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Van Eck Global Debuts First Egypt ETF
February 17, 2010--Van Eck Global launches Thursday the first ETF to track Egypt, the largest country in the Middle East: Market Vectors Egypt Index ETF (EGPT).
With 77.4 million people, the country bordering the Mediterranean and Red Seas is the largest in the Middle East and third-largest in Africa.
Best known for its ancient civilization and its Giza pyramids, Egypt's economy depends primarily on tourism, agriculture, media and oil. Its gross domestic product grew 4.7% in 2009 and is expected to grow 4.5% in 2010, according to the International Monetary Fund.
U.S. International Reserve Position
February 17, 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 $129,578 million as of the end of that week, compared to $130,296 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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February 5, 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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129,578 |
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(a) Securities |
9,594 |
14,555 |
24,148 |
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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 |
14,168 |
7,125 |
21,293 |
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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 |
11,293 |
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(3) SDRs 2 |
56,846 |
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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) |
4,957 |
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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) |
4,957 |
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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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Emerging Global Shares Launches The First China Infrastructure Exchange Traded Fund
February 17, 2010--Emerging Global Shares (EG Shares), the first dedicated emerging markets sector ETF provider, today launched the China Infrastructure Index Exchange-Traded Fund (NYSE: CHXX), the first ETF focused solely on the infrastructure sector in China. .
The Fund invests in 30 of the largest publicly traded companies dedicated to the infrastructure industry in that country, and is designed to track the performance of the Indxx China Infrastructure Index
“China has made enormous progress in their infrastructure development, but the country still has literally decades of infrastructure build-outs and ongoing maintenance ahead of them to keep pace with their economic and population expansion,” said Robert Holderith, President and CEO of EG Shares. “That, combined with research which shows that emerging markets should provide about 80 percent of the entire world’s growth over the next 10 years, makes the China Infrastructure ETF launch timely.”
According to Richard Kang, CIO and Director of Research at Emerging Global Advisors, investing in emerging markets and infrastructure go hand in hand. “It’s important to understand that what we take for granted in the developed world is currently in high demand in emerging economies. Many of the most basic essential services that are vital to developed markets are still in the early stages in emerging markets, all of which contributes to a growing global infrastructure market that is roughly $20 trillion worldwide.”
The Emerging Global Shares China Infrastructure Index Fund is the fifth ETF to be introduced
by Emerging Global Shares. Other funds include the Emerging Global Shares Emerging
Markets Metals & Mining Fund (EMT), Emerging Global Shares Emerging Markets Energy Fund
(EEO), Emerging Global Shares Emerging Markets Financials Fund (EFN) and the Emerging
Global Shares Emerging Markets Titans Composite Index Fund (EEG).
BATS Options Unveils Simple, Aggressive Pricing For February 26th Launch
February 16, 2010 – BATS Exchange announces simple and aggressive pricing for the BATS Options exchange, which will launch February 26th with a rebate of $0.20 per contract for
members that add liquidity while charging $0.30 per contract for removing liquidity.
The release of pricing for the recently approved US equity options exchange coincides with the launch of
a new BATS Options Web site, available at www.batsoptions.com.
“BATS led the way in the US equities marketplace with innovative and aggressive pricing and BATS Options will continue this tradition with competitive and straightforward access fees that are the same for all members regardless of their capacity,” said Joe Ratterman, CEO of BATS Global Markets and BATS Exchange.
Rich Americans buy ETFs without advisor help:Cogent
February 16, 2010--Affluent Americans, or households with at least $100,000 of investable, non-real estate, assets, consider exchange-traded funds, or ETFs, as the new growth sector and are comfortable purchasing them without the help of an advisor, according to a study released on Tuesday.
Cogent Research found that nearly two-thirds of the 4,000 affluent investors it surveyed had purchased ETFs with no help from an advisor, demonstrating the continued acceptance and growth of ETFs. ETFs globally breached the $1 trillion level for the first time in 2009. In the United States, assets in ETFs rose 46 percent during the year to $777 billion.
"Given the high engagement level of self-directed investors with ETFs, it's no wonder that providers are now focused on addressing the needs of this important audience," Christy White, Cogent Research co-founder, said in a release. White points out that one compelling reason for rethinking traditional distribution models is the fact that 40 percent of current self-directed ETF owners say they plan to increase their use of these products, compared to just 26 percent of advised ETF owners who expect to do the same.
Van Eck files with the SEC
February 16, 2010-Van Eck has filed a registration statement with the sec for
Kuwait Index ETF (NYSE Arca, Inc.: KUWT)
view filing
Van Eck files with the SEC
February 16, 2010--Van Eck has filed a registration statement with the SEC for
Egypt Index ETF
view filing
Morgan Stanley: Exchange-Traded Funds: Average Tracking Error Rose Meaningfully in 2009
February 16, 2010--Tracking error rose across all market segments and
providers for US-listed ETFs in 2009 and averaged 125 bps. We define tracking error as the difference in
total return between an ETF’s net asset value (NAV) and its underlying index. In our view, the most common
sources of tracking error include fees and expenses, portfolio optimization, and index changes. However,
compliance with SEC diversification requirements can lead to extreme tracking error for select ETFs as they
may be forced into material weighting and holding deviations from their stated benchmarks.
