Global ETF News Older than One Year
Balancing risk and reward sustainably in the BRICS
April 19, 2010--As the world slowly emerges from the global economic and financial crisis, businesses and governments are realising that the global economic and financial landscape has changed and that they must adapt to this new environment. As consumption in advanced economies remains stunted, increasing attention is focused upon the potentially vast consumer market in the BRICs, which many are hoping will play a key role in driving global demand and pulling the world out of recession.
While the long-term rewards are evident, there are significant risks to investing in these economies short- term. However, with sound risk management strategies in place, supported by ethical business principles and environmental and social policies, foreign companies working in the BRICs, and in partnership with domestic companies overseas, are poised to benefit from their projected phenomenal growth over the next decade. Even before the global economic and financial crisis, the growth potential of the BRICs – Brazil, Russia, India and China – was luring investors from across the globe. In 2003, two years after the concept was founded by Goldman Sachs chief economist, Jim O’Neill, economists were predicting that by 2040 the BRICs economies together could be larger than the G6 in US dollar terms.
Source: Responsible Investor
ETF Landscape: Industry Highlights - End March 2010
April 15, 2010-Highlights
We celebrate the 10th anniversary of ETFs in Europe as the first ETFs to launch in Europe were the iShares DJ STOXX 50 (EUN1 GY) and iShares DJ Euro STOXX 50 (EUN2 GY) on 11 April 2000 on the Deutsche Boerse, followed by the iShares FTSE 100 (ISF LN) on the London Stock Exchange extraMARK segment on 28 April 2000.
We also celebrate the 20th anniversary since the launch of the very first ETF globally. Twenty years ago on 9 March 1990 the first ETF was listed in Canada on the Toronto Stock Exchange (TSX): the TIPs (Toronto 35 Index Participation Fund) tracking the TSX 35 Index. It was followed by the HIPs (Hundred Index Participation Fund) tracking the TSX 100 Index on 26 September 1995. Ten years ago on 7 March 2000, the TIPs and HIPs ETFs were merged into the iUnits S&P/TSE Index Participation Fund (XIU CN): an ETF that was originally listed on 4 October 1999.
Global ETF and ETP Industry end March 2010:
* The global ETF industry had 2,131 ETFs with 4,133 listings, assets of US$1,081.9 Bn, from 123 providers on 42 exchanges around the world.
European ETF and ETP Industry end March 2010:
* The European ETF industry had 910 ETFs with 2,579 listings, assets of US$233.7 Bn, from 36 providers on 18 exchanges.
* Net new assets into European domiciled ETFs/ETPs totalled US$11.5 Bn YTD, with Emerging Market equities receiving US$2.3 Bn net inflows, followed by Asia Pacific equity with US$1.9 Bn and Commodities with US$1.7 Bn net new assets YTD.
United States ETF and ETP Industry end March 2010:
* The US ETF industry had 814 ETFs, assets of US$736.3 Bn, from 29 providers on two exchanges.
* Net new assets into US domiciled ETFs/ETPs totalled US$8.9 Bn YTD, with Fixed Income receiving US$10.1 Bn net inflows, followed by Global (ex-US) equities with US$1.9 Bn net new assets while North American equities experienced US$2.4 Bn net outflows.
Canada ETF and ETP Industry end March 2010:
* The Canadian ETF industry had 132 ETFs, assets of US$32.8 Bn, from four providers on one exchange.
Asia Pacific ex-Japan ETF and ETP Industry end March 2010:
* The Asia Pacific ex-Japan ETF industry had 159 ETFs with 255 listings, and assets of US$40.6 Bn from 53 providers on 13 exchanges.
Japan ETF and ETP Industry end March 2010:
* The Japanese ETF industry had 70 ETFs with 73 listings, and assets of US$27.3 Bn from six providers on two exchanges.
Latin America ETF and ETP Industry end March 2010:
* The Latin American ETF industry had 21 ETFs with 231 listings, and assets of US$9.3 Bn from three providers on three exchanges.
