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Toronto Stock Exchange Celebrates 20 Years Of Listing And Trading Exchange Traded Funds - TSX First In The World To List An ETF In 1990
April 22, 2010--2010 marks the 20th anniversary of the creation of the world’s first Exchange Traded Fund (ETF) on Toronto Stock Exchange. To celebrate this milestone, as well as the exponential growth and success of ETFs in the Canadian and global marketplace, TMX Group CEO Tom Kloet and representatives of Canada’s ETF providers will open trading on Toronto Stock Exchange today.
“We are very proud to have led the world in the creation of this revolutionary investment product,” said Thomas Kloet, CEO, TMX Group. “That first listing 20 years ago laid the foundation for the sector’s remarkable growth and innovation – growth and innovation that we plan to foster and support for many years to come.”
The first exchange traded product – the Toronto 35 Index Participation units (TIPs) – was listed on Toronto Stock Exchange in March 1990. This investment product allowed investors to participate in the performance of the TSE 35 Composite Index without having to buy shares in each constituent company. This product was followed by HIPs, which was a participation unit for the Toronto 100 Index. In 2000, these products merged into the iUnits S&P/TSE 60 Index Participation Fund; and in 2006, the fund name was changed to the iShares CDN S&P/TSX 60 Index Fund, the name it uses today.
ETFs are important investment tools for investors, providing flexible and cost-effective product options. Today Toronto Stock Exchange lists a diverse range of funds from a variety of industry sectors and asset classes, including equities, fixed income, commodities and currencies. In 2009, there were 38 new ETFs listings, and there have been 25 new ETFs listed so far this year. As of April 15, 2010, there were 147 ETFs listed on Toronto Stock Exchange with a total market capitalization of $36 billion. In 2009, 16.8 billion ETF shares were traded, representing 14 per cent of all trading on Toronto Stock Exchange. Options on 27 ETFs also trade on Montreal Exchange, which is a wholly-owned subsidiary of TMX Group.
20 years after the launch of TIPs on TSX, the international ETF sector has expanded dramatically as well. As of March 2010, there were 2,131 ETFs listed worldwide, totalling 4,133 listings from 123 providers on 42 exchanges, with a total market capitalization of almost U.S. $1.1 trillion.
For more information on exchange traded funds, visit TMX Group’s ETF investor information portal on www.TMXmoney.com, its financial information website. The portal provides in-depth information on ETFs, including basic education, trading strategies and resources for investors.
Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Testimony Update
April 22, 2010--The Special Inspector General for the Troubled Asset Relief Program testified this morning before the House Committee on Appropriations Subcommittee on Financial Services and General Government.
His testimony can be found via our website at www.sigtarp.gov or via the following link: http://www.sigtarp.gov/reports/testimony/2010/Testimony%20Before%20the%20House%20Committee%20on%20Appropriations%20Subcommittee%20on%20Financial%20Services%20and%20General%20Government_4_22_2010.pdf
Treasury Harnesses the Power of Wind
reasury Department Headquarters to be Powered Entirely by Wind Beginning July 31, 2010
April 22, 2010--To mark the 40th anniversary of Earth Day, the U.S. Department of the Treasury today announced that beginning July 31, 2010 the main Treasury building and the Treasury Department annex will use wind power to supply 100 percent of their energy demand. This comes on the heels of Treasury's announcement earlier this week of an initiative to make a dramatic shift from paper to electronic transactions, a move that is expected to save more than $400 million and 12 million pounds of paper in the first five years alone. Together these two new initiatives will greatly reduce Treasury's carbon footprint and overall environmental impact.
"The Treasury Department is committed to operating in a manner that is more sustainable and reduces our impact on the environment," said Assistant Secretary for Management and Chief Financial Officer Dan Tangherlini. "Switching the way we power our buildings is just one of the ways Treasury is meeting that commitment and working to lead the federal government in sustainable operations."
Electricity generation is the leading cause of industrial air pollution in the U.S., with the majority of U.S. electricity coming from non-renewable sources such as fossil fuel-based power plants. As of July 31, 2010, the Treasury Department will be purchasing enough Renewable Energy Certificates (RECs) for wind power to supply 100 percent of the energy demand for the main Treasury and Treasury annex buildings. RECs finance renewable power generation, which is then placed into the electrical grid and results in reducing the need for fossil fuel-based electrical generation. RECs allow buyers to ensure that a specified amount of renewable power was generated to meet their demand. The cost of purchasing RECs is more than offset by costs from other energy and water savings measures Treasury is undertaking.
Wolin before the International Swaps and Derivatives Association 25th Annual Meeting
April 22, 2010--Thank you very much, Eraj, for that kind introduction. Good morning and thank you all for the opportunity to be here today.
Over a year ago, in the midst of the worst financial panic since the Great Depression, President Obama gathered with Congressional leaders of both parties to discuss the urgent need for financial reform.
