Global ETF News Older than One Year
ETF Landscape: Industry Highlights - Data as at End January 2010
February 12, 2010--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.
Source: ETF Research and Implementation Strategy, Blackrock
Financial Select Sector SPDR Fund to be rebalanced
February 11, 2010-State Street Global Advisors is rebalancing the Financial Select Sector SPDR Fund on 12 February to reflect the addition of Berkshire Hathaway to its underlying index.
Berkshire Hathaway will become a component security of the index for the fund on or about 16 February.
No changes are being made to the fund’s investment objectives or ticker symbol.
To facilitate an orderly rebalancing for the fund, the list of securities applicable to all purchase and redemption orders placed on 12 February will be based on post-rebalance index holdings instead of index holdings as of the close of business on 11 February.
State Street Global Advisors is the investment management business of State Street Corporation.
Source: State Street Global Advisors
Dow Jones Joins CME Group In Financial Index Venture
Formal Structure Ensures Integrity and Independence of Dow Jones Industrial Average
February 10, 2010--Dow Jones & Company and CME Group announced an agreement to form a joint venture to operate a global financial index services business.
The definitive agreement provides for CME Group to own 90% of the venture to which Dow Jones will contribute its Dow Jones Indexes business valued at $675 million.
Dow Jones will hold the remaining 10% and retain a key role in the management of the Dow Jones Industrial Average. CME Group will contribute a business which provides certain market data services valued at $607.5 million to the joint venture. The new joint venture will also raise approximately $613 million in third-party debt which will be used to pay a $607.5 million distribution to Dow Jones.
“A venture with CME Group provides advantages the index business needs to grow and prosper,” said Les Hinton, chief executive officer of Dow Jones. “This affords Dow Jones the opportunity to tighten its focus on its news and business information products while preserving and protecting an iconic business brand.”
Taken together, the distribution received from the joint venture with CME Group and the previously announced sale of the company’s interest in STOXX Ltd. represent nearly $1 billion in proceeds to Dow Jones.
Terms of the agreement provide for the joint venture to license the Dow Jones name for the financial-index business on a long-term basis. Ownership of the Dow Jones brand, including trademarked names, remains with Dow Jones.
A formal structure will ensure the integrity and independence of Dow Jones index products. For example, the managing editor of The Wall Street Journal will continue to share in decisions regarding the composition and application of the Dow Jones Industrial Average.
“The Dow Jones Industrial Average was created more than a century ago by the editors of The Wall Street Journal as a convenient and accurate measure of stock-market performance. This agreement perpetuates that purpose for the Journal and for investors world-wide,” said Robert Thomson, managing editor of the Journal.
Earlier this year, Dow Jones announced a new organizational structure combining its two major divisions into a single business unit serving both enterprises and consumers. This transaction with CME Group and the sale of the company’s interest in STOXX further concentrate Dow Jones’s scope around core news and information products such as the Journal, Dow Jones Newswires, Barron’s, MarketWatch and Dow Jones Factiva.
This transaction, which is subject to regulatory approvals and other customary closing conditions, is scheduled for completion in the 2010 first quarter.
Created in 1896 by Charles Dow, one of the founders of Dow Jones, the Dow Jones Industrial Average originally had 12 stocks, including a leather maker, a steel provider and a sugar producer. The industrial average was first published in the Journal on May 26, 1896, but wasn’t regularly featured in the paper until October of that year. The Dow Jones Industrial Average became a household name after the stock market crash of 1929 when people beyond Wall Street began taking an active interest in the status of the market.
The first index from Dow Jones debuted in 1884 at a time when railroads dominated the economy. That predecessor of what is today the Dow Jones Transportation Average was originally named the Dow Jones Railroad Average.
Dow Jones first commercialized its indexes in 1997. Those initial licensing efforts led to the creation of the Dow Jones Indexes business.
Source: Dow Jones Indexes
Deutsche Bank and NASDAQ OMX Introduce the DB NASDAQ OMX Clean Tech Index
February 10, 2010--DB Climate Change Advisors
(DBCCA), the climate change investment and research business of Deutsche Bank's Asset Management business, and The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced the introduction of the DB NASDAQ
OMX(R) Clean Tech Index (DBCC).
