Global ETF News Older than One Year
Index switch hits Vanguard
November 11, 2012--Inflows into Vanguard's largest exchange traded fund have evaporated in the wake of its decision at the beginning of October to switch from tracking an MSCI index to a cheaper FTSE benchmark.
The Vanguard MSCI Emerging Markets ETF attracted $1m in net inflows in October, compared with average monthly inflows of $1.3bn between January and September, says the ETF Industry Association.
Source: FT.com
EPFR Global Fund Data Release-Bond Funds move deeper into record setting territory as fiscal cliff looms
November 9, 2012--While US President Barack Obama was promising that "the best is yet to come" in the wake of his re-election victory on November 6 investors were acting as if the worst is far from over.
Flows into EPFR Global-tracked Bond and Money Market Funds hit a record high during the week ending Nov. 7 while Volatility Funds recorded their biggest inflow since the third week of August as investors focused on so-called fiscal cliff facing US policymakers and the Eurozone’s continuing struggle to resolve its four-year-old debt crisis.
Overall, investors steered over $50 billion into Money Market Funds and nearly $10 billion into Bond Funds, pushing the latter’s year-to-date total over the $400 billion mark. Equity Funds took in a net $1.12 billion with Dividend Equity Funds taking in over $900 million despite the implications that Obama’s victory has for their taxation in the US.
Visit http://www.epfr.com/overview.aspx for more info
Source: EPFR
Ex BlackRock chief joins Barclays for sweeping asset management review
November 9, 2012--Rory Tobin, former head of iShares International, has joined Barclays' wealth and investment division to review its asset management capabilities across the business.
In his new role, Wealth Manager understands that Tobin will work with David Semaya to identify pockets of asset management expertise in Barclays and determine whether to combine them or sell them off.
The project comes as part of a wider review of the Barclays business model, spearheaded by the bank’s new chief executive Antony Jenkins (pictured), to help restore the firm’s reputation following the Libor scandal.
Source: CityWire
BATS 1000 Index Tumbles 2.4% This Week
November 9, 2012--BATS Global Markets, a leading operator of securities markets in the U.S. and Europe, reports the BATS 1000® Index (Ticker:Ticker::BATSK) fell 380.66 points, or 2.4%, this week to close at 15,505.16 as of 4 p.m. ET today.
Ten of ten sectors that comprise the index fell for the week, with Utilities and Financials suffering the steepest declines. Industrials and Manufacturing fell the least.
Source: BATS Global Markets, Inc.
Improving the BIS international banking statistics
November 9, 2012--Abstract
This report documents a series of enhancements of the BIS international banking statistics (IBS) that have recently been endorsed by the Committee on the Global Financial System (CGFS) and are designed to make significant and long-lasting improvements to the IBS.
The report provides a short introduction to the IBS and their main uses and discusses the nature and rationale of the forthcoming changes, which have been developed by a group of statistical experts and economists chaired by Werner Hermann (Swiss National Bank). The enhancements will provide a more comprehensive picture of national banking systems' global consolidated balance sheets, allow for a more detailed analysis of vis-à-vis country information, and help to better track banks' funding patterns and associated risks. They will also make national contributions to the IBS more complete and accessible
Source: BIS
ETFGI Global ETF And ETP Industry Insights, October 2012
November 9, 2012--According to ETFGI US$13.5 billion of net new assets (NNA) flowed into global Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) in October which is lower than the US$40 billion of net inflows in September 2012. Investors and investments suffered from growing uncertainty in October over the likely outcome of the US presidential election, the impact of the fiscal cliff in the US, the likely impact of superstorm Sandy and the on-going debt concerns in the Eurozone.
US listed ETFs and ETPs which traditionally account for the majority of NNA saw these uncertainties dampen the inflows into ETFs and ETPs listed in the US to just US$2.7 billion or 20% of NNA in October. Globally, ETFs and ETPs providing exposure to North America equities also suffered from these concerns as investors withdrew net outflows of US$10.1 billion.
As the majority of concerns and uncertainties focused on the US, and investments in the US, it did not negatively impact NNA flows in all regions around the world. We saw robust flows into ETFs and ETPs listed in both Europe, which accounted for US$4.6 billion or 34% of total NNA, and in Asia Pacific (ex Japan) which amassed US$4.5 billion or 33.7% of the total. Products listed in Japan, Canada, Middle East and Africa and Latin America accounting for US$1.7 billion.
“The source and composition of the fund flows in October shows that ETFs and ETPs are a product set that are increasingly being embraced by investors around the world and are a very good indicator of how investors are tactically and strategically adjusting their allocations to political, economic and other uncertainties that are impacting the markets” according to Deborah Fuhr, Managing Partner at ETFGI.