He said at that meeting, "The choice we face is not between some oppressive government-run economy or a chaotic and unforgiving capitalism. Rather, strong financial markets require clear rules of the road, not to hinder financial institutions, but to protect consumers and investors, and ultimately to keep those financial institutions strong. Not to stifle, but to advance competition, growth and prosperity. And not just to manage crises, but to prevent crises from happening in the first place, by restoring accountability, transparency and trust in our financial markets."
A few months later, the Administration unveiled a sweeping set of reforms designed to do precisely what the President said: to lay the foundation for a safer, more stable financial system; one that fully protects the benefits of market-driven financial innovation while safeguarding against the dangers of instability and market-driven excess.
Rusal in Talks to Supply Aluminum to Banks for Funds
April 21, 2010-- United Co. Rusal, the world’s largest aluminum producer, said it’s in talks to supply metal to banks for possible exchange-traded funds that would be backed by the commodity.
“We’re interested in supporting new channels of demand for the metal,” Oleg Mukhamedshin, Rusal’s deputy chief executive officer and head of capital markets, said in an interview today.
Grail Advisors Issues White Paper on Exchange-Traded Bond Funds
April 21, 2010--Grail Advisors, a leader in the development and distribution of actively-managed Exchange Traded Funds (ETFs), today announced the firm has issued a white paper on Fixed Income ETFs and the state of the ETF marketplace.
The paper -- "Fixed Income ETFs -- Bonds Get to Work"-- provides a backdrop on the use of fixed-income ETF securities as well as an analysis of the funds' evolution. Most importantly, the paper looks forward to development possibilities for the ETF industry, including the expanding marketplace for actively-managed ETFs.
"Given the sheer numbers of folks coming to the retirement market in the next several years, it's reasonable to think the demand for income and sensible fixed-income investments will expand," said William M. Thomas, CEO of Grail Advisors LLC. "Investors need to be aware of the opportunities and investment vehicles across all asset classes as they seek the best strategies for their unique situations."
The paper notes that while bond ETFs haven't gained as much attention as equity ETFs, growth in the absolute numbers and assets of fixed-income ETFs has been impressive. At the end of the third quarter 2009, TrimTabs Investment Research reports that assets invested in the fixed-income piece of the ETF market stood at around $91 billion, a 59% increase from a year earlier.
The Grail Advisors paper outlines five specific uses for bond ETFs as part of a broad investment strategy:
•"Bondetizing" cash,
•Managing cash flows,
•Diversifying credit exposure,
•Filling gaps or taking active views on sectors, and
•Shorting or hedging index exposure.
"The paper outlines why so many managers, advisors, and investors are increasingly moving out of traditional mutual funds and in to ETFs," said Thomas. "We're not at all surprised to see the impressive growth of worldwide ETF assets."
To receive a copy of Fixed Income ETFs -- Bonds Get to Work," call Grail Advisors at (415) 677-5870, or email kdinsbach@grailadvisors.com.
In 2010, Grail Advisors launched two fixed-income products with McDonnell Investment Management, the Grail McDonnell Core Taxable Bond ETF (GMTB) and the Grail McDonnell Intermediate Municipal Bond ETF (GMMB). In 2009, the firm launched the market's first ETF to use traditional active management, the Grail American Beacon Large Cap Value ETF (GVT), and the industry's first actively-managed ETFs using a single-manager approach, RP Growth ETF (RPX), RP Focused Large Cap Growth ETF (RWG), RP Technology ETF (RPQ), and RP Financials ETF (RFF).
Schwab files with the SEC
April 21, 2010--Charles Schwab has filed a registration statement with the SEC for
Schwab Fixed-Income ETFs
Schwab U.S. TIPS ETF
Schwab Short-Term U.S. Treasury ETFtm
Schwab Intermediate-Term U.S. Treasury ETF
PAX World Files with SEC
April 21, 2010--Pax World has filed a Third Amended and Restated Application for exemptive relief for
ESG Shares FTSE Environmental Technologies (ET50) Index Fund.
view filing
Global X Funds Lists Silver and Copper Miners ETFs on NYSE Arca
April 20, 2010-- NYSE Euronext (NYX) announced that its wholly-owned subsidiary, NYSE Arca, today began trading the Global X Silver Miners ETF (Ticker: SIL) and Global X Copper Miners ETF (Ticker: COPX). The ETFs are sponsored by Global X Funds.
Global X Silver Miners ETF
The fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Silver Miners Index, which is a market capitalization-weighted index that is designed to measure broad based equity market performance of global companies involved in the silver mining industry, as defined by Structured Solutions AG.
Global X Copper Miners ETF
The fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Copper Miners Index, which is a market capitalization-weighted index that is designed to measure broad based equity market performance of global companies involved in the copper mining industry, as defined by Structured Solutions AG.
Dow Jones Indexes promotes Jamie Farmer to executive director
April 20, 2010--Dow Jones Indexes has expanded its executive team by promoting Jamie Farmer, former senior director global index operations and head of exchange relationships, to executive director.
