Global ETF News Older than One Year
ETFs enter plans as part of higher risk strategies
December 7, 2012--Exchange traded funds may not yet be ubiquitous in defined contribution (DC) retirement plans, but they are beginning to appear in some inconspicuous areas.
The DC market has been considered a holy grail for some promoters of the ETF industry, if only for its significant asset base. But ETFs have so far struggled to make headway in the $4.5tn market. Within the 401(k) segment of DC, more than half of 401(k) assets are in mutual funds, while less than 1 per cent of assets are in standalone ETFs as of 2011, according to Cerulli Associates.
Source: FT.com
MIGA Report Finds that Sovereign Default and Expropriation Risks Worry Investors
However, Investors Moving Forward Despite Ongoing Uncertainty
December 6, 2012--Foreign investors, attracted by stronger economic growth in developing countries while mindful of risks, remain relatively optimistic about these destinations in the short term according to the results of a survey released in a report by the World Bank's Multilateral Investment Guarantee Agency (MIGA).
World Investment and Political Risk notes that half of the survey’s respondents plan to increase investment in developing countries in the next 12 months.
This sentiment dovetails with foreign direct investment (FDI) trends that show developing-country flows continue to account for a substantial share of global FDI: in 2012 they are estimated to be 36 percent of inflows and 14 percent of outflows. FDI to developing countries is expected to rebound in 2013 to exceed pre-2008 highs. New challenges, especially the ongoing sovereign debt crisis and recession in the euro zone, have slowed the flow of FDI from traditional sources. However, FDI from new investors based in developing countries has risen significantly in recent years, and is expected to reach a record level this year. Notably, about a quarter of developing countries’ outward FDI currently goes into other developing countries (“South-South” investment).
view the 2012 World Investment and Political Risk report
Source: World Bank
Vanguard considering active rollouts in Europe
December 6, 2012-- Vanguard says it is "possible" its current European fund line-up will be extended to include actively managed products.
The US mutual fund firm, which launched into the UK in 2009 with several low-cost index funds, says its success in the US active fund sector would provide it with the ideal springboard to offer similar products in Europe.
Source: FT.com
Dow Jones-UBS Commodity Indices: November 2012 Performance Report
December 6, 2012--The Dow Jones-UBS Commodity Index was up 0.04% for the month of November.
The Dow Jones-UBS Single Commodity Indices for orange juice, tin and aluminum had the strongest gains with month-end returns of 15.73%, 9.69% and 9.62%, respectively. The three most significant downside performing single commodity indices were soybean meal, soybean and natural gas, which ended the month down 8.48%, 7.10% and 6.78%, respectively.
Source: Mondovisione
ETF and ETP assets reach all-time high of 1.9 trillion US dollars at end November 2012
December 5, 2012--Global Exchange Traded Fund (ETF) and Exchange Traded Product (ETP) assets reached an all-time high of US$1.9 trillion at the end of November 2012, according to figures from ETFGI's monthly global ETF and ETP industry insights.
Assets in ETFs and ETPs reached all-time highs of US$1.3 trillion in the US, US$359 billion in Europe, US$78.7 billion in Asia Pacific (ex-Japan), US$46 2E9 billion in Japan and US$11.6 billion in Latin America. Year to date through end of November 2012, ETF and ETP assets have increased by 23.8% from US$1.5 trillion to US$1.9 trillion.
Over the past 10 years the global compounded annual growth rate (CAGR) of these products has been 30.2%. There are currently 4,726 ETFs and ETPs, with 9,719 listings, assets of US$1.9 trillion, from 208 providers on 56 exchanges.
With the outcomes of the US elections and super storm Sandy known, and a sense among investors that a solution to the looming fiscal cliff will be negotiated, US$9 billion was invested into ETFs and ETPs providing exposure to US equity indices, reversing nearly all of the outflows during October. Overall, US$ 21.3 billion of net new money went into ETFs and ETPs in the month of November. Looking year to date through end of November 2012, ETFs and ETPs saw net inflows of US$223 billion, US$69 billion above the level of net new assets at this time last year.
Equity ETFs and ETPs have gathered the largest net inflows accounting for US$127 billion followed by fixed income ETFs and ETPs with US$61 billion and commodity ETFs and ETPs capturing US$22 billion.
We are likely to end 2012 with a record level of assets in ETFs and ETPs and with a record level of net new assets invested into the products during the year according to Deborah Fuhr, Managing Partner at ETFGI.
