Global ETF News Older than One Year
BlackRock * New Report * ETF Landscape: Industry Highlights - Year End 2010
January 12, 2012--Key points from the highlights, as at year end 2010, are as follows:
United States ETF and ETP Industry
The United States ETF industry had 896 ETFs and assets of US$891.0 Bn, from 28 providers on two exchanges. This compares to 772 ETFs and assets of US$705.5 Bn, from 29 providers on two exchanges, at year end 2009.
US$19.0 Bn of net new assets went into United States listed ETFs/ETPs in December 2010. US$18.7 Bn net inflows went into equity ETFs/ETPs, of which US$16.0 Bn went into ETFs/ETPs tracking North American indices and US$0.8 Bn into ETFs/ETPs tracking international indices. Fixed income ETFs/ETPs saw net outflows of US$1.7 Bn, where corporate bond ETFs/ETPs saw net outflows of US$0.9 Bn and aggregate fixed income ETFs/ETPs saw net outflows of US$0.9 Bn. Commodity ETFs/ETPs experienced US$1.9 Bn net inflows, of which precious metals ETFs/ETPs saw net inflows of US$1.0 Bn and US$0.5 Bn went into agricultural commodity ETFs/ETPs in December 2010.
Of the US$17.7 Bn of net new assets in United States listed ETFs in December 2010, State Street Global Advisors gathered the largest net inflows with US$10.9 Bn, followed by iShares with US$3.9 Bn net inflows, while PowerShares saw US$1.0 Bn net outflows in December 2010.
Global ETF and ETP Industry
The industry grew on all major dimensions during 2010 and we expect this to continue in 2011. With products and assets both growing by 26.6%, the global ETF industry had 2,459 ETFs with 5,554 listings and assets of US$1,311.3 Bn, from 136 providers on 46 exchanges around the world, at year end 2010. This is up significantly on 2009's year end of 1,943 ETFs with 3,827 listings and assets of US$1,036.1 Bn, from 108 providers on 41 exchanges.
The global ETF and ETP industry combined had 3,503 products with 7,311 listings and assets of US$1,482.0 Bn, from 168 providers on 50 exchanges around the world. This compares to 2,672 products with 4,856 listings, assets of US$1,155.8 Bn from 132 providers on 45 exchanges at year end 2009.
European ETF and ETP Industry
The European ETF industry had 1,071 ETFs with 3,699 listings and assets of US$284.0 Bn, from 39 providers on 22 exchanges. This compares to 827 ETFs with 2,438 listings and assets of US$226.9 Bn, from 34 providers and 19 exchanges, at year end 2009.
US$4.9 Bn of net new assets went into European listed ETFs/ETPs in December 2010. US$3.8 Bn net inflows went into equity ETFs/ETPs, of which US$1.5 Bn went into ETFs/ETPs tracking emerging market indices and US$1.4 Bn into ETFs/ETPs tracking European indices. Fixed income ETFs/ETPs saw net outflows of US$0.1 Bn, of which corporate bond ETFs/ETPs saw net outflows of US$0.4 Bn, while US$0.3 Bn went into government bond ETFs/ETPs. Commodity ETFs/ETPs saw net inflows of US$1.1 Bn, of which US$0.6 Bn went into precious metals exposure and US$0.4 Bn into broad commodity exposure.
Of the US$4.5 Bn of net new assets in European listed ETFs in December 2010, Lyxor Asset Management gathered the largest net inflows with US$1.8 Bn, followed by iShares with US$1.3 Bn net inflows, while Source Markets had the largest net outflows with US$0.7 Bn.
Asia Pacific (ex-Japan) ETF and ETP Industry
The Asia Pacific (ex-Japan) ETF industry had 200 ETFs with 307 listings and assets of US$53.3 Bn, from 59 providers on 13 exchanges.
Japan ETF and ETP Industry
The Japanese ETF Industry had 80 ETFs with 83 listings and assets of US$32.2 Bn, from seven providers on two exchanges.
Latin America ETF and ETP Industry
The Latin American ETF industry had 26 ETFs with 355 listings and assets of US$10.1 Bn, from four providers on three exchanges.
Canada ETF and ETP Industry
The Canadian ETF industry had 157 ETFs and assets of US$38.4 Bn, from four providers on one exchange.
Source: Global ETF Research & Implementation Strategy Team, BlackRock
Global Economic Prospects 2011 Navigating Strong Currents
January 12, 2011----Economic activity in most developing countries has or is close to having recovered. Supported by a resurgence of international and domestic financial flows and higher commodity prices, most of the economy-wide spare capacity created by the crisis has been reabsorbed, and as a result demand stimulus is being retracted.
Overview and main messages
Economic activity in most developing countries has, or is close to having, recovered. Supported by a resurgence in international and domestic financial flows and higher commodity prices, most of the spare capacity in developing countries that was created by the crisis has been reabsorbed, and developing countries have regained trend growth rates close to those observed in the pre-crisis period.