This role was created to further harmonise Dow Jones Indexes' global business development and to ensure coordination of global business opportunities that result from the recent acquisition of 90 per cent of Dow Jones Indexes by the CME Group.
In addition to his existing operational and client activities, Farmer will assume responsibility for all global sales and business development activities at Dow Jones Indexes.
Wall Street Reform Bill Addresses Problems Raised By Lehman Failure
April 20, 2010--As the following chart demonstrates, H.R. 4173, the Wall Street Reform and Consumer Protection Act, addresses some of the most egregious problems raised by the Lehman Brothers’ failure, which precipitated the costly taxpayer bailout put forward by President Bush in 2008.
For a more complete analysis of how the Republican substitute makes taxpayer bailouts more likely, click here.
House Wall Street Reform Legislation Addresses Problems Raised by Lehman Failure
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Problem |
H.R. 4173 |
Republican “Substitute” |
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No mechanism to wind down and break up large, interconnected institutions in an orderly fashion |
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CFTC to Hold Public Meeting to Consider Significant Price Discovery Contract Determinations
April 20, 2010--The U.S. Commodity Futures Trading Commission will meet on Tuesday, April 27, 2010, to consider whether contracts offered for trading on the IntercontinentalExchange, Inc. (ICE), the Natural Gas Exchange, Inc. (NGX) or the Chicago Climate Exchange, Inc. (CCX) perform significant price discovery functions.
The 2008 Farm Bill requires the CFTC to regulate certain derivatives traded on exempt commercial markets (ECMs) if those derivatives perform a significant price discovery function.
Following issuance of an order determining that a contract traded on an ECM performs a significant price discovery function, the ECM must, with respect to that contract, come into compliance with core principles mandated by Section 2(h)(7) of the Act and with other statutory provisions applicable to registered entities. These provisions would subject the ECM’s contract or contracts and market participants to the Commission’s position limit and emergency authorities and large trader reporting requirements, among others.
Silver Miners ETF (SIL) and Copper Miners ETF (COPX)
April 20, 2010--Global X Funds, the New York-based provider of Exchange Traded Funds, launched today the Global X Silver Miners ETF (ticker: SIL) and Global X Copper Miners ETF (ticker: COPX). SIL and COPX have a 0.65% expense ratio.
The Global X Silver Miners ETF is the only ETF in the world targeting silver mining companies. It tracks the Solactive Global Silver Miners Index, comprised of the largest and most liquid silver mining companies in the world. The majority of holdings are Canadian based companies but also include companies based in the US, Mexico, Peru, and Russia. As of March 31, the largest index components were Fresnillo, Industrias Penoles, Silver Wheaton, and Pan American Silver.
Silver benefits from being an investment asset and from industrial and consumer applications. According to commodities analysts, silver demand should remain strong as a result of both investment interest and increased use in the consumer and industrial sectors. 54% of silver demand is industrial, and according BMO Capital Markets, silver industrial demand is expected to rise 19% this year.
Because SIL invests in silver mining companies, it provides a differentiated investment profile to investing in physical silver. For example, according to Nick Barisheff, President of Bullion Management Group Inc., "at the beginning of a bull market, it is well documented that mining shares typically rise, and often outperform bullion."
The Global X Copper Miners ETF tracks the Solactive Global Copper Miners Index, comprised of the largest and most liquid copper mining companies in the world. COPX components are based in Canada, Australia, UK, US, Mexico, China, Poland, Switzerland, and South Africa. As of March 31, 2010, the largest the largest index components were Freeport-McMoran, Xstrata, Grupo Mexico, and Southern Copper.
Much of the world’s infrastructure depends on copper, and governments are expected to spend approximately $30 trillion on infrastructure projects over the next 20 years, according to a 2009 study by CIBC World Markets. China, as the world’s largest consumer of copper, is projected to use 15.6 billion pounds of copper each year by 2015, according to Barclays Equity Research.
"SIL and COPX provide investors with efficient and targeted exposure to silver and copper mining companies, respectively. Both metals are essential for the global economy and may see growing demand as the economic recovery continues," said Bruno del Ama, CEO of Global X Funds.
Troubled Asset Relief Program has issued its Quarterly Report
April 20, 2010--The Special Inspector General for the Troubled Asset Relief Program has issued its Quarterly Report to Congress today April 20, 2010.
Exchange-Traded Funds-US ETF Weekly Update
April 19, 2010---Highlights
Weekly Flows: $2.9 billion net inflows
-Launches: 2 New ETFs
US-Listed ETFs: Estimated Flows by Market Segment
US ETFs had net cash inflows of $2.9 bln last week amid strong international flows
-Emerging Market Equity ($777 mln net inflows) vs. Developed Market Equity ($268 mln net inflows)
ƒÞ13-week net inflows strongest for fixed income and sector & industry
income; US Large-Cap restrained by SPY outflows of $4.6 bln.
