Global ETF News Older than One Year
ETF Landscape: Industry Highlights - Data as at End January 2010
February 18, 2010--Highlights
Global ETF and ETP Industry January 2010:
• At the end of January 2010 the global ETF industry had 2,053 ETFs with 3,928 listings, assets of US$984.0 Bn, from 113 providers on 40 exchanges around the world.
Assets
• YTD assets have fallen by 5.0% which is more than the 4.2% fall in the MSCI World Index in US dollar terms.
ETFs
• YTD the number of ETFs increased by 5.4% with 106 new ETFs launched.
• The number of ETFs listed in Europe has surpassed the US, with 896 ETFs listed in Europe, compared to 791 in the US.
• There are currently plans to launch 820 new ETFs.
Trading volume
• YTD the average daily trading volume in US dollars increased by 40.6% to US$70.7 Bn or 3.3 Bn shares.
ETF providers
• Globally, iShares is the largest ETF provider in terms of both number of products, 434 ETFs, and assets of US$470.0 Bn, reflecting 47.8% market share; State Street Global Advisors is second with 107 products and US$139.1 Bn, 14.1% market share; followed by Vanguard with 47 products and assets of US$92.2 Bn and 9.4% market share at the end of January 2010.
ETFs & ETPs
• Combined, there were 2,673 products with 4,839 listings, assets of US$1,132.7 Bn from 137 providers on 43 exchanges around the world.
European ETF and ETP Industry January 2010:
At the end of January 2010 the European ETF industry had 896 ETFs with 2,468 listings, assets of US$217.9 Bn, from 34 providers on 18 exchanges.
Assets
• YTD assets have fallen by 4.0%, which is less than the 5.9% fall in the MSCI Europe Index in US dollar terms.
ETFs
• YTD the number of ETFs increased by 8.1% with 67 new ETFs launched.
• 11 April 2010 will mark the tenth anniversary of ETFs in Europe.
Trading volume
• YTD the average daily trading volume in US dollars increased by 24.5% to US$2.8 Bn. Most ETF trades are not required to be reported in Europe as ETFs are not covered by the European Union directive on markets in financial instruments (MiFID).
ETF providers
• iShares is the largest ETF provider in terms of both number of products, 172 ETFs, and assets of US$82.5 Bn, reflecting 37.9% market share; Lyxor Asset Management is second with 127 products and US$43.8 Bn, 20.1% market share; followed by db x-trackers with 118 ETFs and assets of US$35.8 Bn and 16.4% market share at the end of January 2010.
ETFs & ETPs
• Combined, there were 1,072 products with assets of US$233.1 Bn from 36 providers on 18 exchanges in Europe.
United States ETF and ETP Industry January 2010:
At the end of January 2010 the US ETF industry had 791 ETFs, assets of US$665.4 Bn, from 28 providers on two exchanges.
Assets
• YTD assets have fallen by 5.7%, which is more than the 3.6% fall in the MSCI US index in US dollar terms.
ETFs
• YTD the number of ETFs increased by 2.5% with 19 new ETFs launched.
• 29 January 2010 marked the 17th anniversary of ETFs in the US.
Trading volume
• YTD the average daily trading volume in US dollars has increased by 43.2% to US$65.6 Bn.
ETF providers
• iShares is the largest ETF provider in terms of both number of products, 197 ETFs, and assets of US$349.5 Bn, reflecting 52.5% market share; State Street Global Advisors is second with 88 products and US$128.2 Bn, a 19.3% market share; followed by Vanguard with 46 products, assets of US$92.2 Bn and 13.8% market share at the end of January 2010.
ETFs & ETPs
• Combined, there were 935 products with assets of US$750.1 Bn from 41 providers on two exchanges in the US.
Canada ETF and ETP Industry January 2010:
At the end of January 2010 the Canadian ETF industry had 125 ETFs, assets of US$28.4 Bn, from four providers on one exchange.
Assets
• YTD assets have fallen by 0.5%, which is less than the 7.8% fall in the MSCI Canada Index in US dollar terms.
ETFs
• YTD the number of ETFs increased by 14.7% with 16 new ETFs launched.
Trading volume
• YTD the average daily trading volume in US dollars has increased by 1.6% to US$0.97 Bn.
ETF providers
• iShares is the largest ETF provider in terms of assets with US$22.6 Bn in 36 ETFs, reflecting 79.7% market share; Claymore Securities is second with 26 products and US$3.3 Bn, an 11.5% market share; followed by BetaPro Management with 41 products, assets of US$2.3 Bn and 8.1% market share at the end of January 2010.
