Americas ETP News
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A New Dividend ETF for Schwab, but Has This Trade Become Crowded?
July 27, 2012--Dividend-themed exchange-traded funds have been a popular choice among investors over the past year. The 42 dividend-themed ETFs that we follow raked in $16 billion in flows, nearly a third of every dollar going into equity ETFs, despite the fact that they make up just 5% by count of the 812 equity ETFs available.
With the dividend yield on the S&P 500 Index at 2.1%, well above the 1.7% yield on the Barclays Aggregate Bond Index, who could blame investors for looking to equities? But be cautious when hunting for yield, particularly when moving up the risk ladder from bonds to stocks. Over the past five years, the average dividend ETF has had a volatility of 23%, more than 6 times greater than the 3.6% volatility of the Barclays Aggregate over that same time period.
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Source: Morningstar
IMF Working paper-Latin America: Vulnerabilities Under Construction?
July 27, 2012--Summary: This paper documents developments in mortgage credit and the housing sector in Latin America over the past decade, and compares them with those of other emerging economies. In particular, it examines the real estate and mortgage markets to assess whether (i) growth in mortgage credit is excessive compared to long-term trends; (ii) trends in house prices reflect changes in economic fundamentals;
and (iii) the extent to which household and banking sector vulnerabilities could lead to potential fragilities. Although data limitations hamper a rigorous analysis of trends, our analysis suggests that while there are no imminent misalignments in the real estate and mortgage sectors, they could emerge if current trends persist. Strengthening supervision and addressing data gaps is thus critical to ensure adequate monitoring of risks and vulnerabilities in these sectors.
view the IMF Working paper-Latin America: Vulnerabilities Under Construction?
Source: IMF
ETNs: What You Don't Know Can Hurt You
July 27, 2012--Exchange-traded notes, or ETNs, can easily be mistaken for something else. As unsecured debt securities issued by banks, they look like bonds.
They also can be linked to indexes like exchange-traded funds. But they are neither and it’s worth your time to do a lot of research before you invest in them.
Regulators such as FINRA, which monitors the securities industry, have been warning about the pitfalls of ETNs recently, which usually indicates that investors are running into trouble with them.
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Source: Forbes
CFTC.gov Commitments of Traders Reports Update
July 27, 2012--The current reports for the week of July 24, 2012 are now available.
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Source: CFTC.gov
ISE Introduces Add Liquidity Only Order Type
July 27, 2012--The International Securities Exchange (ISE) today announced that it has introduced a new order type, the Add Liquidity Only Order (ALO). An ALO specifies that the order can only be executed if it adds liquidity to the order book as a "maker."
If the order cannot be added to the book, it will be cancelled, or may be re-priced to rest on the book at the discretion of the firm entering the order.
Boris Ilyevsky, Managing Director of ISE’s options exchange, said, “This new order type gives greater control to our customers as they manage the various fee structures across multiple options exchanges. By using an ALO, a member firm will be able to ensure that an order only executes as a maker on ISE.” ALOs are currently available to member firms connected through ISE’s Direct Trading Interface. The order type will be introduced for FIX and PrecISE connections at a later date.
To learn more, please contact ISE Business Development at bizdev@ise.com.
Source: International Securities Exchange (ISE)
National Income and Product Accounts
Revised Estimates: 2009 through First Quarter 2012
July 27, 2012--Real gross domestic product--the output of goods and services produced by labor and property
located in the United States--increased at an annual rate of 1.5 percent in the second quarter of 2012,
(that is, from the first quarter to the second quarter), according to the "advance" estimate released by the
Bureau of Economic Analysis. In the first quarter, real GDP increased 2.0 percent.
The Bureau emphasized that the second-quarter advance estimate released today is based on source data that are incomplete or subject to further revision by the source agency (see the box on page 3). The "second" estimate for the second quarter, based on more complete data, will be released on August 29, 2012.
The estimates released today reflect the regular annual revision of the national income and product accounts (NIPAs), beginning with the estimates for the first quarter of 2009. Annual revisions, which are usually released in July, incorporate source data that are more complete, more detailed, and otherwise more reliable than those previously available. This release includes the revised quarterly estimates of GDP, corporate profits, and personal income and provides an overview of the effects of the revision.
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Source: BEA
U.S. Department of the Treasury Economic Statistics-June 2012
July 26, 2012--The Monthly Economic Data Table has been updated.
view the updated-U.S. Economic Statistics-Monthly Data
Source: US Department of the Treasury
BMO Investments Inc. Announces Portfolio Management Change
July 26, 2012--BMO Investments Inc. today announced that, effective on or about September 4, 2012, Pyrford International Limited will no longer serve as the sub-advisor for BMO Global Tactical ETF Class, a class of shares of BMO Global Tax Advantage Funds Inc.
BMO Asset Management Inc., the portfolio manager for the fund since the fund's inception, will assume all responsibility for the entire portfolio.
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Source: BMO Investments Inc.
Written Testimony of Treasury Secretary Geithner before the Senate Committee on Banking, Housing, and Urban Affairs on the Financial Stability Oversight Council Annual Report to Congress
July 26, 2012--Chairman Johnson, Ranking Member Shelby, and members of the Committee, thank you for the opportunity to testify today regarding the Financial Stability Oversight Council's (the "Council") annual report.
Each year, the Council is required to prepare a public report reviewing financial market and regulatory developments, potential threats to financial stability, and recommendations to strengthen the financial system. My testimony today reviews the conclusions and recommendations made by the Council in its second annual report, which is being submitted in full alongside this testimony.
Measures of Strength in the Financial System
The strategy adopted by the United States to repair and reform the financial system after the crisis has helped produce a stronger and more resilient system.
We have forced banks to substantially increase the amount of capital they hold, so that they are able to provide credit to the economy and absorb losses in the future. Tier 1 common capital levels at our country’s banks are up by $420 billion, or 70 percent, from three years ago. The ratio of tier 1 common equity to risk-weighted assets at these institutions increased from 6 percent to over 11 percent during this period.
view the Financial Stability Oversight Council Annual Report 2012
Source: US Department of the Treasury
ICI-Exchange Traded Fund Data June 2012
July 26, 2012--The combined assets of the nation's exchange-traded funds (ETFs) were $1.167 trillion in June, according to ICI. The Institute's monthly statistical collection also includes the value of shares issued and redeemed by exchange-traded funds.
Statistics contained in the Institute’s monthly ETF report have been obtained from information provided to ICI by exchange-traded funds and commodity funds. Commodity funds are listed in the Domestic (Sector/Industry) category.
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Source: ICI