Source: Global ETF Research & Implementation Strategy Team, BlackRock
Accounting rules deadline under threat
April 14, 2010--Accounting standard setters have said they could fail to meet a timetable for the creation of a single global set of accounting rules because they are so far unable to agree on how to value financial instruments, one of the most controversial issues of the crisis.
The Group of 20 leading industrialised nations last September pledged support for a global set of accounting standards to improve capital flows and cut down on cross-border arbitrage in response to the financial crisis. They set a deadline of June 2011.
Source: FT.com
iShares Eclipses $500 Billion in Assets Under Management
April 14, 2010--BlackRock, today announced its Exchange Traded Fund (ETF) platform, iShares, has reached global Assets under Management (AUM) of US$509 billion as of March 31, 2010. This is a significant milestone for the business that continues to drive the ETF industry's rapid growth and accounts for nearly half of the industry's total assets under management.
iShares, celebrating its 10-year anniversary this year, was founded in 2000 and has grown to be a leading fund family and has significantly impacted the financial services landscape and how investors view and utilize funds. Today, retail and professional investors use iShares ETFs to access broad and specific segments of the market and they continue to be attracted to the benefits that include tradability, transparency, diversification and cost- and tax-efficiency. This new milestone follows a strong 2009 for iShares and ETFs as they pushed further into the investing mainstream.
"iShares ETFs have significantly impacted the way people invest by providing investors with access and liquidity to markets around the world, and achieving this $500 billion AUM milestone greatly validates the acceptance of iShares ETF offerings," said Michael Latham, Head of US iShares. "iShares continues to help drive global ETF industry growth by educating financial intermediaries and the investing public about iShares as core investments, continuing the development of innovative, solutions-oriented products and expanding the availability of iShares via 401(k) and other platforms."
iShares has 434 ETFs globally as of March 31, 2010. iShares US has 201 funds with US$409 billion AUM and iShares Europe has 172 ETFs with US$100 billion AUM.
Source: BlackRock
NYSE Arca Europe To Launch U.S. Equities
April 14, 2010--NYSE Arca Europe today announced that it will admit U.S. equities to its trading platform when it launches the components of the S&P 100 Index for trading during the second quarter of 2010, creating the first truly transatlantic trading platform. EuroCCP, will offer clearing services for these securities with settlement taking place via EuroCCP’s account at The Depository Trust Company (DTC), the U.S. central securities depository and subsidiary of the Depository Trust and Clearing Corporation (DTCC), providing trading firms with a cost-effective posttrade solution.
This service will provide trading firms the first-ever opportunity to trade U.S. securities on a European platform during European trading hours with settlement at DTC. Initially, S&P 100 stocks will be admitted to the platform; however, further stocks are likely to be introduced in the near future.
Virginie Saade, Head of NYSE Arca Europe, said “Our clients have shown a strong interest in being able to trade U.S. stocks through NYSE Arca Europe, seeing this as a good business opportunity. As part of NYSE Euronext, we have been able to leverage the Group’s knowledge and experience of the U.S. market, as well as our relationship with EuroCCP, to help unlock the U.S. stocks for our European clients for the first time, at low cost. This is an opportunity for us to create the first transatlantic trading platform and is an important step towards becoming a truly global MTF.”
Source: NYSE Arca Europe
IMF adds weight to big bank surcharges
April 13, 2010--The International Monetary Fund on Tuesday urged US and European regulators to consider imposing higher customised capital requirements on “systemically important” banks deemed “too big to fail”.
The discussion of capital surcharges for big banks will prove controversial on Wall Street and in London, where bankers have argued that large institutions should not be penalised by regulators because of their size
Source: FT.com
Oil sands resolution continues to gain pensions support
April 12, 2010--Several major US pension funds and Australian superannuation investors are the latest players to back a call for BP to report further information on the implications of extracting oil from tar sands.
BP will face a motion tabled by UK lobbying body FairPensions at its AGM later this week calling for the company to report details of the financial, environmental and social risks of using tar sands from next year.
