanges around the world.
Additionally, there were 630 Exchange Traded Products (ETPs), with 921 listings and assets of US$150.03 Bn from 40 providers on 18 exchanges. Combined, there were 2,721 products with 4,919 listings, assets of US$1,152.2 Bn from 139 providers on 43 exchanges around the world.
The growth in ETF listings can be explained, in large part, by strong investor demand for these types of products. The proliferation of new offerings has also made it more challenging in terms of decision-making.
Claymore files with the SEC
April 23, 2010--Claymore has filed a Forth Amended and Restated Application for exemptive to permit Claymore Exchange-Traded Fund Trust 3 (the "Trust")
to create and
operate one actively managed investment portfolio of the Trust (the "Initial
Fund") that offers exchange-traded shares ("Shares") that are redeemable in
large aggregations only.
AdvisorShares files with the SEC
April 23, 2010--AdvisorShares has filed a registration statement with the SEC for
WCM / BNY Mellon Focused Growth ADR ETF
NYSE Ticker: AADR
INVESTMENT GOAL
Long-term capital appreciation above international benchmarks such as the BNY Mellon Classic ADR Index, the Fund’s primary benchmark, and the MSCI EAFE Index, the Fund’s secondary benchmark.
Total Annual Fund Operating Expenses After Reimbursements- 1.25%
EGA Emerging Global Shares files with the SEC
April 23, 2010--EGA Emerging Global Shares has filed a registration statement with the SEC for
Emerging Global Shares Dow Jones Emerging Markets Consumer Titans Index Fund
Cusip: 268461779
NYSE Ticker ECON
Investment Objective
The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Consumer Titans 30 .
Total Annual Fund Operating Expenses after Fee Waiver and/or Expense Reimbursement:0.85%
U.S. International Reserve Position
April 23, 2010--The Treasury Department today released U.S. reserve assets data for the latest week. As indicated in this table, U.S. reserve assets totaled $128,135 million as of the end of that week, compared to $127,793 million as of the end of the prior week.
I. Official reserve assets and other foreign currency assets (approximate market value, in US millions)
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April 16, 2010 |
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A. Official reserve assets (in US millions unless otherwise specified) 1 |
Euro |
Yen |
Total |
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(1) Foreign currency reserves (in convertible foreign currencies) |
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128,135 |
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(a) Securities |
9,574 |
14,114 |
23,688 |
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of which: issuer headquartered in reporting country but located abroad |
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0 |
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(b) total currency and deposits with: |
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(i) other national central banks, BIS and IMF |
14,050 |
6,919 |
20,969 |
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ii) banks headquartered in the reporting country |
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0 |
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of which: located abroad |
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0 |
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(iii) banks headquartered outside the reporting country |
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0 |
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of which: located in the reporting country |
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0 |
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(2) IMF reserve position 2 |
11,586 |
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(3) SDRs 2 |
55,936 |
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(4) gold (including gold deposits and, if appropriate, gold swapped) 3 |
11,041 |
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--volume in millions of fine troy ounces |
261.499 |
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(5) other reserve assets (specify) |
4,916 |
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--financial derivatives |
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--loans to nonbank nonresidents |
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--other (foreign currency assets invested through reverse repurchase agreements) |
4,916 |
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B. Other foreign currency assets (specify) |
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--securities not included in official reserve assets |
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--deposits not included in official reserve assets |
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--loans not included in official reserve assets |
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--financial derivatives not included in official reserve assets |
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--gold not included in official reserve assets |
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--other |
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Rydex to close 12 Leveraged/Inverse ETFs
April 23, 2010-- On April 20, 2010, the Board of Trustees for the Rydex Funds approved the closing and liquidation of 12 of the firm's 14 leveraged and inverse exchange traded funds. The affected funds account for approximately $129 million in assets, or less than 2% of Rydex|SGI's total $7 billion in exchange traded assets under management.* Friday, May 21, 2010 will be the last day of trading on the NYSE Arca for shares of the following funds.
The affected funds account for approximately $129 million in assets, or less than 2% of Rydex|SGI's total $7 billion in exchange traded assets under management.* Friday, May 21, 2010 will be the last day of trading on the NYSE Arca for shares of the following funds.
