Global ETF News Older than One Year
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
Earnings gap drives performance wedge between US and Eurozone equities
July 30, 2013--Eurozone banks are unlikely to repeat the stellar Q2 results of US banks, where most have exceeded expectations.
US equities may extend their rally as the banking sector strengthens. Eurozone banks’ deeply discounted valuations imply weakness, and may undermine Eurozone equities.
Source: Boost
IOSCO publishes Recommendations for Supervisory Colleges for CRAs
July 30, 2013--The International Organization of Securities Commissions (IOSCO) published today the final report on Supervisory Colleges for Credit Rating Agencies, which recommends establishing supervisory colleges for internationally active credit rating agencies (CRAs), and provides preliminary guidelines on how to constitute and operate them.
The recommendations are aimed at improving the integrity of CRAs, as part of IOSCO´s effort to enhance investor protection and the fairness, efficiency and transparency of securities markets. G20 leaders are also concerned with the integrity of CRAs and have repeatedly encouraged IOSCO to work to improve their effectiveness.
Source: IOSCO
ETF Securities Precious Metals Weekly-Silver Shines as Gold:Silver Ratio at 3-Yr High Attracts Investors.
July 29, 2013--Gold:silver ratio hit the highest level in nearly 3-years. Gold posted a third
consecutive weekly gain aided by a weaker US dollar and mixed economic data, and silver followed its slipstream.
Silver has been the weakest performing metal on a 12-month basis, but outperformed other precious metals last week, gaining 3.1%. In a role reversal, palladium, the best performer on a 12-month basis, was the biggest loser last week, declining 1.6%. While US benchmark equities were affected by end of the month position squaring and traditionally light summer holiday turnover, precious metals buyers remained active. The US Mint reported last week that it is on pace to sell 4.7mn ounces of silver coins in July, up over 100% from a year earlier.
The sale of US Mint silver coins is running at a record pace in 2013, potentially near 50mn ounces. In 2011, The US Mint’s previous record of 40mn ounces in 2011, roughly matched total US annual production in that year. According to The Silver Institute, US production in 2012 was just over 32mn ounces, well below the current level of US coin demand.
Options pricing indicates potential upside for silver. Silver remains the PM to watch as is hovers at US$20/oz., a key pivot point since the rally to $21oz. in the spring of 2008.
Source: ETF Securities
Vanguard Reports Strong Global ETF Growth; Continues to Broaden ETF Lineups and Lower Expenses
July 29, 2013--Vanguard today reported that its exchange-traded funds (ETFs) continue to gain widespread investor acceptance in the United States and in other markets around the world.
The third-largest worldwide provider of ETFs, with global ETF assets of $281 billion as of June 30, 2013, has expanded its suite of products in the United States, Australia, Canada, and Europe, and introduced its first ETF in Hong Kong.
"Investors worldwide have become more focused on broad diversification, low investment costs and transparency—the key characteristics of Vanguard index funds and ETFs. It is gratifying to see investors embracing the Vanguard way of investing as we seek to best position them for long-term financial success,” said Jim Norris, managing director for Vanguard International.
Source: Vanguard