In contrast, the recovery in many high-income countries (and several economies in developing Europe and Central Asia) has not been strong enough to make major inroads into high unemployment and spare capacity. Prospects in these economies, many of which were at the center of the financial boom and bust, continue to be weighed down by banking-sector restructuring, high consumer debt and a right-sizing of economic sectors that grew unsustainably large during the boom period.
view full report-Global Economic Prospects 2011 Navigating Strong Currents
Source: World Bank
Developing Countries Are Driving Global Growth, but Risks Remain
January 12, 2011-Led by developing countries, the world economy is moving on from a post-crisis bounce-back phase of recovery to slower but still solid growth this year and next
Developing countries face three main short-term risks—tensions in financial markets, large and volatile capital flows, and a rise in high food prices
For the longer-term, countries need to shift focus from short-term crisis management toward measures that address underlying structural challenges
The world economy is moving on from a post-crisis bounce-back phase of recovery to slower but still solid growth this year and next. Global GDP, which expanded by 3.9% in 2010, is expected to slow to 3.3% in 2011, according to the World Bank’s Global Economic Prospects 2011.
Most of the developing world has weathered the financial crisis well, and, by the end of 2010, many emerging market economies had recovered or were close to resuming the growth potential they had attained prior to the crisis.
"On the upside, strong developing-country domestic demand growth is leading the world economy, yet persistent financial sector problems in some high-income countries are still a threat to growth and require urgent policy actions," said Justin Yifu Lin, the World Bank’s chief economist and senior vice president for development economics.
Source: World Bank
Dow Jones Index Data Monthly Reports
January 12, 2011---The following Dow Jones Index Data Monthly Reports for OCtober 2010 are now available.
Index Data Monthly Report: U.S. Edition
Index Data Monthly Report: Dow Jones-UBS Commodity Indexes
Index Data Monthly Report: Europe Edition
Index Data Monthly Report: Latin America Edition
Index Data Monthly Report: Dow Jones Brookfield Infrastructure Indexes
Source: Dow Jones Indexes
Capital markets must absorb longevity risk, insurers say
January 12, 2011--Capital markets will have to help governments and the insurance industry absorb some longevity risk, insurers have said.
They said the most likely solution to dealing with the massive increase in public debt due to age-related liabilities was that people would have to work longer
Source: IP&E
Markit Buys Risk Analytics Firm QuIC
January 12, 2011-- Markit, a leading, global financial information services company, today announced that it has acquired QuIC Financial Technologies, Inc (QuIC). QuIC provides the world’s leading financial organisations with risk analytics solutions to test market and credit risk tolerance in financial portfolios and simulate risk at the enterprise level.
The acquisition will enable Markit to meet the growing demand for risk analytics and enterprise risk management services by combining its strengths in data and valuations with QuIC’s analytics expertise. Markit and QuIC’s integrated platform will be well-positioned to offer a comprehensive solution for risk-related services spanning independent pricing, valuations and analytics across asset classes.
QuIC will become part of Markit’s valuations and analytics services unit, and will continue to provide all of its existing high-quality services to clients throughout the financial industry. Markit’s rich data set, which spans all major asset classes in the cash and over-the-counter derivative markets - including credit default swaps, bonds, loans, equities, commodities and rates - will become a valuable input into the QuIC Engine™, the high speed computational framework that powers QuIC’s solutions.
Source: Markit
Contributions to GDP growth – Third quarter of 2010
Investment slowdown weakens OECD GDP growth in the third quarter of 2010
January 12, 2011--Real GDP in the OECD area grew by 0.6% in the third quarter of 2010, down from the 0.9% of the previous quarter. Capital formation contributed 0.2 percentage point to overall growth, down from the 0.5 percentage point recorded in the second quarter.
Private consumption was the main contributor, adding 0.4 percentage point to overall growth; while stockbuilding contributed 0.3 percentage point. For the third consecutive quarter, net exports dragged down GDP growth (by 0.3 percentage point in the third quarter of 2010).
Source: OECD
Gold Must Exceed $2,000 to Be Considered in a Bubble, Deutsche Bank Says
January 11, 2011--Gold would have to exceed $2,000 an ounce to be considered in a bubble, and the metal will gain this year on investment in exchange-traded funds and central-bank buying, Deutsche Bank AG said.
Gold will “perform strongly” on investor demand and low real interest rates in the U.S., Michael Lewis, London-based head of commodities research at Deutsche Bank, said in a report today. A bubble may form because investors are buying gold as a hedge against both inflation and deflation, he said.
Source: Bloomberg
The global financial crisis has accelerated the shift in economic power to emerging economies.
January 11, 2011--In the latest in the series of PwC’s ‘World in 2050’ reports, analysis reveals that the E7 emerging economies (China, India, Brazil, Russia, Mexico, Indonesia and Turkey) are set to overtake the G7 economies (US, Japan, Germany, UK, France, Italy and Canada) before 2020.
view the World in 2050 The accelerating shift of global economic power: challenges and opportunities
The world in 2050:Can rapid global growth be reconciled with moving to a low-carbon economy?
view the Beyond the BRICs: A broader look at emerging market growth prospects
view the How big will the major emerging market economies get and how can the OECD compete? report
Source: PricewaterhouseCoopers LLP
Capital Flows, Exchange Rate Flexibility, and the Real Exchange Rate IMF Working paper
January 10, 2011--This paper analyzes the impact of capital inflows and exchange rate flexibility on the real exchange rate in developing countries based on panel cointegration techniques. The results show that public and private flows are associated with a real exchange rate appreciation.
Among private flows, portfolio investment has the highest appreciation effect-almost seven times that of foreign direct investment or bank loans-and private transfers have the lowest effect. Using a de facto measure of exchange rate flexibility, we find that a more flexible exchange rate helps to dampen appreciation of the real exchange rate stemming from capital inflows.
view the Capital Flows, Exchange Rate Flexibility, and the Real Exchange Rate
Source: IMF
