Global ETF News Older than One Year
ETFGI monthly newsletter-Global ETF and ETP assets reached US$2.16 trillion, a new record high, at the end of July 2013
August 5, 2013--August 6, 2013-- According to preliminary figures from ETFGI's Global ETF and ETP industry insights report, near record net inflows of US$44.08 billion and strong market performance helped to push global ETF and ETP assets to US$2.16 trillion at the end of July 2013. There are now 4,883 ETFs/ETPs, with 9,925 listings, from 209 providers listed on 57 exchanges.
ETFGI is proud to announce that Deborah Fuhr has been included in the WealthManagement.com “Ten to Watch in 2014” list.
Year to date (YTD) net inflows into ETFs/ETPs are at a record level of US$148.53 billion, above the US$130.47 billion at this time in 2012. Net new inflows of US$44.08 billion into global ETFs and ETPs in July were just short of breaking the record level of net inflows set in September 2012.
"Dovish comments from the Fed and positive market performance encouraged investors to put net inflows of US$44.08 billion back into the market through ETFs/ETPs" according to Deborah Fuhr, Managing Partner at ETFGI.
EQUITY
In July, Equity ETFs/ETPs gathered the largest net inflows with US$41.62 billion. North American/US equity ETFs/ETPs gathered the largest
net inflows with US$32.99 billion, followed by European equity indices with US$3.51 billion, and developed Asia Pacific equity with US$1.82
billion.
FIXED INCOME
Fixed income ETFs/ETPs experienced net inflows of US$5.1 billion. High yield ETFs/ETPs gathered the largest net inflows with US$3.0
billion, followed by government bonds with US$2.2 billion, and corporate bonds with US$868 million, while inflation-linked fixed income
ETFs/ETPs experienced the largest net outflows with US$650 million.
Source: ETFGI
SPDR University Latest Commentary-Weekly Market Report
August 2, 2013--ECONOMIES:
Manufacturing improves across most of the G7. The Fed leaves policy unchanged but strikes a more dovish tone. The jobs
report disappoints, while growth remains lackluster in the US.
GDP rises moderately in Canada. The Bank of England and the European Central Bank leave policy unchanged. Industrial production tumbles in Japan. Credit growth picks up slightly in Australia. GDP falls again in Spain.
MARKETS: Central bank dovishness supports risk appetites. Equities are mostly higher. G7 government bonds are mixed. AUD continues its slide. Oil trades sideways. Gold falls.
THE WEEK IN REVIEW
US
As expected, the FEDERAL RESERVE (FED) left administered interest rates and its asset purchase program unchanged. It also kept the same unemployment-and-inflation-based forward guidance on administered rates. Chairman Bernanke's guidance (provided at the press conference following the last meeting) that tapering of asset purchases could begin later this year was not repeated in the policy statement. However, this was not surprising and should not be interpreted as a signal that the Fed is backing away from this guidance. Tapering is very much data dependent. Meanwhile, the latest policy statement struck a more dovish tone, likely to reassure markets that whenever tapering actually begins the Fed still anticipates keeping policy extremely easy, with the funds rate near zero, for quite a while yet NEXT WEEK PREVIEWED SPOTLIGHT: The Bank of Japan should leave policy unchanged but the Reserve Bank of Australia will likely cut its policy rate a quarter point. GDP should fall in Italy.
Source: SSgA
Improving Eurozone Outlook: Russell Indexes showed an improving Eurozone in July as Russell investment strategists upgrade Eurozone equities from underweight to neutral.
August 1, 2013--Eurozone equity markets were up strongly in July month-to-date as of July 29 according to the Russell Indexes, with a 5.46% return for the Russell Eurozone Index following a 3.75% return in the first half of 2013.
This compares to a 2.78% return for the Russell Global ex-U.S. Index for July following a 2.09% return for the first half of 2013.
Within the Russell Eurozone Index, country constituents Ireland (20.45%), France (12.79%) and Germany (9.68%) led year-to-date returns as of July 29, while country constituents Austria (-0.02%), Luxembourg (-3.32%) and Greece (-12.36%) were the weakest performers for this same time period. Country constituent Spain (9.47%) led the Index for July month-to-date as of July 29, while Greece (-1.83%) was the bottom performer within the Index for this same time period.
Source: Russell Indexes
BATS Chi-X Europe, BATS U.S. Options Set Monthly Market Share Records In July
Records Set in Spain, Nordics, EuroSTOXX 50 and Depositary Receipts Trading
August 1, 2013--BATS Global Markets (BATS) today reported that BATS Chi-X Europe set seven monthly market share records in its second month as a Recognised Investment Exchange while BATS Options recorded its best month with 4.3% market share.
BBATS Chi-X Europe posted market share of 24.3% in the EuroSTOXX 50, surpassing the previous record of 23.9% set in November 2012, and 15.6% in Spain’s IBEX 35, topping the 14.4% set in June. Additional Europe records in July include Depositary Receipts (FTSE RIOB, 9.0%), Frankfurt’s DAX (28.8%), Stockholm’s OMXS30 (31.4%), Helsinki’s OMXH25 (30.7%), and Oslo’s OBX (23.2%). Overall, BATS Chi-X Europe recorded market share of 24.2% in July vs 22.5% June. Average daily notional value was €7.3 billion in July vs €8.0 billion in June.