The index is an accurate, real-time representation of the global clean technology sector with exposure to clean energy, energy efficiency, transport, waste management and water companies. This is the first clean technology index co-branded by a global exchange company and a global bank.
The index is comprised of 119 companies identified by DBCCA from a global universe of ~4,000, each with at least a third of revenues derived from clean technology within investable geographies and exchanges identified by NASDAQ OMX. Of these, 106 companies have over 50% in clean tech revenues, using only demonstrated revenue from filed financial statements. Constituent companies must have market capitalization of $250 million and over $1 million average daily dollar trading volume. The index is equal-weighted to offer greater exposure to smaller-cap companies.
"Climate change has already, and we believe will continue to deliver as an attractive source of alpha - which is one of the reasons why we saw the need to provide investors with a comprehensive, global and accurate benchmark for the sector," said Kevin Parker, Global Head of Deutsche Bank's Asset Management division (DeAM) and a member of Deutsche Bank's Group Executive Committee. "Through this collaboration, we are able to offer investors an index that combines the best of DBCCA's clean tech investment expertise and thought leadership with NASDAQ OMX's globally trusted index design and calculation services."
"This index demonstrates the commitment of two global innovators to provide investors greater insight into companies that are driving the clean technology industry," said NASDAQ OMX Executive Vice President John Jacobs. NASDAQ OMX looks forward to continuing to work with Deutsche Bank. Together, we offer investors a unique combination of trusted leadership, expertise and services."
In addition to a price return index, a total return version is also calculated (DBCT). The DB NASDAQ OMX Clean Tech Index is calculated in real-time and commenced calculation today with a value of 1,000.00. The index provides complete transparency about screening methods, selection criteria, securities, and sector mapping. For more information including a list of component companies, visit http://www.dbcca.com.
Source: NASDAQ OMX
Asia Pacific Market Outperforms Europe And The USA - FTSE Mondo Visione Exchanges Index Falls 10.2 Per Cent In January 2010
February 10, 2010--Listed exchanges suffered a hard start to the year with 16 out of the 18 exchanges on the FTSE Mondo Visione Exchanges Index experiencing a fall in their share prices.
The Index*, which aims to reflect market sentiment and is a key indicator of exchanges performance, fell by 10.
Bolsa Mexicana de Valores SA, Mexico, and Hellenic Exchanges SA, Greece, are the only listed exchanges to experience an increase in share price, up 7.6 and 3.1 per cent respectively.
Commenting on the Index which closed at 21,183.41 on 29 January 2010, Herbie Skeete, Managing Director, Mondo Visione and also Co-founder of the Index said:
"Exchanges got off to a frosty start in January with only Bolsa Mexicana and Hellenic Exchanges escaping the carnage that beset the sector in January".
Asia-Pacific based exchanges, including Australia Securities Exchange, Hong Kong Exchanges & Clearing and New Zealand Exchange, performed better than their US and European counterparts.
The FTSE Mondo Visione Exchanges Index best performer by capital returns in US dollars was Bolsa Mexicana de Valores SA with a 7.6 per cent increase in share price from 31 December 2009 to 29 January 2010. The FTSE Mondo Visione Exchanges Index worst performer by capital returns in US dollars was Deutsche Boerse with a 20.6 per cent decrease in share price from 31 December 2009 to 29 January 2010.
*The FTSE Mondo Visione Exchanges Index is compiled by FTSE Group from data based on the share price performance of listed exchanges and trading platforms.
FTSE Mondo Visione Exchanges Monthly Analysis – January 2010
Source: Mondovisone
ICR and NASDAQ OMX to Host IPO Summit
An Exclusive Event for Chinese Enterprises Seeking a U.S. Listing
February 9, 2010--ICR, a
leading financial communications consulting firm specializing in
investor relations, corporate communications and digital media, and
The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ), the world's largest
exchange company, today announced they will host a U.S. IPO Summit
on Wednesday, March 3, 2010, at the St. Regis Beijing.
