Americas ETP News
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Larry Fink is wrong, leveraged ETFs are 'sound': Pro
May 31, 2014--BlackRock CEO Larry Fink was wrong when he slammed leveraged exchange-traded funds, Luciano Siracusano, chief investment strategist at Wisdom Tree Investments, told CNBC Thursday.
"The structure is sound. They've been tested, just like fixed-income ETFs have been tested during stress, and they've held up very well," he said in an interview with "Closing Bell."
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Source: CNBC
State Street to Open Active ETF Run by Jeffrey Gundlach
May 31, 2014--State Street (STT) Corp. and Jeffrey Gundlach's DoubleLine Capital LP are teaming up to open their first actively managed bond exchange-traded fund to compete with Bill Gross's Pimco Total Return ETF.
SPDR DoubleLine Total Return Tactical ETF will invest in fixed-income securities and be run by Gundlach and Philip Barach, Boston-based State Street said yesterday in a filing with the U.S. Securities and Exchange Commission. The fund, if approved, would list on the NYSE Arca exchange.
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Source: Bloomberg
NASDAQ OMX Lists PowerShares Multi-Strategy Alternative Portfolio ETF
Multi-Strategy ETF Began Trading on May 29, 2014
May 30, 3024--NASDAQ OMX today announced that PowerShares launched a new exchange traded fund (ETF), PowerShares Multi-Strategy Alternative Portfolio ETF (Symbol:LALT), which is listed on The NASDAQ Stock Market(R) (NASDAQ(R)). LALT began trading on NASDAQ on Thursday, May 29, 2014.
"One of the primary goals for investors that use alternative strategies is to minimize exposure to equity and bond markets, and to achieve better risk-adjusted returns compared to portfolios consisting only of traditional asset classes, "said Dan Draper, Invesco PowerShares Managing Director of Global ETFs. "LALT is designed to help investors reach their portfolio objectives by reducing the volatility of returns and mitigating the risk of drawdowns. Invesco PowerShares is committed to providing innovative tools to help investors achieve their goals of wealth accumulation and capital preservation."
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Source: Invesco PowerShares:
S&P 500 sets another record closing high on growth bets
May 29, 2014--The S&P 500 index climbed to its third record closing high in four sessions on Thursday as traders shrugged off data that showed the economy shrank in the first quarter and bet on improvement in the second quarter.
New claims for unemployment benefits fell more than expected last week, pointing to a strengthening labor market and giving investors a reason to buy U.S. stocks. Data from the Commerce Department showed that gross domestic product contracted for the first time in three years in the first quarter, although signs indicated it has rebounded.
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Source: Reuters
For first time in 3 years, U.S. economy shrinks
U.S. GDP shrinks in first quarter amid severe weather
May 29, 2014--The U.S. economy contracted for the first time in three years in the first quarter as it buckled under a severe winter, but there are signs it has rebounded and economists say it could grow as much as 4 percent in the current quarter.
he Commerce Department on Thursday slashed its estimate of gross domestic product to show the economy shrank at a 1.0 percent annual rate.
The worst performance since the first quarter of 2011 reflected a far slower pace of inventory accumulation and a bigger than previously estimated trade deficit.
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Source: Chicago Tribune
Morningstar Publishes Research Report about Tracking Efficiency in Chinese Equity Exchange-Traded Funds
May 29, 2014--Morningstar Asia Limited, a subsidiary of independent investment research firm Morningstar, Inc. (NASDAQ: MORN), has published a new research report, "On the Right Track: Measuring Tracking Efficiency in Chinese Equity ETFs," which examines the factors that influence the tracking efficiency of Chinese equity exchange-traded funds (ETFs).
The report is an extension of Morningstar's February 2013 research paper about measuring tracking efficiency in European ETFs.
Authored by Morningstar's global passive strategies research team, the report examines 33 ETFs listed in markets around the world that track the five major Chinese equity indices.