Source: BATS
BlackRock's iShares hires Barclays Wealth product guru
August 1, 2013--iShares, BlackRock's exchange-traded funds (ETF) arm, has appointed Tom Fekete as head of product development as part of its bid to expand its market share.
Fekete joins from Barclays Wealth, where he was the Europe, Middle East and Africa (EMEA) head of investment products and global head of foreign exchange advisory. He held the position for four years.
Source: CityWire
ETF Securities-Global Commodity ETP Quarterly
August 1, 2013--The report includes:
A comprehensive and fully up-to-date reference guide to investing in global commodity ETPs and indexes --no ETP type or geographic area is excluded. The report details the large and growing choice of commodity ETP exposures and strategies around the world.
Summary analysis of global commodity ETP flows, trading volumes and AUM trends. Includes a detailed analysis of the main trends in 2013 and the outlook for the rest of year.
Roll yield analysis (contango/backwardation) broken down by individual commodity and commodity sectors.
Useful fundamental commodity data and information. An updated and revised inventory trends section, positioning data, futures curve developments, commodity index compositions and weights.
Source: ETF Securities
Average daily volume of 6.8 million contracts at Eurex Group in July
Segment interest rate derivatives grew by 15 % year-on-year
August 1, 2013--In July 2013, the international derivatives markets of Eurex Group recorded an average daily volume of 6.8 million contracts (July 2012: 8.1 million).
Of those, 4.6 million were Eurex Exchange contracts (July 2012: 5.7 million), and 2.2 million contracts (July 2012: 2.3 million) were traded at the U.S.-based International Securities Exchange (ISE). In total, 106.9 million contracts were traded at Eurex Exchange and 48.7 million at ISE.
Source: Eurex
IMF 2013 Spillover Report
August 1, 2013--Summary: Five years after the global financial crisis, the severe tensions and risks rooted last year in some of the "Systemic five" (S5)-China, euro area, Japan, United Kingdom, United States--have abated but all five are still operating below potential, i.e., they are not contributing to global activity as much as they might: if they could somehow close their output gaps, global output would be closer to potential by 3 percentage points.
Meanwhile, many parts of the rest of the world have been at or near potential. Most recently though, there have been signs of accelerated recovery in the United States and slowdown in emerging markets. This continued divergence in cyclical positions poses a global challenge, namely to find policies that help the S5 close their output gap without over-stimulating or over-tightening, through spillovers, economies that do not need it.
view the IMF 2013 Spillover Report
Source: IMF
BlackRock ETP Research-ETP Flows Quarterly -Dissecting Dividend Funds
July 31, 2013--Income-starved investors have turned to dividend stocks as bond alternatives. Exchange-traded products (ETPs) focused on dividends have rushed to meet this demand.
Highlights include:
Dividend funds have gathered $87 billion in assets over the years, accounting for 5.7% of total global equity ETP assets.
Money flows closely track ETPs specializing in investment grade bonds—and tend to move inversely with flows into cyclical stocks.
Dividend funds vary greatly in industry sector exposure and yield because of differences in methodologies and selection criteria.
US stocks dominate the holdings of the top 14 global divided funds with an 82% share. The top 25 stocks held by dividend funds make up 30% of total assets.
Stock concentration within industry sectors is relatively high, with the top five stocks making up 65% of energy holdings of dividend funds.
FOR ACCREDITED INVESTORS ONLY IN CANADA AND PROFESSIONAL INVESTORS IN OTHER REGIONS.
Source: BlackRock-ETP Research
Focus on Reviving Credit Growth as External Funding Withdrawal in Emerging Europe Picks Up
July 30, 2013--The Vienna 2 Initiative Steering Committee[1] met in Luxembourg on 17 July, 2013 to discuss deleveraging trends, work to address asset quality issues in emerging Europe, and the implications for the proposed EU resolution framework on emerging European economies, including non-EU member countries.
For the first time, the representatives of major parent bank groups active in emerging Europe were invited to and presented their new role and commitment to the Steering Committee.
External funding reductions pick up in first quarter
The Steering Committee noted in its new Deleveraging Monitor that there were further reductions in external funding from western banks to Central, Eastern, and South Eastern Europe (CESEE) excluding Russia and Turkey during the first quarter of 2013. Furthermore, the forecast provided in the previous Deleveraging Monitor that the second wave of funding reductions that had started in mid-2011 would taper off did not prove correct. In fact, cross-border funding restrictions persist, with significant across countries, due, in part, to the impact of external perceptions of domestic climates. Private sector credit growth remained weak, with the exception of Turkey, and loan-to-deposit ratios declined further. There is a concern that deterioration in market sentiment vis-à-vis emerging market countries that started in late May may intensify funding reductions. The continued close monitoring of deleveraging with an eye for systemic risks to the region will therefore remain very important.
view the Deleveraging Monitor report
Source: World Bank