Equity focused ETFs and ETPs have gathered US$127 billion which is US$36 billion more than all of last year. Products providing exposure to North American equity indices have been the most popular receiving US$62 billion, followed by emerging market equity with US$38 billion and Asia Pacific equity with US$9.6 billion.
Source: ETFGI
ETF Securities-Outlook 2013: At a Global Macro Turning Point?
December 5, 2012--Increasing signs of improving global growth and continued strong central bank commitment to highly accommodative monetary policy indicates that the first part of next year has the potential to be a good one for cyclical and risky assets.
In this environment, commodities could perform well as an asset class, with more growth-sensitive commodities such as base metals and the white precious metals having the potential to perform most strongly. Within equities, basic resources and mining companies could outperform. Commodity currencies such as the Australian, New Zealand and Canadian dollars may rise in this environment and, barring a major sovereign debt-related accident, the Euro should benefit. Conversely, funding currencies such as the Japanese yen and the US dollar may come under pressure. The three key risks to this benign global scenario are a sharp rebound in sovereign risk in Europe - Greece and Spain in particular; the US fiscal cliff issue and possible US sovereign downgrade; and further political and military deterioration in the Middle East. Long gold, oil and volatility positions are potential hedges against these risks.
Source: ETF Securities
ETFGI Global ETF And ETP Industry Insights, November 2012
December 5, 2012--Summary for ETFs listed globally
At the end of November 2012, the global ETF industry had 3,336 ETFs, with 7,610 listings, assets of US$1,688 Bn, from 180 providers on 54 exchanges.
Assets
ETF assets have increased by 2.0% from US$1,655 Bn in October 2012 to US$1,688 Bn in November 2012.
YTD through end of November 2012, ETF assets have increased by 24.6% from US$1,355 Bn to US$1,688 Bn.
Flows
In November 2012, ETFs saw net inflows of US$19 Bn. YTD through end of November 2012, ETFs saw net inflows of US$201 Bn.
Vanguard gathered the largest net ETF inflows in November with US$7,738 Mn, followed by iShares with US$7,136 Mn and SPDR ETFs with US$4,683 Mn net inflows.
iShares gathered the largest net ETF inflows YTD with US$65,851 Mn, followed by Vanguard with US$54,009 Mn and SPDR ETFs with US$20,570 Mn net inflows. Harvest FM experienced the largest net ETF outflows in November with US$3,738 Mn, followed by DB/x-trackers with US$521 Mn and Nikko AM with US$319 Mn net outflows.
Commerzbank experienced the largest net ETF outflows YTD with US$1,454 Mn, followed by Direxion with US$887 Mn and EasyETF with US$831 Mn net outflows.
Summary for ETFs and ETPs listed globally
Including other Exchange Traded Products (ETPs), at the end of November 2012, the global ETF/ETP industry had 4,726 ETFs/ETPs, with 9,719 listings, assets of US$1,890 Bn, from 208 providers on 56 exchanges.
Assets
ETF/ETP assets have increased by 2.0% from US$1,853 Bn in October 2012 to US$1,890 Bn in November 2012.
YTD through end of November 2012, ETF/ETP assets have increased by 23.8% from US$1,526 Bn to US$1,890 Bn.
Flows
In November 2012, ETFs/ETPs saw net inflows of US$21 Bn. YTD through end of November 2012, ETFs/ETPs saw net inflows of US$223 Bn.
Vanguard gathered the largest net ETF/ETP inflows in November with US$7,738 Mn, followed by iShares with US$7,215 Mn and SPDR ETFs with US$5,402 Mn net inflows.
iShares gathered the largest net ETF/ETP inflows YTD with US$68,389 Mn, followed by Vanguard with US$54,009 Mn and SPDR ETFs with US$26,184 Mn net inflows.
Harvest FM experienced the largest net ETF/ETP outflows in November with US$3,738 Mn, followed by DB/x-trackers with US$682 Mn and Nikko AM with US$319 Mn net outflows.
Commerzbank experienced the largest net ETF/ETP outflows YTD with US$1,454 Mn, followed by Direxion with US$887 Mn and EasyETF with US$831 Mn net outflows.
Summary for United States ETFs and ETPs
At the end of November 2012, the US ETF industry had 1,157 ETFs, assets of US$1,175 Bn, from 35 providers on 3 exchanges. Including other Exchange Traded Products (ETPs), at the end of November 2012, the US ETF/ETP industry had 1,445 ETFs/ETPs, with assets of US$1,316 Bn, from 53 providers on 3 exchanges.