The funds that are closing are:
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Rydex 2X Russell 2000 |
RRY |
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Rydex Inverse 2X Russell 2000 |
RMM |
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Rydex 2X S&P MidCap 400 |
RRZ |
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Rydex Inverse 2X S&P MidCap 400 |
RMS |
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Rydex 2X S&P Select Sector Energy |
REA |
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Rydex Inverse 2X S&P Select Sector Energy |
RFL |
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Rydex 2X S&P Select Sector Financial |
RHM |
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Rydex Inverse 2X S&P Select Sector Financial |
RTG |
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Rydex 2X S&P Select Sector Health Care |
REC |
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Rydex Inverse 2X S&P Select Sector Health Care |
RFN |
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Rydex 2X S&P Select Sector Technology |
RHO |
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Rydex Inverse 2X S&P Select Sector Technology |
RTW |
"As an early entrant and an innovator in the exchange traded product space, Rydex|SGI is committed to offering innovative investment strategies that meet the diverse and evolving needs of investors," says Richard Goldman, CEO of Rydex|SGI. "With our exchange traded assets at an all-time high since we first entered the ETF scene in 2003, we are excited to intensify focus on this important business and concentrate resources on those products that have garnered the most investor interest. This consolidation will enable us to position our exchange traded product family for future growth opportunities, including new product development."
May 21, 2010 will be the last day of trading on the NYSE Arca for shares of the affected funds. Shareholders may sell their shares in the standard manner through this date, although Rydex|SGI cannot guarantee the existence of a competitive market. Customary brokerage charges may apply to such transactions. The affected funds will be closed to new investors as of the close of trading on May 21, 2010. Between the close of trading on May 21, 2010 and May 28, 2010, the affected funds will be in the process of liquidating their portfolio assets. During this period, shareholders will not be able to redeem their shares from the funds and will be unable to sell them in the secondary market. As a result of the planned liquidation, the funds are likely to increase their cash holdings and deviate from their respective investment objectives and strategies stated in the prospectus.
Shareholders remaining in the affected funds on May 28, 2010 will have their fund shares redeemed automatically on this date and will receive a cash distribution in the amount equal to the net asset value of their fund shares as of the close of trading on May 28, 2010. This amount includes any accrued capital gains and dividends. Shareholders remaining in the funds on May 28, 2010 will not be charged any transaction fees by the funds. The net asset value of each affected fund on May 28, 2010 will reflect the costs of closing that fund.
At $7 billion, Rydex|SGI's ETP assets account for approximately 29% of the firm's total assets under management.*
*Assets as of 4/22/2010.
ProShares and KBW launch regional banking ETFs
April 23, 2010-- ProShares, the leading manager of leveraged and inverse ETFs and KBW the largest full-service investment bank specializing in the financial services sector, announced today the launch of the first ETFs providing leveraged or inverse exposure to the regional banking sector.
The ETFs seek to provide 200% or -100% of the return of the KBW Regional Banking Index(SM) for a single day, before fees and expenses. The KBW Regional Banking Index, the most widely used benchmark for U.S. regional banking stocks,(2) was created and is managed by KBW.
The new ProShares ETFs, Ultra KBW Regional Banking (KRU) and Short KBW Regional Banking (KRS), will list on NYSE Arca today.
"We're pleased to provide investors with ProShares ETFs on the regional banking sector," said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares' investment advisor. "Many investors follow regional banking stocks, and these ETFs provide them with additional tools to act on their views."
"We are excited about teaming with ProShares to bring investors these valuable new tools for managing exposure to regional banks," added John N. Howard, Co-Director of Research at KBW.
ProShares Ticker Index Objective* Exchange
Symbol
New Regional Banking Sector ProShares
Ultra KBW Regional KRU KBW Regional Banking Index +200% Daily NYSE Arca
Banking
Short KBW Regional KRS KBW Regional Banking Index -100% Daily NYSE Arca
Banking
*Before fees and expenses
Now Available: PowerShares S&P SmallCap Sector Portfolios
April 23, 2010--The PowerShares S&P SmallCap Sector Portfolios are the first suite of exchange-traded funds (ETFs) offering sector-specific beta exposure within the small-cap space.