The U.S. IPO Summit, an exclusive event for Chinese enterprises seeking a U.S. listing, will educate China-based companies about best practices in the U.S. capital markets with a focus on today's more active areas of new issuance: healthcare, consumer, clean technology and education.
The Summit will bring together leading investment banking, legal and accounting firms along with ICR's experts to provide potential new issuers with best practice approaches to executing successful IPOs and upgrades in the U.S. capital markets. In addition, the event will provide companies with insight about industry-specific investor sentiment and expectations for new issuance activity.
In 2009, 33 Chinese companies listed on the NASDAQ Stock Market, an exchange of NASDAQ OMX, the most of any U.S. exchange during the past year. A total of 124 Chinese companies now list on NASDAQ, including 102 from mainland China and 22 from Taiwan, Hong Kong and Macau. NASDAQ OMX has offices in Beijing and Hong Kong.
Sponsors on sector-focused new issuance activity include HSBC, Piper Jaffray and Jefferies & Co. The event will also feature key topics on re-IPOs from sponsors such as Rodman & Renshaw and Loeb & Loeb, as well as best practices in IPO-related services from BNY Mellon and Bowne.
Participation in the U.S. IPO Summit is by invitation only. Interested parties or members of the media who would like to attend should contact Wen Lei Zheng at 646-277-1215 or by email at wenlei.zheng@icrinc.com. For more information on the conference, please visit our website at: www.iposummit.com.
Source: NASDAQ OMX
NASDAQ OMX Announces Fourth Quarter 2009 Results
Non-GAAP Diluted EPS $0.46 (GAAP Diluted EPS $0.20)
February 8, 2010-The NASDAQ OMX Group, Inc.
("NASDAQ OMX(R)") (Nasdaq:NDAQ) today reported net income attributable
to NASDAQ OMX of $43 million, or $0.20 per diluted share, for the
fourth quarter of 2009 compared with net income attributable to NASDAQ
OMX of $60 million, or $0.28 per diluted share, in the third quarter of
2009, and net income attributable to NASDAQ OMX of $35 million, or
$0.17 per diluted share, in the fourth quarter of 2008. Net income
attributable to NASDAQ OMX for the full year of 2009 was $266 million,
or $1.25 per diluted share.
Included in fourth quarter of 2009 results are:
-- $51 million of impairment charges related to unconsolidated investees,net of tax;
-- $16 million in pre-tax expenses associated with occupancy sub-lease
reserves, workforce reductions, and other non-recurring items; and
-- $12 million of pre-tax gains on the sales of certain businesses.
Excluding the above items net income attributable to NASDAQ OMX calculated on a non-GAAP basis was $99 million, compared with non-GAAP net income attributable to NASDAQ OMX of $89 million for the third quarter of 2009 and $110 million for the fourth quarter of 2008. Non-GAAP diluted earnings per common share were $0.46 for the fourth quarter of 2009 compared with non-GAAP diluted earnings per common share of $0.42 for the third quarter of 2009 and $0.52 for the fourth quarter of 2008.
"We've accomplished much in the past year, completing our integration efforts and furthering the diversity of our revenue model through growth in market technology, in European derivative trading, and in fee based services," commented Bob Greifeld, NASDAQ OMX's Chief Executive Officer. "Today we are a more efficient operator with better financial flexibility, placing us in a strong position to lever our expertise in trading technology, clearing, data distribution, and corporate services. The changing dynamics of our industry are providing numerous growth opportunities and our technology leadership leaves us well positioned to swiftly capitalize on those changes to expand our business."
Source: NASDAQOMX
Euro Proving No Reserve Asset as Central Banks Shift
February 1, 2010-- Investors are pulling cash out of Europe at a record pace as central banks slow euro purchases, jeopardizing its status as a substitute to the dollar as the world’s reserve currency.
