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Morgan Stanley-ETF Weekly Update
April 9, 2012--US ETF Weekly Update
Weekly Flows: $1.1 Billion Net Inflows
ETF Assets Stand at $1.2 Trillion, up 13% YTD
Five ETF Launches Last Week
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US-Listed ETFs: Estimated Flows by Market Segment
ETFs posted net inflows for the 2nd consecutive week; $1.1 bln net inflows in the short week
Last week’s net inflows were led by US Small- & Micro-Cap ETFs which generated net inflows of $715 mln
ETF assets stand at $1.2 tln, up 13% YTD; ETFs have posted net inflows 12 out of 14 weeks YTD
13-week flows were mostly positive among asset classes; combined $47.8 bln net inflows
Fixed Income ETFs have consistently generated weekly net inflows (34 straight weeks of net inflows)
Over the past 13 weeks, EM Equity ETFs exhibited net inflows of $11.0 bln; this is a reversal from 2011 when the category had
net outflows of $2.2 bln for the full year
US-Listed ETFs: Estimated Largest Flows by Individual ETF
iShares Russell 2000 Index Fund (IWM) posted net inflows of $625 mln last week, the most of any ETF
Despite IWM’s net inflows last week, the ETF has struggled YTD, posting net outflows of $299 mln
Not only did the Vanguard MSCI Emerging Markets ETF (VWO) generate strong net inflows last week, over the past 13 weeks it has posted net inflows of $6.3 bln, the most of any ETF; VWO has exhibited net inflows for 20 straight weeks
US-Listed ETFs: Short Interest
Data Unchanged: Based on data as of 3/15/12
iShares Russell 2000 Index Fund (IWM) posted the largest increase in USD short interest
IWM’s shares short are at their highest levels since 11/30/11
SPY had the largest decline in USD short interest since last updated; given SPY’s size and liquidity it is not unusual to see big
swings in its USD short interest
Retail ETFs make up the top two most heavily shorted ETFs (shares short/shares outstanding)
The average shares short/shares outstanding for ETFs is currently 4%
Based on multiple borrowings and the ability to continuously create new shares, short interest as a % of market cap can exceed 100%
US-Listed ETFs: Most Successful Recent Launches by Assets
Source: Bloomberg, Morgan Stanley Smith Barney Research.
Data estimated as of 4/5/12 based on daily change in share counts and daily NAVs.
$7.3 billion in total market cap of ETFs less than 1-year old
Over the past 13 weeks, newly launched US Custom ETFs generated most net inflows at $813 mln
81 new ETF listings and 16 closures YTD
Over the past year, many of the successful launches have an income/dividend orientation
Six different ETF sponsors and two asset classes represented in top 10 most successful launches
The recently incepted PIMCO Total Return ETF (BOND), which underwent a ticker change last week, continued to gain traction, taking in $51 mln in net new money last week, the most of any new ETF
Top 10 most successful launches account for 55% of market cap of ETFs launched over the past year
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Source: Morgan Stanley
DB Equity Research Equity Research-North America:Markets & ETFs: ETP assets lost 0.9%, but ETP flows remained positive
April 9, 2012--Last week, markets continued on correction mode recording the second negative week in the last three weeks. The US (S&P 500) lost 0.74%. Other developed and emerging markets outside the US did similarly; the MSCI EAFE (in USD) dropped by 2.99%, while the MSCI EM (in USD) declined by 0.43% during the week. Moving on to other asset classes, the 10Y Treasury yield retreated by 16bps last week, while the DB Liquid Commodity Index was down by 0.10%. Other sectors were mixed.
The Agriculture sector (DB Diversified Agriculture Index), Gold, and Silver prices fell by 0.66%, 1.91%, and 1.25%, respectively; while WTI Crude Oil prices edged higher by 0.28%. Last but not least, Volatility (VIX) advanced by 7.74% during the same period.
The total US ETP flows from all products registered $1.2bn of inflows during last week vs $4.4bn of inflows the previous week, setting the YTD weekly flows average at +$3.8bn (+$53.2bn YTD in total cash flows).
Equity, Fixed Income, and Commodity ETPs experienced flows of +$0.8bn, +$0.4bn, and +$0.0bn last week vs. +$2.9bn, +$1.5bn, and +$0.1bn the previous week, respectively.
Within Equity ETPs, Small Cap products experienced the largest inflows (+$0.7bn); while Large Cap vehicles experienced the largest outflows (-$0.8bn), followed by US Sector ETPs (-$0.5bn). Within Fixed Income ETPs, Corporates recorded the largest inflows (+$0.6bn), followed by Sovereign products (+$0.6bn). Within Commodity ETPs there weren´t significant flows.
Top 3 ETPs & ETNs by inflows: IWM (+$0.6bn), VWO (+$0.6bn), XLI (+$0.5bn) Top 3 ETPs & ETNs by outflows: DIA (-$0.7bn), TLT (-$0.6bn), XLE (-$0.5bn)
New Launch Calendar: 5 new listings with a tilt towards HY
There were five new ETF listings during the previous week. Four listed on BATS and one listed on NYSE Arca. Four new products provide exposure to High Yield Corporate debt from EM and Global Markets, and the other ETP provides exposure to a portfolio of diversified income investments. (See Fig. 18 for details.)