Source: IP&E
Quarterly ETP Market Update: Growth on Track
April 12, 2010--Our 15-20% global ETP market growth forecast over 2010, assuming flat
equity markets is on track. In the first quarter of 2010, the global ETP market
reached $1.14 trillion experiencing overall growth of 3.5%. Growth was
fuelled by strong fixed income inflows on both sides of the Atlantic, and
strong European equity inflows that kept the global growth on track despite
equity outflows in the US and Asian markets.
The US ETP market grew by 3.9% in Q1’10 and it is on track with our forecast of 15-20% growth by year end, assuming flat equity markets. The European market continued to grow at twice the rate of the US market and experienced growth of 8.5% over Q1’10. Our forecast of the European market growing at 20-25% over 2010 remains on track, with a possibility that the growth rate could be revised upwards pending cash flow performance in Q2’10. It is worth noting that despite the fact that the European market is 3 times smaller than the US market, it saw comparable cash flows over Q1’10 (US: $9.3, EU; $9.9).
The US ETP market experienced inflows of $9.3 billion over Q1’10. US equity ETPs experienced outflows of $2.3 billion over the quarter, while commodities finished the quarter flat and fixed income saw very strong inflows of $11.3 billion. Extreme US equity ETP market outflows that peaked at $23 billion on February 9 2010 reversed as equity market volatility reached record lows for the past year by quarter end (8.31% on 31/3/010). Re-bounding US market equity ETP cash flows followed a steady trajectory suggesting they were driven by fundamentals rather than quarter-end window dressing.
US commodity ETPs emerged as the second most traded US ETP asset class after equity due to the fact that these instruments remain largely a trader’s tool, while other ETP asset classes such as fixed income are more of a buyand- hold investment.
In Europe, all asset classes continued to experience inflows, totalling €7.5 billion, throughout Q1’10, with equity and alternative cash flow trajectory remaining positively steeper than other asset classes, despite converging volatility patterns.
Overall, the global ETP market experienced a very strong product launch calendar over Q1’10, with a total of 242 new products globally (Europe: 171, US: 57 and Asia 14). While all asset classes saw new product launches globally, the flavour in Europe was commodities and alternatives while in the US it was emerging markets.
Source: Deutsche Bank
Deutsche Börse launches fastest algo news feed with macroeconomic information
"AlphaFlash” delivers indicators into algorithmic trading applications
:
April 12, 2010--Deutsche Börse expands its data and news feed offering by launching AlphaFlash,
the fastest currently available data feed for machine readable, trading
relevant macroeconomic releases. AlphaFlash delivers more than 150 economic indicators from the US, Canada and Europe. Market participants use this data as triggers for their trading algorithms.
AlphaFlash is the first joint product of the Deutsche Börse’s segment Market Data & Analytics and the US financial news agencies Need to Know News (NTKN) and Market News International (MNI), both entities of Deutsche Börse Group. “AlphaFlash ideally combines the strengths of all partners. With AlphaFlash we are assuming the lead in the delivery of global event data for algo traders”, said Georg Gross, Head of Front Office Data & Analytics at Deutsche Börse.
As fully accredited news agencies NTKN and MNI have direct access to government lock-up rooms as well as embargoed news releases. Economic events such as central bank decisions, employment figures, inflation numbers as well as GDP are processed so they become available with minimum latency to speed sensitive algo traders via Deutsche Börse’s high speed network. The information can be used in trading applications immediately following its release.
Source: Deutsche Börse
BlackRock-ETF Landscape Global Handbook Q1 2010
April 9, 2010--At the beginning of March 2010 the global ETF industry had 2,091 ETFs with 3,998 listings, assets of US$1,001.9 Bn, from 115 providers on 40 exchanges around the world.
Additionally, there were 630 Exchange Traded Products (ETPs), with 921 listings and assets of US$150.03 Bn from 40 providers on 18 exchanges. Combined, there were 2,721 products with 4,919 listings, assets of US$1,152.2 Bn from 139 providers on 43 exchanges around the world.
Source: Global ETF Research & Implementation Strategy Team, BlackRock
