Global ETF News Older than One Year
ETF Securities-Precious Metals Weekly: Platinum and Palladium Outperform as Rising Demand and Supply Constraints Drive Gains
June 10, 2013--Last week the gold price fell as better-than-expected US jobs data spurred a rally in the dollar and accelerated demand for cyclical equities.
In our view, fears the Fed will reel back its quantitative easing program in a significant manner in the near term are overblown given that nonfarm payroll additions need to be over 200K per month in order to drive a meaningful decline in the unemployment rate (the unemployment rate in fact rose last month) and the inability of the US economy/financial system to handle a sustained significant rise in bond yields. India's latest actions to curb gold demand (see below) also dealt a blow to the gold price last week. Platinum and palladium, on the other hand, defied dollar appreciation and rose 3% and 1% respectively as South Africa supply concerns continue to grow and auto demand appears robust. Silver, traded broadly flat over the week as mixed economic data tore the metal's industrial and store of value properties in opposite directions. To the degree that the global industrial recovery continues and South Africa supply issues remain unresolved, we expect the PGMs to continue to outperform gold and silver.
India increases gold import tax and widens ban on gold consignment imports. Last week India increased its gold import duty to 8% from 6%, quadrupling the tax since January. The levy on platinum imports was also increased to 8% from 6%. India also widened the ban on consignment-based gold imports to cover state-run trading companies and others authorised to directly import gold. Indian consumers, who have helped prop-up gold demand since prices fell by over 15% in April, are an important source of support for the metal as ETF investors continue to sell.
Source: ETF Securities
BlackRock ETP Landscape Research-No "Sell in May" for ETP Investors
June 7, 2013--Global ETPs attracted $26.5bn in May, keeping year-to-date flows ahead of last year's record pace
Year-to-date ETP flows grew 24% over 2012 levels, breaking through the $100 billion mark.
Investors exhibited an increased appetite for economically-sensitive assets compared to last month as the majority of this month’s flows were in Equity funds.
Flows into Japanese Equities continued despite some local equity market volatility, with flows accelerating to a new record high.
Gold outflows continued for a fifth straight month.
In the US Sector category, there was a clear shift in investor preference from defensive categories in April to economically sensitive categories in May.
Source: Source: BlackRock ETP Landscape Research
EPFR Global News Release-Bond Funds battered by QE3 doubts
June 7, 2013--EPFR Global-tracked Bond Funds started June by posting their biggest weekly outflows on record as fears the US Federal Reserve will start reining in its current quantitative easing program-QE3-put pressure on bond prices and chased investors out of riskier asset classes.
The week ending June 5 saw over $6 billion redeemed from High Yield Bond Funds, over $4 billion from Emerging Markets Equity Funds and over $1 billion from Global and Emerging Markets Bond Funds.
Overall, EPFR Global-tracked Bond Funds recorded collective outflows of $12.53 billion, with US funds accounting for two-thirds of that total, while redemptions from Equity Funds hit a 28 week high of $6.21 billion. Flows into Money Market Funds were volatile, posting two daily swings in excess of $17 billion before ending the week with net inflows of $3.87 billion.
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Source: EPFR
State Street appoints head of EMEA ETFs
June 7, 2013--Alexis Marinof has been appointed as inaugural head of Europe, Middle East and Africa at State Street Global Investors' ETF platform SPDR as business in the area gains momentum.
Marinof will be based in the London office and will be responsible for managing the ETF strategy across the region, working closely with the product development, sales, marketing and capital markets teams.
Source: International Adviser
NASDAQ OMX Closes EUR 600,000,000 Senior Notes Offering
June 7, 2012--The NASDAQ OMX Group, Inc. (NDAQ) today announced that it closed a public offering of EURO600,000,000 aggregate principal amount of Euro-denominated 3.875% senior notes due 2021 (the "Notes").