Summary for European listed ETFs and ETPs
At the end of November 2012, the European ETF industry had 1,331 ETFs, with 4,877 listings, assets of US$318 Bn, from 40 providers on 22 exchanges. Including other Exchange Traded Products (ETPs), at the end of November 2012, the European ETF/ETP industry had 1,934 ETFs/ETPs, with 6,113 listings, assets of US$359 Bn, from 45 providers on 23 exchanges.
Summary for Asia Pacific (ex-Japan) listed ETFs and ETPs
At the end of November 2012, the Asia Pacific (ex-Japan) ETF industry had 409 ETFs, with 528 listings, assets of US$78 Bn, from 92 providers on 14 exchanges. Including other Exchange Traded Products (ETPs), at the end of November 2012, the Asia Pacific (ex-Japan) ETF/ETP industry had 428 ETFs/ETPs, with 550 listings, assets of US$79 Bn, from 93 providers on 14 exchanges.
Summary for Japanese listed ETFs and ETPs
At the end of November 2012, the Japanese ETF industry had 97 ETFs, with 101 listings, assets of US$46 Bn, from 11 providers on 3 exchanges. Including other Exchange Traded Products (ETPs), at the end of November 2012, the Japanese ETF/ETP industry had 106 ETFs/ETPs, with 140 listings, assets of US$47 Bn, from 15 providers on 3 exchanges.
Summary for Canadian listed ETFs and ETPs
At the end of November 2012, the Canadian ETF industry had 264 ETFs, with 352 listings, assets of US$55 Bn, from 7 providers on 1 exchange. Including other Exchange Traded Products (ETPs), at the end of November 2012, the Canadian ETF/ETP industry had 267 ETFs/ETPs, with 379 listings, assets of US$55 Bn, from 9 providers on 1 exchange.
Summary for Latin America listed ETFs and ETPs
At the end of November 2012, the Latin American ETF industry had 36 ETFs, with 549 listings, assets of US$12 Bn, from 17 providers on 5 exchanges. Including other Exchange Traded Products (ETPs), at the end of November 2012, the Latin American ETF/ETP industry had 36 ETFs/ETPs, with 578 listings, assets of US$12 Bn, from 20 providers on 5 exchanges.
Source: ETFGI
Dow Jones Islamic Market Titans 100 Index Finished Up 0.37% in November-Index Measures Performance of 100 of World's Leading Shari'ah-Compliant Stocks
Dow Jones Islamic Market Asia/Pacific Titans 25 Index, Dow Jones Islamic Market Europe Titans 25 Index End November in Positive Territory-Dow Jones Islamic Market U.S. Titans 50 Index Lose 0.43%
December 5, 2012--The Dow Jones Islamic Market Titans 100 Index finished November up 0.37%, according to data compiled by S&P Dow Jones Indices. The index measures the performance of 100 of the world's leading Shari'ah-compliant stocks.
The Dow Jones Global Titans 50 Index, which measures the world’s 50 largest companies, posted a November gain of 0.07%.
Regionally, the Dow Jones Islamic Market Asia/Pacific Titans 25 Index, which measures the performance of 25 of the leading Shari’ah-compliant stocks in the Asia/Pacific region, advanced 3.58% in November; the Dow Jones Asian Titans 50 Index increased 3.06%.
In Europe, the Dow Jones Islamic Market Europe Titans 25 Index, which measures the performance of the 25 the leading Shari’ah-compliant stocks in Europe, rose 1.14% in November; the Dow Jones Europe Titans 80 Index, which measures the performance of 80 blue-chip stocks traded in the developed markets of Europe, increased 2.07%.
Source: Mondovisione
ETP flows swing in favour of equities
December 5, 2012--Investors in exchange-traded products shifted their focus from fixed income to equities in November, according to new research, mirroring a trend in the wider investment market.
Equity exchange-traded funds and ETPs attracted $13.23bn last month, while fixed-income products drew in $5.1bn, figures from consultancy ETFGI show.
Source: Financial News
IMF Working paper-Fiscal Multipliers and the State of the Economy
December 5, 2012--Summary: Only a few empirical studies have analyzed the relationship between fiscal multipliers and the underlying state of the economy. This paper investigates this link on a country-by-country basis for the G7 economies (excluding Italy).
Our results show that fiscal multipliers differ across countries, calling for a tailored use of fiscal policy. Moreover, the position in the business cycle affects the impact of fiscal policy on output: on average, government spending, and revenue multipliers tend to be larger in downturns than in expansions. This asymmetry has implications for the choice between an upfront fiscal adjustment versus a more gradual approach.
view the IMF Working paper-Fiscal Multipliers and the State of the Economy
Source: IMF
