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Morgan Stalney-US ETF Weekly Update
April 30, 2012--US ETF Weekly Update
Weekly Flows: $7.2 Billion Net Inflows
ETF Assets Stand at $1.2 Trillion, up 14% YTD
Nine ETF Launches Last Week
ProShares Announces ETF Share Splits
Vanguard Reduces Expense Ratios on 13 ETFs
US-Listed ETFs: Estimated Flows by Market Segment
ETFs generated net inflows of $7.2 bln last week; the third largest ETF net inflows YTD
Last week’s net inflows were primarily driven by US Equity ETFs ($5.8 bln in aggregate) where all segments were positive
ETF assets stand at $1.2 tln, up 14% YTD; ETFs have posted net inflows 14 out of 17 weeks YTD ($54.3 bln in net inflows)
13-week flows were mixed among asset classes; combined $25.8 bln net inflows
Fixed Income ETFs have consistently generated weekly net inflows (37 straight weeks of net inflows) and account for 52% of
the ETF net inflows over the past 13 weeks
Over the past 13 weeks US Broad-Market and market capitalization ETFs have exhibited aggregate net outflows of $2.1 bln
US-Listed ETFs: Estimated Largest Flows by Individual ETF
SPDR S&P 500 ETF (SPY) generated net inflows of $3.3 bln last week, the most of any ETF
Market Vectors Gold Miners ETF (GDX) generated net inflows of $228 mln last week, continuing its recent streak of seven weeks of net inflows ($1.1 bln in aggregate); conversely, SPDR Gold Trust exhibited net outflows of $221 mln last week
The technology-heavy PowerShares QQQ (QQQ) has posted net outflows for four consecutive weeks ($2.3 bln in aggregate)
US-Listed ETFs: Short Interest
Data Updated: Based on data as of 4/13/12
SPDR S&P 500 ETF (SPY) posted the largest increase in USD short interest
Despite SPY’s sizeable increase in USD short interest, its short interest ratio (short interest divided by average daily traded
volume) declined from 2.03 to 1.75 as SPY’s ADTV increased from 133 mln shares to 159 million shares
iShares Russell 2000 Index Fund (IWM) exhibited the largest decrease in USD short interest (lowest level since 1/31/11)
The average shares short/shares outstanding for ETFs is currently 5%
SPDR Retail ETF (XRT) is the most heavily shorted ETF as a % of shares outstanding (375%); the fund has seen a rise in shares short in each of the last three periods reported
Based on multiple borrowings and the ability to continuously create new shares, shares short as a % of shares outstanding can exceed 100%
US-Listed ETFs: Most Successful Recent Launches by Assets
Source: Bloomberg, Morgan Stanley Smith Barney Research. Data estimated as of 4/27/12 based on daily change in share counts and daily NAVs.
$7.5 billion in total market cap of ETFs less than 1-year old
Over the past 13 weeks, newly launched Fixed Income ETFs generated most net inflows at $763 mln
94 new ETF listings and 17 closures YTD; 42 of the ETFs launched YTD were issued by iShares
Over the past year, many of the successful launches have an income/dividend orientation
Five different ETF sponsors and two asset classes represented in top 10 most successful launches; six of the 10 focus on fixed
income securities
PIMCO Total Return ETF (BOND) continues to generate strong net inflows ($328 mln over past four weeks); notably, BOND
accounts for 91% of newly launched Active ETF net inflows over the past 13 weeks
Top 10 most successful launches account for 57% of market cap of ETFs launched over the past year
request report
Source: Morgan Stanley
Treasury Announces Marketable Borrowing Estimates
April 30, 2012--The U.S. Department of the Treasury today announced its current estimates of net marketable borrowing for the April - June and July-September 2012 quarters:
During the April- June 2012 quarter, Treasury expects to issue $182 billion in net marketable debt, assuming an end-of-June cash balance of $95 billion.
This borrowing estimate is $19 billion lower than announced in January 2012. The decrease is primarily due to projections of lower outlays and higher issuances of State and Local Government securities, partially offset by lower receipts.
During the July-September 2012 quarter, Treasury expects to issue $265 billion in net marketable debt, assuming an end-of-September cash balance of $95 billion.
During the January - March 2012 quarter, Treasury issued $401 billion in net marketable debt, and ended the quarter with a cash balance of $43 billion. In January 2012, Treasury estimated $444 billion in net marketable borrowing and assumed an end-of-March cash balance of $30 billion. The higher cash balance and lower borrowing were driven primarily by lower-than-projected outlays and higher net issuances of State and Local Government Securities.
Additional financing details relating to Treasury’s Quarterly Refunding will be released at 9:00 a.m. on Wednesday, May 2, 2012.
view the Sources and Uses Reconciliation Table
Source: US Department of the Treasury
Report On Foreign Portfolio Holdings Of U.S. Securities
April 30, 2012--The final results from the annual survey of foreign portfolio holdings of U.S. securities at end-June 2011 are released today on the U.S. Treasury web site. A revised table on Major Foreign Holders of Treasury Securities, through end-February 2012, is also released.
This survey was undertaken jointly by the U.S. Department of the Treasury, the Federal Reserve Bank of New York, and the Board of Governors of the Federal Reserve System. The next survey will be for end-June 2012 and preliminary data are expected to be released by February 28, 2013.
Complementary surveys measuring U.S. holdings of foreign securities are also carried out annually. Data from the most recent survey, reporting on securities held at year-end 2011, are currently being processed. Preliminary results are expected to be reported by August 31, 2012.