At the end of October 2012, the global ETF and ETP industry had 4,694 ETFs and ETPs, with 9,646 listings, assets of US$1.85 trillion, from 203 providers on 56 exchanges. Year-to-date global ETFs and ETPs have gathered US$201.7 billion of net new assets.
Year-to-date through the end of October, equity ETFs and ETPs have gathered the largest net inflows accounting for US$114 billion, followed by fixed income ETFs and ETPs with US$57 billion and commodity ETFs and ETPs capturing US$20 billion.
Equity focused ETFs and ETPs have gathered US$3.2 billion in October and US$114 billion YTD, which is US$23 billion more than the NNA flows they received in all of 2011. In October investors withdrew US$10.1 billion from ETFs and ETPs providing exposure to North American equity indices and invested US$8.8 billion into ETFs and ETPs providing exposure to emerging market equity indices.
Fixed Income ETFs and ETPs received net inflows of US$6.1 billion in October and US$57 billion year to date, which is US$21 billion more than the total net new assets they received in the same period last year. Within fixed income, corporate bond products have gathered the largest net inflows in October with US$3.4 billion, followed by emerging market products with US$1.9 billion.
Commodity products received NNA inflows of US$3.3 billion in October and US$20 billion year to date which is US$5 billion more than full year 2011 NNAs. Precious metals gathered US$2.4 billion in October and US$17.6 billion year to date, followed by broad commodity exposure with US$2.5 billion and US$1.1 billion in energy exposure.
Reviewing the NNA flows for the top 3 ETF and ETP providers globally in October, iShares accumulated US$10.9 billion in NNA and US$61.2 billion year to date which is in excess of their 2011 total of US$53.7 billion. Vanguard was second in the NNA race in October and year to date winning US$3.4 billion and US$46.3 billion respectively. Vanguard’s YTD NNA total of US$46.3 billion is US$10 billion above their full year 2011 NNA total of US$36 billion. SPDR ETFs suffered US$8.4 billion in NNA outflows in October but is still doing well on a year to date basis where they have taken in US$20.8 billion which is nearly the same amount they took in during all of 2011.
Source: ETFGI
Investor caution over US restricts inflows of assets into ETFs
November 9, 2012--Global exchange traded funds and exchange traded products saw net new asset inflows of $13.5bn in October, according to ETFGI, a consultancy established by sector expert Deborah Fuhr. In September 2012, the sector registered net inflows of $40bn.
“Investors and investments suffered from growing uncertainty in October over the likely outcome of the US presidential election, the impact of the fiscal cliff in the US, the likely impact of superstorm Sandy and the on-going debt concerns in the Eurozone,” ETFGI said.
Source: Investment Europe
OECD-Balance of economic power will shift dramatically over the next 50 years, says OECD
November 9, 2012--The balance of economic power is expected to shift dramatically over the next half century, with fast-growing emerging-market economies accounting for an ever-increasing share of global output, according to a new OECD report.
Divergent long-term growth patterns lead to radical shifts in the relative size of economies. The United States is expected to cede its place as the world's largest economy to China, as early as 2016. India’s GDP is also expected to pass that of the United States over the long term. Combined, the two Asian giants will soon surpass the collective economy of the G7 nations. Fast-ageing economic heavyweights, such as Japan and the euro area, will gradually lose ground on the global GDP table to countries with a younger population,
view the OECD report-Looking to 2060: Long-term global growth prospects
Source: OECD
ETFGI Global ETF and ETP industry insights, October 2012
November 9, 2012--Summary for ETFs listed globally
At the end of October 2012, the global ETF industry had 3,313 ETFs, with 7,546 listings, assets of US$1,655 Bn, from 176 providers on 54 exchanges.
Assets
ETF assets have decreased by 0.03% from US$1,655.1 Bn in September 2012 to US$1,654.6 Bn in October 2012.
YTD through end of October 2012, ETF assets have increased by 22.1% from US$1,355 Bn to US$1,655 Bn.
Flows
In October 2012, ETFs saw net inflows of US$11 Bn. YTD through end of October 2012, ETFs saw net inflows of US$182 Bn.
iShares gathered the largest net ETF inflows in October with US$10,470 Mn, followed by Vanguard with US$3,381 Mn and Harvest Fund Management with US$2,561 Mn net inflows.
iShares gathered the largest net ETF inflows YTD with US$58,737 Mn, followed by Vanguard with US$46,251 Mn and SPDR ETFs with US$15,867 Mn net inflows.
SPDR ETFs experienced the largest net ETF outflows in October with US$9,349 Mn, followed by PowerShares with US$1,234 Mn and Bank of New York with US$773 Mn net outflows.
Commerzbank experienced the largest net ETF outflows YTD with US$1,532 Mn, followed by Direxion Shares with US$933 Mn and EasyETF with US$802 Mn net outflows.
