Americas ETP News
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The majority of investors still not familiar with exchange traded funds (ETFs)
December 27, 2010--There is a tremendous growth opportunity for providers of exchange traded funds (ETFs) to grow total assets for one simple reason—most potential retail investors have never heard of them. Indeed, latest research from Mintel reveals that more than six in 10 investors say they don't invest in ETFs simply because they "don't know what they are"— and that number was the same for the higher income households that are most likely to be investors.
“Investment companies have a long way to go in getting the word out about ETFs,” states Susan Menke, vice president and behavioral economist at Mintel Comperemedia. “On the other hand, it does show that there is tremendous growth potential in this market.”
Even investors who currently own ETFs don’t feel entirely comfortable with their level of knowledge about the products. Mintel’s data shows that only about half (54%) of ETF owners feel they are “very knowledgeable” when it comes to ETF investing. It seems owners of both mutual funds and individual stocks are even more befuddled, with just 17% of existing investors in each of these categories reporting they feel comfortable with investing in ETF products.
“ETFs really only burst onto the scene in the last few years, and obviously have not penetrated well into some potential markets,” adds Susan Menke. “One reason is that they are not commonly offered in qualified plans such as 401Ks, but even those who invest in non-retirement accounts are still quite unfamiliar with this newer type of investment.”
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Source: Mintel
Rydex files with the SEC
December 27, 2010--Rydex has filed a post effective amendemnt, registration statement with the SEC.
view filing
Source: SEC.gov
JP Morgan files with the SEC
December 27, 2010--JP Morgan has filed an amended application for exemptive relief with the SEC.
view filing
Source: SEC.gov
Backlash over use of Fed crisis cash
December 27, 2010--One of the big surprises when the US Federal Reserve was forced to publish details of the loans it made during the the 2007-2010 financial crisis was the heavy use of its schemes by foreign banks.
This prompted a political backlash in the US.
“We’re talking about huge sums of money going to bail out large foreign banks,” said Bernie Sanders, the independent senator from Vermont. “Has the Federal Reserve of the United States become the central bank of the world?”
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Source: FT.com
DB Global Equity Index & ETF Research : US ETP Market Weekly Review: The SPY December Effect pushes US ETP assets closer to $1 trillion
December 23, 2010--Market Review
The market remained quiet, but expectant on any development happening in the global markets. While Euro zone leaders gathered to discuss solutions on the debt crisis, and the Chinese Central Bank looked for ways to tame inflation, more positive US economic data was released last week leaning the scale slightly in favor of the US. The S&P 500 was slightly up by 0.28%, and the MSCI World increased by 0.1%, and the MSCI EM did alike by 0.06%.
At the same time, the gold price in USD was down by 0.76% and the USD appreciated 0.29% against the EUR. Total US ETP flows experienced their largest year-to-date-weekly inflows of $13.6 bn vs $9.7 bn inflows the previous week. The weekly average ETP flows stands at $2.5 bn year to date. US ETPs AUM reached a new all-time high of $993 bn, getting closer to the $1 trillion year end mark.
Equity ETP flows: The SPY December Effect overflows the week
Equity ETPs recorded another massive $14.1 bn in inflows following the $10.4 bn in inflows in the previous week. Equity inflows were mainly driven by the SPY December Effect, which concentrated $13 bn in inflows in the last two days of the previous week, Figure 1. This pattern has been repeated in the last 4 Dec/Jan cycles and concentrates the largest inflows in two days, usually close to the end of the week before the Holidays week, Figure 2. For more details, please refer to the special commentary we published in our US weekly report dated December 9th.
Equity Style ETPs also received healthy inflows of $1.5 bn, distributed among Growth, Value and Dividend ETPs, topping $12.2 bn in inflows year to date.
Fixed Income ETP flows keep on bleeding
Fixed Income ETPs experienced their largest weekly outflows YTD. The assets flight was $1.3 bn vs $0.7 bn outflows on the previous week. Inflows to the debt related asset class have been stagnant for the last month, while flat or outgoing flows have been gaining momentum. In addition, last week no investment segment experienced inflows. Corporates ETPs recorded the largest outflows ($593 mm), followed by ETPs tracking broad benchmarks ($439 mm). This data strongly supports that the 2-year rush-to-safety we experienced since late 2008 has ended and that investors are shifting to riskier assets in a pursuit of higher returns. Fixed Income ETPs YTD-cumulative flows dropped to $32.9 bn, $2.4 bn down from its peak on November 12th.