Asia Pacific ex-Japan ETF and ETP Industry January 2010:
At the end of January 2010 the Asia Pacific ex-Japan ETF industry had 133 ETFs with 215 listings, and assets of US$36.9 Bn from 47 providers on 13 exchanges.
Assets
• YTD assets have fallen by 4.3%, which is less than the 6.4% fall in the MSCI AC Asia Pacific ex-Japan index in US dollar terms.
ETFs
• YTD the number of ETFs increased by 3.1% with four new ETFs launched.
Trading volume
• YTD the average daily trading volume in US dollars has increased by 1.4% to US$0.90 Bn.
ETF providers
• State Street Global Advisors is the largest ETF provider in terms of assets with US$9.6 Bn, in six ETFs, reflecting 26.0% market share; iShares is second with 13 products and US$7.1 Bn, a 19.2% market share; followed by Hang Seng Investment Management with three products, assets of US$5.5 Bn and 14.8% market share at the end of January 2010.
ETFs & ETPs
• Combined, there were 145 products with 229 listings, and assets of US$39.3 Bn from 50 providers on 13 exchanges.
Japan ETF and ETP Industry January 2010:
At the end of January 2010 the Japanese ETF industry had 68 ETFs with assets of US$24.2 Bn from six providers on two exchanges.
Assets
• YTD assets have fallen by 1.6%, compared to an increase of 1.3% in the MSCI Japan Index in US dollar terms.
ETFs
• YTD the number of ETFs remains unchanged with 68 ETFs.
Trading volume
• YTD the average daily trading volume in US dollars has increased by 12.2% to US$0.17 Bn.
ETF providers
• Nomura Asset Management is the largest ETF provider in terms of assets with US$13.5 Bn, in 30 ETFs, reflecting 55.7% market share; Nikko Asset Management is second with 10 products and US$5.4 Bn, a 22.4% market share; followed by Daiwa Asset Management with 22 products, assets of US$4.7 Bn and 19.4% market share at the end of January 2010.
ETFs & ETPs
• Combined, there were 73 products with 82 listings, and assets of US$24.5 Bn from six providers on two exchanges.
Latin America ETF and ETP Industry January 2010:
At the end of January 2010 the Latin American ETF industry had 17 ETFs with 211 listings, and assets of US$9.5 Bn from three providers on three exchanges.
Assets
• YTD assets have fallen by 2.6%, which is less than the 8.9% fall in the MSCI EM Latin America Index in US dollar terms.
ETFs
• YTD the number of ETFs remains unchanged with 17 locally domiciled ETFs.
Trading volume
• YTD the average daily trading volume in US dollars has increased by 16.0% to US$0.26 Bn.
ETF providers
• iShares is the largest ETF provider in terms of assets with US$8.2 Bn, in 15 ETFs, reflecting 86.2% market share; Banco Itau is second with US$1.3 Bn in one locally domiciled ETF, a 13.8% market share at the end of January 2010.
Source: ETF Research and Implementation Strategy, Blackrock
Component Changes Made To Dow Jones Select Dividend Indexes
February 18, 2010--Dow Jones Indexes, a leading global index provider, today announced component changes in the Dow Jones France Select Dividend 20 and Dow Jones Germany Select Dividend 20 indexes.
In the Dow Jones France Select Dividend 20 Index, Euler Hermes S.A. (France, Insurance, ELE.FR) will be replaced by Credit Agricole d'Ile de France (France, Banks, CAF.FR).
In the Dow Jones Germany Select Dividend 20 Index, Daimler AG (Germany, Automobiles & Parts, DAI.XE) will be replaced by Deutsche Euroshop AG (Germany, Real Estate, DEQ.XE).
Euler Hermes S.A. (France, Insurance, ELE.FR) and Daimler AG (Germany, Automobiles & Parts, DAI.XE) are being removed due to the cancellation of their dividend payments. All changes will be effective as of the open of trading on Tuesday, February 23, 2010.
Further information on the Dow Jones France Select Dividend 20 and Dow Jones Germany Select Dividend 20 indexes can be found at http://www.djindexes.com
Source: Dow Jones Indexes
Buy-out investors step up demands
February 17, 2010--In most industries, the largest customers can demand better terms from a company when they place big orders. But in private equity, investors have for many years been prepared to accept the same terms, however much they invest.
This is now changing, according to some of the world’s biggest buy-out bosses.
David Rubenstein, co-founder of the Carlyle Group, told last week’s Super Return conference in Berlin that big investors were starting to ask for special terms on custom accounts tailored especially for them.