Summary for ETFs and ETPs listed globally
Including other Exchange Traded Products (ETPs), at the end of October 2012, the global ETF/ETP industry had 4,694 ETFs/ETPs, with 9,646 listings, assets of US$1,852 Bn, from 203 providers on 56 exchanges.
Assets
ETF/ETP assets have decreased by 0.2% from US$1,856 Bn in September 2012 to US$1,852 Bn in October 2012.
YTD through end of October 2012, ETF/ETP assets have increased by 21.4% from US$1,526 Bn to US$1,852 Bn.
Flows
In October 2012, ETFs/ETPs saw net inflows of US$13.5 Bn. YTD through end of October 2012, ETFs/ETPs saw net inflows of US$202 Bn.
iShares gathered the largest net ETF/ETP inflows in October with US$10,935 Mn, followed by Vanguard with US$3,381 Mn and Harvest Fund Management with US$2,561 Mn net inflows.
iShares gathered the largest net ETF/ETP inflows YTD with US$61,196 Mn, followed by Vanguard with US$46,251 Mn and SPDR ETFs with US$20,763 Mn net inflows.
SPDR ETFs experienced the largest net ETF/ETP outflows in October with US$8,427 Mn, followed by PowerShares with US$1,234 Mn and Bank of New York with US$773 Mn net outflows.
Commerzbank experienced the largest net ETF/ETP outflows YTD with US$1,532 Mn, followed by Direxion Shares with US$933 Mn and EasyETF with US$802 Mn net outflows.
Summary for United States ETFs and ETPs
At the end of October 2012, the US ETF industry had 1,156 ETFs, assets of US$1,149 Bn, from 33 providers on 3 exchanges. Including other Exchange Traded Products (ETPs), at the end of October 2012, the US ETF/ETP industry had 1,439 ETFs/ETPs, assets of US$1,289 Bn, from 51 providers on 3 exchanges.
Summary for European listed ETFs and ETPs
At the end of October 2012, the European ETF industry had 1,326 ETFs, with 4,841 listings, assets of US$313 Bn, from 40 providers on 22 exchanges. Including other Exchange Traded Products (ETPs), at the end of October 2012, the European ETF/ETP industry had 1,928 ETFs/ETPs, with 6,076 listings, assets of US$353 Bn, from 45 providers on 23 exchanges.
Summary for Asia Pacific (ex-Japan) listed ETFs and ETPs
At the end of October 2012, the Asia Pacific (ex-Japan) ETF industry had 402 ETFs, with 519 listings, assets of US$77 Bn, from 90 providers on 14 exchanges. Including other Exchange Traded Products (ETPs), at the end of October 2012, the Asia Pacific (ex-Japan) ETF/ETP industry had 421 ETFs/ETPs, with 541 listings, assets of US$77 Bn, from 92 providers on 14 exchanges.
Summary for Japanese listed ETFs and ETPs
At the end of October 2012, the Japanese ETF industry had 97 ETFs, with 101 listings, assets of US$45 Bn, from 11 providers on 3 exchanges. Including other Exchange Traded Products (ETPs), at the end of October 2012, the Japanese ETF/ETP industry had 106 ETFs/ETPs, with 140 listings, assets of US$46 Bn, from 15 providers on 3 exchanges.
Summary for Canadian listed ETFs and ETPs
At the end of October 2012, the Canadian ETF industry had 255 ETFs, with 341 listings, assets of US$54 Bn, from 7 providers. Including other Exchange Traded Products (ETPs), at the end of October 2012, the Canadian ETF/ETP industry had 258 ETFs/ETPs, with 368 listings, assets of US$54 Bn, from 9 providers.
Summary for Latin America listed ETFs and ETPs
At the end of October 2012, the Latin American ETF industry had 35 ETFs, with 542 listings, assets of US$11,170 Mn, from 16 providers on 5 exchanges. Including other Exchange Traded Products (ETPs), at the end of October 2012, the Latin American ETF/ETP industry had 35 ETFs/ETPs, with 571 listings, assets of US$11,170 Mn, from 19 providers on 5 exchanges.
Source: ETFGI
OECD-Transparency, trust and growth
November 8, 2012--Four years of financial turmoil, recession and weak growth have taken their toll on people's trust in public institutions and in government.
When governments face hard choices about where to spend scarce resources it is all the more important that their citizens believe they are making the best use of taxpayers’ money. When public spending is cut it affects services that ultimately are very personal whether they be education, health services or social safety nets for the poorest in society.
Everyone has an opinion if their local school, hospital or library is threatened with closure. And the millions without jobs need short-term help and longer-term hope that there will be work for them in the future. This crisis has affected millions of people in very personal ways – loss of job, loss of the family home due to inability to meet mortgage payments or a slide into poverty.
Confidence is key to building trust – not just business confidence, which has for many years been seen as a key indicator of where the economy is heading – but also confidence by individuals in their government and systems.
Source: OECD