Commodity ETP flows suggest that investors still trust the golden metal
Concerns regarding a rate hike in China, plus higher yields in the US kept putting pressure on the commodity environment. Nevertheless, commodity ETPs received $987 mm in fresh money during the last week, vs $259 mm in outflows on the previous week. Gold ETPs recovered their supremacy, at least for last week, adding $768 mm in new cash, followed by Natural Gas ETPs with $154 mm in inflows. On the outflows side, Crude Oil ETPs recorded the largest figure with $71 mm.
New Launch Calendar
After two busy weeks of ETP launching activity, the launch calendar entered into holidays recess. No new listings in the previous week.
Turnover Review
US ETP Avg. Daily Turnover dropped 5.8% totaling $60 bn at the end of the week. Equity ETPs registered the largest absolute decrease with $3.4 bn or -6.1% week over week.
Assets Under Management (AUM) Review
The SPY December Effect pushed US ETP assets to a new record high. Overall assets rose by 1.3%, reaching $993 bn at the end of the week. Year to date US ETPs AUM have increased $212 bn or 27.1%. ETNs assets, which are not included in our report, toped $13.6 bn at the end of the last week.
To request a copy of the report
Source: Deutsche Bank Global Equity Index & ETF Research
Senior Supervisors Group Issues Report on Risk Appetite Frameworks and IT Infrastructure
December 23, 2010--Senior financial supervisors from 10 countries — collectively, the Senior Supervisors Group (SSG) — today issued a report that evaluates how financial institutions have progressed in developing formal risk appetite frameworks and in building out highly developed IT infrastructures and firm wide data aggregation capabilities.
The report — Observations on Developments in Risk Appetite Frameworks and IT Infrastructures — concludes that while firms have made progress in developing risk appetite frameworks and have begun multi-year projects to improve IT infrastructure, considerably more work must be done to strengthen these practices. In particular, the aggregation of risk data remains a challenge, despite its criticality to strategic planning, decision making, and risk management.
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Source: SEC.gov
Standard & Poor's Announces Changes In The S&P/TSX Venture Composite Index
December 22, 2010--Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Wednesday, December 22, 2010:
Avion Gold Corporation (TSXVN:AVR) will be removed from the index. The company will graduate to trade on the TSX under the same ticker symbol.
Shear Minerals Ltd. (TSXVN:SRM) will trade under the new name Shear Diamonds Ltd. The shares will be consolidated on a 1-for-10 basis. There is no change to the ticker symbol but the new CUSIP number will be 82086A 10 2. Please note this change is effective after close Wednesday, December 29, 2010.
Merit Mining Corp. (TSXVN:MEM) will trade under the new name Huakan International Mining Inc. The new ticker symbol will be "HK" and the new CUSIP number will be 44330J 10 7. There is no consolidation of capital.
Company additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the company.
Source: Standard & Poors
Fee Rate Advisory #5 for Fiscal Year 2011
December 22, 2010-- Today the President signed H.R. 3082, the continuing resolution that will fund federal agencies including the Securities and Exchange Commission for approximately two more months. H.R. 3082 stipulates that it shall be deemed the Commission's "regular appropriation" for FY 2011, and therefore will trigger changes in the rates of fees collected by the SEC.
Accordingly, effective Dec. 27, 2010, the Section 6(b) fee rate applicable to the registration of securities, the Section 13(e) fee rate applicable to the repurchase of securities, and the Section 14(g) fee rate applicable to proxy solicitations and statements in corporate control transactions will increase from their current rate of $71.30 per million dollars to a new rate of $116.10 per million dollars. The Section 6(b) rate is also the rate used to calculate the fees payable with the Annual Notice of Securities Sold Pursuant to Rule 24f-2 under the Investment Company Act of 1940.
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Source: SEC.gov
PowerShares files with the SEC
December 22, 2010--PowerShares has filed a first amended and restated application for exemptive relief with the SEC for "funds of funds".
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Source: SEC.gov
RiverPark Advisor files with the SEC
December 22, 2010--RiverPark has filed an application for exemptive relief with the SEC.
view filing
Source: SEC.gov