Source: FT.com
CDP drives forward carbon management globally
Record number of investors support CDP’s 2010 request for climate change information
February 17, 2010--The Carbon Disclosure Project (CDP) today announced its eighth annual request for information on greenhouse gas emissions and climate change strategies to over 4,500 companies globally. Companies this year will report to CDP through an upgraded system, developed with Accenture, Microsoft and SAP, that will for the first time utilize the full power of online analysis tools to drive improved carbon management.
A global, independent, not-for-profit organization, CDP is the world’s largest institutional investor collaboration working to inform the global market place on investment risk and commercial opportunity. The number of institutional investors that signed CDP’s annual request for climate change information this year has risen from 475 in 2009, to a record 534 with a combined US$64 trillion of assets under management. New signatory investors include Wells Fargo, BNY Mellon, Generali and the Industrial Bank of Korea.
CDP continues to act on investor interest in emerging markets with requests for information going to companies in the S&P/IFCI Carbon Efficient Index. This year CDP is, for the first time, writing to companies in Turkey, Peru, Morocco, Egypt and Israel as well as continuing to expand its coverage in areas such as Asia, Poland, Chile and Mexico.
CDP gives companies the tools they need to identify and report material risk and opportunity to their business from climate change. This is an increasingly important skill for US corporations to master, following the recent publication of climate change risk disclosure guidance by the Securities and Exchange Commission (SEC).
Source: The Carbon Disclosure Project (CDP)
Strong Start to 2010 with $400mn of ETC Inflows Globally, New Records in Precious Metal Holdings as Gold Hits All Time High in Euro Terms
$400mn of global net inflows YTD
Global physical palladium holdings reach 1.1mn ounces, a world record
February 17, 2010--ETF Securities (ETFS), the global pioneer in Exchange Traded Commodities (Commodity ETCs), 3rd generation Exchange Traded Funds (ETFs) and Exchange Traded Currencies (Currency ETCs) has seen a strong start to 2010, with $400mn of net inflows across precious metals, energy and agriculture over the first 6 weeks of the year.
ETFS long oil ETCs saw $49mn of inflows last week, taking inflows over the past four weeks to $143mn (equivalent to $79mn and $208mn respectively in effective inflows, allowing for the double exposure of leveraged oil ETCs). These inflows have coincided with a drop in spot oil prices towards $70/barrel. These flows contrast with strong inflows into ETFS Short Crude Oil (SOIL) seen at the start of 2010 as spot prices breached the $80/barrel mark. This switch in investor positioning suggests some investors are taking active tactical trading following range-bound trading in spot oil prices recently.
With regards to agricultural commodity ETCs, investor interest in grains continues, with YTD inflows into ETFS Wheat (WEAT) and ETFS Corn (CORN) making up 2 of the top 10 performers so far this year. WEAT has seen $26mn of inflows in the first six weeks of 2010, a quarter of the entire yearly inflows over 2009. ETFS Grains (AIGG) underperformed ETFS Softs (AIGS) by 46 percentage points in 2009, led by a 26% drop in WEAT. Recent inflows could represent some investor expectations of a catchup in wheat prices compared to other agriculture prices in 2010 after near record harvests across most major Northern Hemisphere exporters weighed on wheat prices in 2009.
Source: ETF Securities
NASDAQ OMX Group Announces Majority Ownership in Agora-X
February 16, 2010--The
NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) and Agora-X, LLC today announced
that NASDAQ OMX bought a majority interest in Agora-X, an electronic
communications network for institutional trading in over-the-counter
(OTC) commodity contracts. The transaction gives NASDAQ OMX an 85
percent equity interest in Agora-X, up from its previous 20 percent
ownership, effective immediately. Financial terms were not disclosed.
"As the global leader in providing exchange technology and trading efficiencies, we believe that by expanding our partnership and investment in Agora-X, NASDAQ OMX can bring OTC commodity traders' market efficiencies, cost savings, transparency and liquidity, as we have brought these advantages to the equity markets for years. This investment is also a strategic expansion within our broader global commodities business," commented Hans-Ole Jochumsen, Executive Vice President, NASDAQ OMX Transaction Services Nordics.
"We are very excited with the expanded relationship between Agora-X and NASDAQ OMX. We've worked with NASDAQ OMX to create the technology for a best-in-class electronic marketplace, and now with their majority interest, it allows for us to take advantage of immense synergies and access to all of the NASDAQ OMX resources," said Brent M. Weisenborn, Chief Executive Officer of Agora-X. "The Agora-X platform makes a dramatic difference in price discovery by enabling traders to obtain best prices in a more open, liquid and transparent electronic marketplace. Displaying bids and offers for derivative contracts on Agora-X, rather than negotiating transactions through time-consuming phone calls or instant messages, saves traders time and money."