Turnover Review: dollar volume shrinks on shorter week, but daily average increases on rising volatility Total weekly turnover declined by 12.5% to $250bn vs. $286bn in the previous week. However, daily average volume increased by 9.35% from $57.2bn to $62.5bn on rising volatility. Back to total weekly figures, the largest decrease was on Equity ETP turnover, which fell by $33.5bn or 13.3% to $218bn. Commodity and Fixed Income ETP turnover followed with decreases of 11.52% (-$1.9bn) and 0.8% (-$0.1bn), respectively.
Assets Under Management (AUM) Review:
0.9% down on markets
Negative equity markets and below-average inflows resulted on a pull-back in ETP assets of $10.4bn. ETP AUM fell by 0.9% to $1.18 trillion from the previous week’s level. YTD growth remains strong at 13.1%, however. Assets for equity, fixed income and commodity ETPs moved -$8.1bn, -$0.3bn, and -$2.1bn during last week, respectively.
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Source: Deutsche Bank-Equity Research-North America
CFTC.gov Commitments of Traders Reports Update
April 6, 2012--The current reports for the week of April 3, 2012 are now available.
view updates
Source: CFTC.gov
Huntington files with the SEC
April 6, 2012--Huntington Strategy Shares has filed a amendment no.2, registration statement with the SEC for the
Huntington US Equity Rotation Strategy ETF
Huntington EcoLogical Strategy ETF.
view filing
Source: SEC.gov
iShares Launches Two More ETFs Through BATS
April 6, 2012--iShares is launching its third and fourth new exchange-traded funds of the week. Today the BlackRock subsidiary will release, via the BATS exchange, its Global High Yield Corporate Bond Fund(GHYG) and Morningstar Multi-Asset Income Index Fund (IYLD).
Benzinga reported on the launch.
These two launches follow the debut earlier this week, also on BATS, of two more fixed income ETFs from iShares .
iShares claims that the Global High Yield Corporate Bond Fund is a first for the industry, as it will provide high yield exposure in one investment through developed international corporate bonds denominated in US dollar, euros, pound sterling and Canadian dollar.
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Source: Mutual Fund Wire
ETF Global Insight --Findings for ETFs/ETPs listed in Latin America for Q1 2012
April 5, 2012--SUMMARY
At the end of Q1 2012, the Latin America ETF industry had 32 ETFs, with 472 listings, assets of US$11.0 Bn, from 15 providers on 4 exchanges.
2 new ETFs were listed YTD to March 2012, while 1 ETF delisted
In March 2012, ETFs saw net outflows of US$40.8 Mn.
BBVA Asset Management gathered the largest net inflows in March with US$90.3 Mn.
iShares experienced the largest net outflows in March with US$112.3 Mn.
iShares experienced the largest net outflows YTD with US$569.5 Mn, followed by BBVA Asset Management with US$95.1 Mn and Itau Unibanco with US$37.3 Mn net outflows.
Grupo Bolsa has the largest amount of ETF assets tracking its benchmarks, with US$7.5 Bn, followed by BM&F Bovespa with US$1.7 Bn, and Dow Jones with US$0.6 Bn..
to request more info
Source: Deborah Fuhr, ETF Global Insight LLP
Ban index funds, ETFs to rein in oil prices: groups
April 5, 2012--Lawmakers should ban commodity index funds and exchange-traded funds, a coalition of consumer and public interest groups said on Thursday, blaming the speculative investment vehicles for surging oil and gasoline prices.
Gasoline prices have hit a record for this time of year, renewing concerns about the flood of investment into commodities first highlighted during the 2008 run-up in oil and food prices to all-time highs.
Senator Maria Cantwell, known for urging crackdowns on excessive speculation and energy price manipulation, is drafting legislation that would ban passive investors from the market, a spokesman confirmed. Details are not yet available.
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Source: Reuters
Chicago Board Options Exchange's Inquiry Focuses On Traders
April 5, 2012--The Chicago Board Options Exchange has launched an inquiry into the activities of traders on its markets, examining several years of potential rule violations in the handling of stock-options orders.
The exchange operator's market regulation division this week contacted firms that do business on the CBOE to review "apparent violations" of rules over a three-year period ended in January, according to a letter CBOE sent to member firms this week.
CBOE Holdings Inc. (CBOE), which runs the biggest U.S. stock-options exchange by volume, separately is being investigated by the Securities and Exchange Commission. Federal authorities are exploring whether CBOE has fulfilled its own regulatory functions to supervise registered trading firms, according to documents CBOE filed with regulators in late February.
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Source: Wall Street Journal
Why ETFs are not Taking Over 401k
April 5, 2012--Those holding their breath waiting for ETFs to dominate the 401(k) market are turning blue, and the WSJ takes a peak at why this is so.
For one, the paper finds that ETFs are not necessarily any less expensive than institutional share classes of plain-vanilla index mutual funds. For example, Fidelity Spartan 500 Index carries expenses of 6 to 8 basis points while the SPDR S&P 500 SPY carries 10 bps in expenses.
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Source: The Mutual Fund Wire.com
BlackRock Leads ETF Boom to Global Junk Rally: Credit Markets
April 5, 2012--The $28.4 billion Blackrock Inc (BLK)-led industry of exchange-traded funds that buy U.S. junk bonds is expanding into global speculative-grade debt as the notes outperform dollar-denominated securities by the most since 2009.
BlackRock, the world’s biggest money manager, opened the first ETFs on April 3 that will invest in junk bonds from Europe to Asia after its iShares iBoxx High Yield Corporate Bond Fund in the U.S. grew to more than $14 billion in less than five years. Van Eck Global, the investment firm founded in 1955, opened its International High Yield Bond ETF the same day.
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Source: Bloomberg