The combination of portfolio optimization and the outperformance of smaller constituents within indices were the primary drivers of increased
tracking error for many ETFs. Despite market volatility, ETFs that fully replicate their benchmarks were
still able to track their underlying indices quite closely.
We found a broader range and magnitude of tracking error in 2009 versus 2008. In 2009, the range of tracking increased significantly and the percentage of ETFs with tracking error greater than 100 bps increased from 13.5% in 2008 to 37.5% in 2009. In addition, the percentage of ETFs with tracking error of less than or equal to 25 bps fell from 44.6% to 22%. In some ETF categories, weighted average tracking error was slightly lower than fund expenses. In 2009, the overall US major market and US style categories had weighted average tracking error that averaged 18 and 14 bps less than their respective expense ratios, while ETFs based on US dividend and currency indices averaged 23 bps and 45 bps less than their respective expense ratios.
Guggenheim adds to collection, snaps up Securities Benefit in latest acquisition
February 16, 2010--Guggenheim Partners LLC, an investment firm founded by the famous family for which it is named, announced today it is acquiring Security Benefit Corp. — and with it Rydex SGI.
It's Guggenheim's second acquisition of an exchange-traded fund provider in less than a year, after the Claymore Group was bought last summer.
The fact that Rydex SGI offers ETFs, however, was not the primary consideration behind the acquisition of its parent company, said Todd Boehly, managing partner in the office of the chief executive of Guggenheim Partners.
Claymore Gold Bullion Trust converts to ETF
February 16, 2010--Claymore Gold Bullion Trust has met the requirements of its ETF conversion feature and is trading as an exchange-traded fund, Claymore Investments Inc. says.
The name of the fund has been changed to the Claymore Gold Bullion ETF. The hedged common units of the fund now trade on the Toronto Stock Exchange (under the ticker CGL.
The fund has also qualified for issuance a new class of non-hedged common units to be launched at a future date, Claymore says.
Treasury International Capital Data for December 2009
February 16, 2010--The Department of the Treasury today released Treasury International Capital (TIC) data for December 2009. The next release, which will report on data for January 2010, is scheduled for March 15, 2010.
Net foreign purchases of long-term securities were $63.3 billion.
Net foreign purchases of long-term U.S. securities were $82.2 billion. Of this, net purchases by private foreign investors were $62.6 billion, and net purchases by foreign official institutions were $19.6 billion.
U.S. residents purchased a net $18.9 billion of long-term foreign securities.
Net foreign acquisition of long-term securities, taking into account adjustments, is estimated to have been $50.9 billion.
Foreign holdings of dollar-denominated short-term U.S. securities, including Treasury bills, and other custody liabilities decreased $67.7 billion. Foreign holdings of Treasury bills decreased $53.0 billion.
Banks' own net dollar-denominated liabilities to foreign residents increased $77.7 billion.
Monthly net TIC flows were $60.9 billion. Of this, net foreign private flows were $82.0 billion, and net foreign official flows were negative $21.1 billion.
U.S. Department of the Treasury Economic Statistics - Quarterly Data Update
February 16, 2010--The U.S. Department of the Treasury Economic Statistics - Quarterly Data Update is now available.
Emerging Markets Week in Review - 2/8/2010 - 2/12/2010
February 16, 2010--The Dow Jones Emerging Markets Composite Index gained 2.80% as the European Unions support of Greece calmed fears of a European contagion. With risky assets trading higher, Technology and Materials led the market sectors upward, gaining 6.52% and 4.39% respectively.
Concerns around where post-stimulus growth in the developed world is going to come from still weighed on Energy stocks as they were up 1.07% on the week, the worst performing industry for the week.
Harvard Endowment’s U.S. Securities Rise 26% on ETF Purchases
February 12, 2010--Harvard University, the richest U.S. university, reported the value of its U.S. securities increased 26 percent in the fourth quarter, as it bought exchange-traded funds that track markets outside the U.S.
Harvard Management Co., the Boston-based company that oversees the school’s $26 billion endowment, increased its holdings in U.S.-traded shares to $2.26 billion as of Dec. 31 from $1.79 billion three months earlier, according to a document filed today with the Securities and Exchange Commission.
Harvard’s biggest security purchases in the fourth quarter were exchange-traded funds tracking markets including China, Brazil and Russia, the filing shows. Emerging markets, measured by the MSCI EM Index, gained 8.3 percent in the three months ended Dec. 31.
São Paulo exchange raises CME stake
February 12, 2010--BM&FBovespa, the São Paulo equities and derivatives exchange, is to raise its stake in the CME Group of Chicago, the world’s biggest exchange group, to 5 per cent in an attempt to attract more institutional and retail investors to Brazil.
“This is a historic day for our exchange and for Brazil,” said Edemir Pinto, chief executive.
“By the end of next year we will be the second biggest exchange group in the world."
