Americas ETP News
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BlackRock deal creates ETF powerhouse in Canada
January 11, 2012--BlackRock Inc. is forging ahead with ambitious growth plans for the Canadian market, striking a deal for Claymore Investments Inc. that unites the country’s top two sellers of exchange-traded funds.
The deal between BlackRock, the world’s biggest asset manager, and Claymore comes just after U.S. fund powerhouse Vanguard Group Inc. made its assault on Canada last month with its first suite of low-fee ETFs that compete directly against BlackRock’s iShares offerings.
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Source: Globe and Mail
ETRACS ETNs Occupy Top Two Performance Spots in 2011 for Master Limited Partnership (“MLP”) Exchange Traded Products
January 10, 2012--UBS Investment Bank today announced that ETRACS MLP ETNs were the top two performing exchange-traded notes (“ETNs”) or exchange-traded funds (“ETFs”) linked to a MLP index in 2011.*
MLP ETNs and ETFs are exchange-traded securities designed to deliver the performance of an underlying MLP index. The table below summarizes the performance of all US-traded MLP ETNs and ETFs that were listed on a U.S. securities exchange for full-year 2011:
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Source: Yahoo Finance
Envestnet Adds IndexIQ’s IQ Global Alternatives ETF Model Portfolio to Liquid Alternatives Program
Envestnet program meets demand for accessible alternative strategies, as advisors seek solutions for improving portfolio diversification, reducing volatility and enhancing absolute performance in all market environments
January 10, 2012--IndexIQ announced today that Envestnet, Inc. (NYSE: ENV), a leading provider of wealth management solutions with over
$127 billion in total assets served and more than 909,000 investor accounts, has added IndexIQ’s IQ Global Alternatives ETF Portfolio for inclusion in Envestnet’s Liquid Alternatives Program.
Envestnet’s Liquid Alternatives Program is designed to help advisors identify high-performing liquid alternative strategies, including exchange-traded funds (ETFs), while providing guidance in utilizing these portfolios. The Program is a direct response to the growing demand for accessible alternative strategies, as advisors seek vehicles for improving portfolio diversification, reducing volatility and enhancing absolute performance in all market environments. Unlike actual hedge funds, the Liquid Alternatives Program offers investors lower investment minimums and better liquidity; they can buy or sell the strategies on the open market at any time. Advisors can deploy Envestnet’s Liquid Alternatives Program on the company’s SMA and UMA platforms.
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Source: Index IQ
Vanguard leads 2011 cash race for US ETF providers
January 10, 2012--Vanguard led the race among US exchange traded fund providers for investors’ cash for a second year in succession in 2011, pushing iShares, the world’s largest ETF provider, into the runner’s up spot, according to data from the ETF Industry Association.
Net new inflows into US listed ETFs (funds and products) topped the $100bn mark for a fifth year in succession at $117.6bn, down 1 per cent on the $118.7bn gathered in 2010.
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Source: FT.com
Appetite for new US ETF wanes
January 10, 2012--A record number of new US exchange-traded funds failed to attract substantial investor demand last year, leaving fund operators facing losses in one of the first signs that the industry’s explosive growth may have peaked.
The US ETF industry ended last year with more than $1tn in assets under management, compared with $540bn at the start of 2009. But that rapid growth has attracted scrutiny from regulators, and there are signs the market may be saturated.
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Source: FT.com
New ETFs struggle for assets
January 10, 2012-- As more and more exchange-traded funds enter the market, appetites for new baskets of stocks seem to be diminishing – at least in the United States. According to the Financial Times and XTF, an ETF research firm, 79 per cent of the 190 ETFs launched in the first six months of 2011 failed to attract enough money to make the new funds economical and sufficiently liquid (defined as more than $30-million (U.S.) in assets under management).
That’s up from 62 per cent in 2010 and less than 50 per cent in 2009.
As the article notes, ETF providers have been determined in recent years to tap into the growing popularity of ETFs – which resemble index mutual funds but trade throughout the day on stock exchanges and generally charge far lower fees.
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Source: Globe and Mail
Pimco to launch total return bond ETF March 1
January 10, 2012--Pacific Investment Management Co. has received approval from the U.S. Securities and Exchange Commission to launch its total return exchange traded fund on March 1, Pimco said on its website.
The company announced plans last year for the actively managed ETF, which will mimic the strategy of Pimco’s Total Return Fund. (Investors in Canada will be able to buy the ETF on the New York Stock Exchange in the same way they can buy U.S.-listed stocks, although it will be subject to currency fluctuations.)
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Source: Globe and Mail
ForeSight from BNY Mellon
January 10, 2012--Investors are becoming more price conscious. In response to the increased pressure to lower 401(k) costs, alternatives to traditional mutual fund investments that offer significantly lower fees are growing in popularity.
The latest offering is an all-index 401(k) plan announced Tuesday by Schwab Retirement Plan Services Inc.
The investment choices for the Schwab Index Advantage plan are limited to index funds, which are designed to track established market indexes such as the S&P 500. Index investing continues to grow in popularity because index funds do not carry the higher fees of actively managed funds
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Source: ABC News
Schwab Finds U.S. Fixed Income Exchange-Traded Funds Gain Favor While Gold Loses Luster With Advisors
Domestic Fixed Income and Equity ETFs Accounted for 87 Percent of Advisors’ Net ETF Flows in 2011
January 9, 2012--The appetite for exchange-traded funds (ETFs) among independent investment advisors continues unabated into 2012, but a new report released today by Charles Schwab suggests advisors will use them differently this year. U.S. fixed income ETFs captured 54 percent of ETF inflows in 20111, and U.S. equity ETFs saw 33 percent of flows, while funds tracking international equities and commodities - and gold in particular – lost favor.
Independent advisors held $60 billion in ETF assets at Schwab as of November 30, 2011, up five percent from the end of 2010, and ETF trade volume among advisors was up 26 percent during this same time.
“Advisors large and small see real client benefits in ETFs’ low-cost structure and flexibility, as they can make tactical adjustments to portfolios in changing markets,” said Beth Flynn, vice president of ETF platform development at Charles Schwab. “The data in our report underscore this, and the insights from our experts offer a glimpse for advisors into the ETF landscape in 2012.”
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Source: Charles Schwab
WallachBeth Adds 2 More Industry Vets to Firm's ETF Desk
Januay 9, 2012--WallachBeth Capital LLC (“WB”), the institutional brokerage/execution firm
specializing in exchange-traded funds (ETFs), equities and options, today announced its further expansion with the
addition of two more industry veterans to the firm’s ETF execution division, one of the leading ETF desks in the
Industry.
Chris Hempstead, a 20-year trading market veteran joins as Director of ETF Execution, and Dong Lee, a
12-year ETF product specialist joins as Director of Institutional Sales
Noted Michael Wallach, WB’s co-founder and CEO, “The continued growth in the ETF product arena, coupled with our firm’s unique approach to true best execution has struck more than a chord with the institutional investor community, and has required us to continuously ramp up our infrastructure with the Industry’s most talented individuals. Both Chris and Dong will add further depth to a team that’s become widely-recognized throughout the ETF landscape.”
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Source: WallachBeth
