Global ETF News Older than One Year
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
OECD Create Your Better Life Index
November 8, 2012--The Better Life Index allows citizens to compare well-being across 36 countries based on 11 dimensions in the areas of material living conditions and quality of life.
The updated version integrates data on gender and inequality and strengthens existing topics.
Source: OECD
Dow Jones-UBS Commodity Indices October 2012 Performance Report
November 8, 2012--The Dow Jones-UBS Commodity Index was down 3.88% for the month of October. The Dow Jones-UBS Single Commodity Indices for lean hogs, natural gas and live cattle had the strongest gains with month-end returns of 6.14%, 2.06% and 0.98%, respectively.
The three most significant downside performing single commodity indices were nickel, zinc and coffee, which ended the month down 12.51%, 11.67%, and 10.86% respectively.
Source: Money Science
FOCUS: Gold ETF Popularity Rebounds; Focus Turns To Costs
November 8, 2012--After a quiet summer, interest in gold exchange-traded funds has picked up, with inflows continuing even as gold failed to break above $1,800 an ounce.
With the ultra-loose monetary policy from the global central banks and the Federal Reserve promising monetary stimulus until the jobs picture in the U.S. improves, investors have been returning to the gold ETFs. In October, gold ETF inflows reached 43.8 metric tons, according to Anne-Laure, precious metals strategist at BNP Paribas, with the biggest of the ETFs, the SPDR Gold Shares ETF (NYSE: GLD), capturing 15.5 tons.
Source: Forbes
Dow Jones Islamic Market Titans 100 Index Finished Down 2.27% in October
November 7, 2012--The Dow Jones Islamic Market Titans 100 Index finished October down 2.27%, 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 an October loss of 2.31%.
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, decreased 0.49% in October; the Dow Jones Asian Titans 50 Index decreased 0.14%.
Source: Global Finance Magazine
MSCI profit falls as subscription renewals decline
Q3 adj EPS $0.49 vs est $0.51
Operating revenue up 5 pct, operating expense up 6 pct
Subscription revenue up 8 pct
Shares down 6 percent
November 6, 2012-- Market index provider MSCI Inc's third-quarter profit fell more than expected as fewer customers renewed subscriptions and the company both hired more staff and paid more in severance.
MSCI, which lost a big chunk of its business last month with the defection of some Vanguard Group index funds, said new recurring subscription sales fell 14 percent to $27.1 million.
"The company's business is challenged in the near term because they mainly sell to asset managers and asset owners who are facing a challenging environment and market," said Christopher Shutler, an analyst with William Blair & Co.
Source: Reuters
AFM and FINRA Sign MoU on Financial Market Surveillance and Supervision
November 6, 2012-- In October 2012, Richard G. Ketchum, Chairman and CEO of the Financial Industry Regulatory Authority (FINRA) and Ronald Gerritse, Chairman of the Executive Board of the Netherlands Authority for the Financial Markets (AFM) signed a memorandum of understanding (MoU) on information-sharing with a view to strengthening and improving cooperation.
The memorandum establishes a formal basis for cooperation among FINRA and the AFM to more effectively conduct their oversight of regulated markets and financial firms.
Commenting, Ronald Gerritse said, "The AFM supervises the honest and efficient operation of the capital markets. Targeting possible market abuse is one of our main objectives. I consider the signing of this MoU as an important initiative to strengthen our supervisory cooperation, which is important for effective international oversight."
Source: FINRA
ETF Securities-Precious Metals Weekly -Using Gold to Hedge US "Fiscal Cliff" Risk
November 5, 2012--Gold as a hedge against a worst case "fiscal cliff" scenarios
One of the key concerns of investors today is the potential of a severe blow to risk assets if the US "fiscal cliff" is not dealt with responsibly by the US Congress by the end of the year.
If they don't, there is a high risk that the US economy will be driven into recession and will see its sovereign credit rating downgraded again. This concern is likely one of the main reasons risk assets have not performed better despite the announcement by the Fed of an open-ended QE3 in September and improving US and China data in recent weeks. As we show below, being long gold is potentially one of the best hedges against a worst case scenario in the US. During the last Congressional stand-off on the budget ceiling in the summer of 2011 (and resulting US sovereign downgrade), the gold price rallied nearly 30%.
With the US Presidential election this week there have been no signs that Republicans and Democrats are in a frame of mind to make the compromises necessary to resolve budgetary issues. If this situation continues after the election and investor concerns about a possible US downgrade escalates, gold will likely be a beneficiary. But the factor that will likely have the strongest positive impact on the gold price is Spain (or even Italy) asking for a bailout, permitting the Euro to rally, the dollar weaken and general risk appetite to improve. In the meantime, investors that want to hedge against worst case US fiscal cliff scenarios will likely continue to build long gold positions.
Rising China demand improves outlook for "industrial" precious metals Silver rose to a 2-week high of $32.5/oz last week on signs of improving demand from China. The state Chinese research institute, Antaike anticipates silver demand in China will rise by 10% in 2013 to a record high of 7,700 tons mainly due to growing investment demand. Last week China' manufacturing PMI rose to a 4-month high, breaching the 50 point expansionary level. Increasing signs the industrial cycle in China has bottomed out, together with improving US data, bodes well for the more industrial precious metals such as silver, platinum and palladium. But for a full-blown cyclical rally, the fiscal cliff and Spain bailout issues likely need to be resolved.
Key events to watch this week: US Presidential elections and the 18th Chinese Party Congress. While there is no consistent relationship between political affiliation of the US President and the performance of precious metals, the size of the electoral win will help determine the president's ability to push for a budget compromise. The new leadership of China that emerges from the 18th Chinese Party Congress will be closely examined for its support of current expansionary macro policies and its external political/military stance.
Visit www.etfsecurities.com for more info.
Source: ETF Securities