The NASDAQ OMX Group, Inc. intends to use the net proceeds from the offering, together with cash on hand and/or borrowings under the revolving portion of its senior credit facility, to fund the consideration for the previously announced acquisition of the eSpeed platform and related expenses and for general corporate purposes, which may include the repayment of indebtedness.
Source: NASDAQ OMX
Interconnectivity Critical to Unlocking ASEAN's Vast Growth Potential
June 6, 2013--On the opening day of the World Economic Forum on East Asia, ASEAN business and political leaders emphasized the need for greater connectivity and regulatory harmonization to unlock ASEAN's vast growth potential, now and in the coming decade.
In a session on the region’s networked future, participants heard that growth in ASEAN will exceed expectations, but only if the regional bloc synergizes supply chains and prioritizes regional unity.
Source: World Economic Forum
Record-breaking ETF inflows top $100bn
June 6, 2013--More than $100bn has flowed into exchange traded funds so far this year, as the ETF industry's expansion continues at a record-breaking pace.
ETFs (funds and products) have attracted inflows of $107.4bn in the first five months of 2013, an increase of 31.3 per cent on the same period last year, according to ETFGI, a consultancy that monitors industry trends.
Source: ETFGI
Has competition improved markets?
June 5. 2013--Equity markets are undergoing nothing short of a competitive revolution. Equity Market titans such as the NYSE, the London Stock Exchange, NASDAQ, Deutsche Borse and Euronext now share the limelight with dozens of players.
Abstract
This paper examines the impact of trading on markets partially exempt from National Market System requirements on equity market quality. Lit and dark trading venues differ in their regulatory structure most notably in whether they must provide fair-access and pre-trade transparency and restrict sub-penny trading increments. We find evidence consistent with the notion that dark venues rely on their special features to segregate order flow based on asymmetric information risk, which results in their transactions being less informed and contributing less to price discovery on the consolidated market.
Source: CMCRC
ETFGI PRESS RELEASE: Net inflows of 107 billion US dollars YTD through the end of May 2013 helped push global assets in ETFs and ETPs to new high
According to ETFGI record net inflows of $107 billion year to date through the end of May 2013 helped to push assets invested globally in ETFs and ETPs to a new all-time high of $2.14 trillion
June 5, 2013--ETFs and ETPs have received record net inflows of $107 billion through the end of May 2013 which is 31% higher than the $82 billion in net flows at this time in 2012.
These inflows have helped to push assets invested globally in Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) to a new all-time high of $2.14 trillion US dollars, according to preliminary figures from ETFGI’s Global ETF and ETP industry insights report for May 2013. There are now 4,849 ETFs and ETPs, with 9,875 listings, assets of $2.14 trillion, from 211 providers listed on 56 exchanges. ETF and ETP assets have increased by 9.6% from $1.95 trillion to $2.14 trillion.
ETFs and ETPs in May received $24.3 billion in net inflows. Equity ETFs and ETPs gathered the largest net inflows with $25 billion, followed by fixed income ETFs and ETPs with $3.1 billion, while commodity ETFs and ETPs experienced net outflows with $6.7 billion.
Equity ETFs and ETPs saw net inflows of $25 billion in May with US/North American equity exposures gathering $16 billion, the largest net inflows, followed by developed Asia Pacific equity with $8.9 billion, and global equity with $2.1 billion net inflows, while products offering emerging market equity exposure experienced the largest net outflows with $4.3 billion.
Source: ETFGI
S&P Dow Jones Indices: Dow Jones-UBS Commodity Index: Commodities Fall Short In May
June 5, 2013--KEY HIGHLIGHTS
DJ-UBS Commodity Index fell 2.2% in May, bringing the index's YTD total return down to -6.0%.
DJ-UBS Energy lost 4.7% this month and was almost flat YTD, coming in at 0.6%.
DJ-UBS Grains was up 2.3% in May, driven by wet weather that resulted in delayed plantings.
DJ-UBS Softs fell 6.8% MTD, bringing the index to its lowest level since July 2010.
Source: Mondovisione