Last year, policy makers loaded up on euros, while analysts at Barclays Plc in London and Aletti Gestielle SGR SpA in Milan predicted central bankers would make good on threats to reduce the greenback’s dominance. Now the euro is down 8.1 percent since Nov. 25 in its fastest slide in 10 months amid concern that cash-strapped countries like Greece won’t pay their debts. Billionaire investor George Soros said Jan. 28 that there’s “no attractive alternative” to the dollar.
Source: Bloomberg
CME Group Inc. Reports Solid Fourth-Quarter 2009 Financial Results
GAAP diluted EPS of $3.04- Pro Forma diluted EPS of $3.37- GAAP operating margin of 60 percent- Pro forma operating margin of 61 percent
February 4, 2010--CME Group Inc. (NASDAQ: CME) today reported that fourth-quarter GAAP total revenues were $667 million and GAAP operating income was $402 million. Fourth-quarter net income on a GAAP basis was $203 million and diluted earnings per share on a GAAP basis were $3.04.
The 2009 GAAP results reflect the operations of Chicago Mercantile Exchange (CME), Board of Trade of the City of Chicago (CBOT) and New York Mercantile Exchange (NYMEX) and include reductions in net income of $22 million, consisting of an impairment charge of $24 million on our investment in the Dubai Mercantile Exchange (DME) and net favorable impacts to net income of $2 million related to the ERP settlement. The 2008 GAAP results reflect the operations of both CME and CBOT, as well as the results of NYMEX after August 22, 2008, when the acquisition closed.
Fourth-quarter pro forma non-GAAP diluted earnings per share were $3.37, down 6 percent compared with the prior-year period. All pro forma results reflect the operations of both CME Group and NYMEX as if they were combined for all periods reported, and fourth-quarter 2009 pro forma non-GAAP results exclude the impairment charge, ERP adjustment and other merger-related items. Despite challenging market conditions that persisted throughout 2009, fourth-quarter represented the company's best quarterly revenue of the year. Total pro forma revenues decreased 4 percent from the prior year to $667 million, but increased $17 million from third-quarter 2009 revenues. Pro forma operating expenses decreased 2 percent to $258 million, compared with the same period last year.
Source: CME Group
As World Economy Slowly Recovers, Developing World Faces Scarce Financing, Says World Bank
Developing countries facing higher borrowing costs, lower credit levels, and reduced international capital flows
February 3, 2010-Published January 21, 2010
The global economic recovery that is now underway will slow later this year as the impact of fiscal stimulus wanes. Financial markets remain troubled and private sector demand lags amid high unemployment, according to a new report from the World Bank.
Global Economic Prospects 2010, released today, warns that while the worst of the financial crisis may be over, the global recovery is fragile. It predicts that the fallout from the crisis will change the landscape for finance and growth over the next 10 years.
Global GDP, which declined by 2.2 percent in 2009, is expected to grow 2.7 percent this year and 3.2 percent in 2011[1]. Prospects for developing countries are for a relatively robust recovery, growing 5.2 percent this year and 5.8 percent in 2011 -- up from 1.2 percent in 2009. GDP in rich countries, which declined by 3.3 percent in 2009, is expected to increase much less quickly—by 1.8 and 2.3 percent in 2010 and 2011. World trade volumes, which fell by a staggering 14.4 percent in 2009, are projected to expand by 4.3 and 6.2 percent this year and in 2011.
While this is the most likely scenario, considerable uncertainty continues to cloud the outlook. Depending on consumer and business confidence in the next few quarters and the timing of fiscal and monetary stimulus withdrawal, growth in 2011 could be as low as 2.5 percent and as high as 3.4 percent.
“Unfortunately, we cannot expect an overnight recovery from this deep and painful crisis, because it will take many years for economies and jobs to be rebuilt. The toll on the poor will be very real,” said Justin Lin, World Bank Chief Economist and Senior Vice President, Development Economics. “The poorest countries, those that rely on grants or subsidized lending, may require an additional $35-50 billion in funding just to sustain pre-crisis social programs.”
In this still weak environment, oil prices are expected to remain broadly stable, averaging about $76 a barrel; and other commodity prices should rise by only 3 percent per year on average during 2010 and 2011.
view the Global Economic Prospects 2010 report
Source: World Bank