Overall Results
The survey measured foreign portfolio holdings of U.S. securities as of June 30, 2011, to be $12,440 billion, with $3,830 billion held in U.S. equities, $7,731 billion in U.S. long-term debt securities1 (of which $1,140 billion are holdings of asset-backed securities (ABS) 2 and $6,591 billion are holdings of non-ABS securities), and $878 billion held in U.S. short-term debt securities. The previous survey, conducted as of June 30, 2010, measured total foreign portfolio holdings of U.S. securities at $10,691 billion, with holdings of $2,814 billion in U.S. equities, $6,921 billion in U.S. long-term debt securities, and $956 billion in U.S. short-term debt securities .
view the Foreign Portfolio Holdings of U.S. Securities update
view the Major Foreign Holders of Treasury Securities, through end-February 2012 table
Source: US Department of the Treasury
Open-End Investment Funds in the US Industry Market Research Report Now Available from IBISWorld
April 30, 2012--While assets under management (AUM) have fluctuated since 2006, the industry continues to be concerned with reduced fees. Capital markets depreciated dramatically during the five years to 2012 as high unemployment led to less income and investment savings, while recessionary cuts in company dividends and defined-contribution employee matching exacerbated the downturn.
Rebounding capital markets and renewed company dividends at the end of the five-year period will support industry growth. For these reasons, industry research firm IBISWorld has added a report on the Open-End Investment Funds industry to its growing industry report collection.
read more
Source: IBIS World
Celent and Moody's predict further ETF growth
April 27, 2012--The exchange traded funds industry is poised for further growth in 2012 and beyond, according to a pair of reports published this week by Celent, the research consultancy, and Moody's Investors Services, the ratings agency.
New rules and regulations should be a net positive for the ETF industry, according to Moody’s ETF Industry Overview report, which said that the harmonisation of product labelling and increased disclosure and reporting was a “necessary and logical next step”.
read more
Source: FT.com
Horizons ETFs Announces ETF Closures
April 27, 2012 --Horizons Exchange Traded Funds Inc. ("Horizons ETFs") and its affiliate Horizons ETFs Management (Canada) Inc. (the "Manager") announced today that it will be terminating certain exchange traded funds ("ETFs") effective at the close of business on Friday June 29, 2012.
The ETFs being terminated (collectively, the "Terminated ETFs") are as follows:
Horizons BetaPro COMEX® Long Gold/Short Silver Spread ETF (HBZ)
Horizons BetaPro COMEX® Long Silver/Short Gold Spread ETF (HZB)
read more
Source: Horizons Exchange Traded Funds Inc.
Standard & Poor's Announces Changes In The S&P/TSX Canadian Indices
April 27, 2012--Standard & Poor's will make the following changes in the S&P/TSX Canadian Indices:
The shares of Pan Terra Industries Inc. (TSXVN:PNT) will trade under the new name Kombat Copper Inc. in the S&P/TSX Venture Composite Index after the close of Friday, April 27, 2012.
The new ticker symbol will be "KBT" and the new CUSIP number will be 50045T 10 8. There is no consolidation of capital.
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.
Source: Standard & Poor's
Maple offer for TMX on knife edge
April 27, 2012-Another potential big stock exchange deal could soon be history. A group of Canadian banks and pension funds have said they may not extend their C$3.8bn ($3.7bn) offer to buy TMX Group, the country's largest exchange operator, past a deadline on Monday, citing a continued stiff regulatory review.
That review may still be resolved favourably for the group, with antitrust authorities saying that some of the changes requested by securities regulators could ease their concerns.
read moe
Source: FT.com
National Income and Product Accounts Gross Domestic Product, 1st quarter 2012
(advance estimate)
April 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 2.2 percent in the first quarter of 2012 (that is, from the fourth quarter to the first quarter), according to the "advance" estimate released by the
Bureau of Economic Analysis. In the fourth quarter of 2011, real GDP increased 3.0 percent.
The Bureau emphasized that the first-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 first quarter, based on more complete data, will be released on May 31, 2012.
The increase in real GDP in the first quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, private inventory investment, and residential fixed investment that were partly offset by negative contributions from federal government spending, nonresidential fixed investment, and state and local government spending. Imports, which are a subtraction
The deceleration in real GDP in the first quarter primarily reflected a deceleration in private inventory investment and a downturn in nonresidential fixed investment that were partly offset by accelerations in PCE and in exports.
view the GROSS DOMESTIC PRODUCT: FIRST QUARTER 2012 (ADVANCE ESTIMATE)
Source: BEA
Vanguard Cuts Fees on Popular ETFs.
April 27, 2012--The ETF battles continue. Vanguard Group, the third-largest ETF provider, cut fees on 13 of its exchange-traded funds this week, bringing their costs to investors in line or ahead of those of some rival firms.
In a release, the company said that increasing assets under management at the funds made the cuts possible. Most of the changes went into effect on Thursday.
The affected ETFs – which include the Vanguard S&P 500 Index, Total Stock Market Index and Total Bond Market Index, among others – simply seek to track certain market indexes rather than to beat the market. Such ETFs have become increasingly commoditized as providers such as Charles Schwab, Blackrock’s iShares and State Street Global Advisors’ SPDR shares offer similar funds. That’s left the companies little choice but to compete on price.
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Source: Wall Street Journal