Agora-X enables institutional market participants to efficiently negotiate OTC transactions in commodity and derivative contracts, including through bilateral negotiation. As previously announced, Agora-X offers automatic clearing through CME ClearPort(R) on certain OTC derivatives along with an electronic audit trail on all transactions.
As a result of the investment, Agora-X will become a part of NASDAQ OMX Commodities business. Brent M. Weisenborn will report to Geir Reigstad, Head of NASDAQ OMX Commodities. The NASDAQ OMX Commodities business provides access to the world's largest power derivatives exchange and one of Europe's major carbon markets, together with Nord Pool ASA. FCStone Group, Inc., a commodity risk management firm, previously held the majority ownership position in Agora-X and will continue to hold a minority stake.
Source: NASDAQ OMX
Doomsday regulation scenario laid out
February 16, 2010--The biggest banks will see their profitability fall by nearly two-thirds next year under a doomsday scenario to be outlined in research published on Wednesday .
Analysts at JPMorgan have calculated that if the full burden of regulatory and political initiatives to crack down on banks’ risks is implemented, it would cut the average return on equity from a projected 13.3 per cent to 5.4 per cent.
Source: FT.com
Pressure mounts on corporate responsibility reporting
February 15, 2010--A coalition of global investors from 13 countries with over $2.1trn (€1.5trn) of assets is calling for better corporate reporting on environmental, social and corporate governance (ESG) activities.
The international investor coalition is writing to 86 major companies urging them to honour the reporting requirements of the UN’s corporate responsibility Global Compact initiative. Each of the 86 laggard companies previously joined the initiative but failed to produce the mandatory annual report on how it puts the initiative’s ten principles into action.
Source: IP&E
ETF Landscape: Industry Review - Year End 2009
February 15, 2010--Global ETF assets break through US$1 trillion milestone at the end of 2009
At the end of December 2009 the global ETF industry assets exceeded US$1 trillion with 1,947 ETFs and 3,787 listings from 110 providers on 40 exchanges around the world.
Source: ETF Research and Implementation Strategy, Blackrock
Morningstar Reports U.S. Mutual Fund and ETF Asset Flows Through January 2010
February 12, 2010--Morningstar, Inc., a leading provider of independent investment research, today reported estimated U.S. mutual fund and exchange-traded fund asset flows through January 2010. Mutual funds saw inflows of $44.5 billion in January. Domestic-stock funds gathered $2.7 billion in assets, reversing four consecutive months of outflows, while international-equity funds took in more than $8.1 billion—the biggest monthly inflow for the asset class since December 2007.
Meanwhile, bond funds continued to dominate all other asset classes, with investors adding $28.0 billion to fixed-income funds during the month. Following strong inflows in 2009, U.S. ETF flows dipped into the red to kick off 2010, with $16.7 billion in net outflows in January. Although industry assets fell to $746.9 billion, a 4.8% decline from December, total net assets for ETFs grew 49.2% on a year-over-year basis.
Additional highlights from the report on mutual funds:
Based on total net assets, fixed-income funds now represent approximately 30% of the mutual fund market, up from 19% at the end of 2007.
Despite significant outflows from several Fidelity large-cap funds in January, the firm registered net inflows of nearly $1.6 billion. On the heels of a positive January and coming off inflows of nearly $16.2 billion in 2009, Fidelity has not come close to making up 2008's outflow of $37.3 billion.
Although active funds still dominate the mutual fund market, passive strategies have increased their market share to 20%, up from 11% at the beginning of 2000.
American Funds experienced outflows for the seventh straight month, but the pace of the firm's outflows has slowed. Davis Funds and Selected Funds, both run by Davis Advisors, saw outflows again last month, a trend the firm has experienced since late 2008. Ivy Funds had a strong month, paced by $709.2 million in inflows to Ivy Asset Strategy.
Additional highlights from the report on ETFs:
SPDRs SPY, whose massive size and heavy trading activity tends to skew ETF flow data, had more than $15.1 billion in outflows in January.
International-stock ETFs took in $888.2 million in net assets in January, led by Vanguard Emerging Markets VWO, which saw $894.0 million in net inflows. iShares Barclays TIPS Bond TIP had inflows of $674.1 million in January, as investors poured more than $1.9 billion into taxable-bond ETFs.
Over the past year, Vanguard's ETF assets have more than doubled, and the firm's ETF market share has grown to about 12.4% from 8.5% a year ago.
view the Morningstar DirectSM Fund Flows Update
Source: Morningstar