Ticker:XLYS-
PowerShares S&P SmallCap Consumer Discretionary Portfolio
Ticker:XLPS-PowerShares S&P SmallCap Consumer Staples Portfolio
Ticker:XLES-PowerShares S&P SmallCap Energy Portfolio
Ticker:XLFS-PowerShares S&P SmallCap Financials Portfolio
Ticker: XLVS-PowerShares S&P SmallCap Health Care Portfolio
Ticker:XLIS-PowerShares S&P SmallCap Industrials Portfolio
Ticker:XLKS-PowerShares S&P SmallCap Information Technology Portfolio
Ticker:XLBS-PowerShares S&P SmallCap Materials Portfolio
Ticker: XLUS-PowerShares S&P SmallCap Utilities Portfolio
Russell hires director for ETF licensing business
Ken O'Keeffe joins Russell Indexes to increase service to ETF providers
April 22, 2010-- Russell Investments has hired Ken O'Keeffe as an additional dedicated resource to support the firm's growing index-licensing business for exchange traded funds (ETFs). O'Keeffe formerly worked for MSCI Barra, where he most recently served as global head of client service. He is based in Russell's office in New York City.
In addition, Jamie Forbes has been promoted to serve as regional director for ETFs for the Europe, Middle East and Africa region. Based in London, she oversees a dedicated program focused especially on European markets, where Russell's ETF licensing business already features five listed products.
In his role as regional director for exchange traded funds based on Russell Indexes, O'Keeffe oversees licensing and future development of new and additional products for ETF providers in the Americas who aim to leverage Russell's objective methodology and comprehensive index design.
Kanjorski Bill Preserving Affordable Mortgages In America's Heartland Passes In Committee
April 22, 2010-- Today, the House Financial Services Committee unanimously passed H.R. 5017, the Rural Housing Preservation and Stabilization Act of 2010, introduced by Congressman Paul E. Kanjorski (D-PA), Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises. This action clears the bill for consideration by the U.S. House of Representatives, which is expected to take up the bill as early as next week.
The bill ensures the continued access of rural homebuyers to affordable mortgages through the U.S. Department of Agriculture’s (USDA) loan guarantee program. The financial crisis has spiked consumer interest in the program, tripling the number of loans annually made since 2006. Because demand continues to grow, the program will exhaust its federal funding within days. H.R. 5017 would, at no cost to the taxpayers, solve this problem by making the program self funded, enabling families living in rural communities to continue to access these much needed loan guarantees.
“Since its creation in 1987, USDA’s affordable rural home loan guarantee program has helped hundreds of thousands of families to realize the American dream of homeownership, including many in Northeastern Pennsylvania,” said Chairman Kanjorski. “As a result of the unprecedented demand, the program is now unfortunately running out of money. At no cost to taxpayers, my bill will preserve the access of millions of families living in America’s heartland to needed USDA loan guarantees, so that they can continue to buy homes with affordable mortgages. Without action, too many families in rural America will have no options for getting home loans. We cannot allow that to happen.”.
Written Testimony of Dan M. Berkovitz, General Counsel U.S. Commodity Futures Trading Commission Hearing to Review Proposals to Establish Exchanges Trading "Movie Futures"
Before the Subcommittee on General Farm Commodities and Risk Management House Committee on Agriculture
April 22, 2010--Chairman Boswell, Ranking Member Moran, and members of the Subcommittee, thank you for inviting the Commodity Futures Trading Commission ("CFTC" or "Commission") to testify at this hearing to review proposals to establish exchanges trading "movie futures."
The Commission appreciates this opportunity to present to the Subcommittee information about the standards and procedures used by the Commission, pursuant to the Commodity Exchange Act ("CEA"), to review applications for new exchanges seeking to trade futures contracts.
This testimony will address the standards and procedures that approved exchanges-called "designated contract markets" ("DCMs") - must follow in order to trade new futures contracts. In addition, this testimony will describe the Commission's activities with respect to the two applications recently approved for DCMs that intend to trade futures contracts whose settlement prices are based on the level of box office receipts from movie theaters ("movie futures" or "box office receipt futures"), as well as the status of the Commission's reviews of those proposed contracts.