Morningstar analysts used two metrics to evaluate the tracking efficiency of these funds:
Tracking error: the measure of volatility of a fund's return in relation to its benchmark; and
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Source: Morningstar
Horizons ETFs and Fiduciaria Bogota S.A. launch an ETF that tracks S&P Colombia Select Index
May 29, 2014--Horizons ETFs Management (LATAM) LLC ("Horizons LatAm"), a member of the Horizons ETFs Group, is pleased to announce the launch of its second Latin American exchange traded fund ("ETF"), the Fondo Bursátil Horizons Colombia Select de S&P (the "Horizons Colombia Select ETF"), which provides investors with exposure to the S&P Colombia Select Index (the "Index").
The Horizons Colombia Select ETF begins trading today on the Bolsa de Valores de Colombia ("BVC") under the ticker symbol HCOLSEL
The Horizons Colombia Select ETF will seek to replicate the returns of the Index. S&P Dow Jones Indices LLC ("S&P") designed the Index to provide exposure to the largest and most liquid domestic stock issuers in Colombia. S&P's selection universe for the Index is based on all the securities in the S&P Colombia BMI that trade on the BVC
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Source: MarketWatch
DB-Synthetic Equity & Index Strategy-North America-US ETF Market Weekly Review-ETP assets higher by 5.0% YTD
May 28, 2014--Data in this report is as of Friday, May 23
Market and Net Cash Flows Review
The US (S&P 500) edged higher by 1.21%; while, outside the US, the MSCI EAFE (in USD) and the MSCI EM (USD) rose by 0.38% and 1.12%, respectively. In the meantime, performance was mostly positive across US sectors; the Consumer Discretionary (+2.06%) and the Technology (+1.81%) sectors recorded the largest weekly gains; meanwhile, the Utilities (-0.91%) and the Consumer Staples (-0.03%) sectors recorded the only decreases.
The DB Liquid Commodity Index rose by 0.66%; in the meantime, the Agriculture sector (DB Diversified Agriculture Index) and Gold fell by 0.64% and 0.07%, respectively; while, the WTI Crude Oil and Silver prices rose by 2.28% and 0.47%, respectively. Moving into other asset classes, the 10Y US Treasury Yield rose by 2bps ending at 2.54%. Last but not least, Volatility (VIX) dropped by 8.68% during the same period.
The total US ETP flows from all products registered $5.2bn (+0.3% of AUM) of inflows during last week vs. $6.5bn (+0.4%) of inflows the previous week, setting the YTD weekly flows average at +$1.9bn (+$40.3bn YTD in total cash flows).
Equity, Fixed Income and Commodity ETPs experienced flows of -$0.9bn (-0.1%), +$6.3bn (+2.2%) and -$0.3bn (-0.5%) last week vs. +$5.6bn (+0.4%), +$0.8bn (+0.3%) and -$35mn (-0.1%) in the previous week, respectively.
Among US sectors, Financials (+$0.7bn, +1.0%) and Energy (+$0.4bn, +1.1%) received the top inflows, while Utilities (-$0.4bn, -4.0%) and Consumer Staples (-$0.1bn, -1.2%) experienced the largest outflows.
Top 3 ETPs & ETNs by inflows: IEF (+$3.3bn), UST (+$1.3bn), QQQ (+$1.0bn)
Top 3 ETPs & ETNs by outflows: IVV (-$1.7bn), IWM (-$1.5bn), SSO (-$0.9bn)
New Launch Calendar: First RQFII ETF to access small-cap China A-share
There was one new ETF listed during last week. The new product listed by Deutsche AWM on the NYSE Arca is the first ETF to offer investors direct access to small-cap China A-share equities.
Turnover Review: Floor activity decreased by 16.5%
Total weekly turnover decreased by 16.5% to $245.5bn vs. $294.1bn from the previous week. Furthermore, last week's turnover level was 14.2% below last year's weekly average. Fixed Income ETPs turnover increased by $3.6bn (+22.9%); meanwhile, Equity and Commodity ETPs turnover decreased by $51.7bn (-19.1%) and $0.1bn (-2.7%), respectively.
Assets under Management (AUM) Review: Assets increased by $20.5bn
US ETP assets rose by $20.5bn (+1.2%) totaling $1.761 trillion at the end of the week. As of last Friday, US ETPs had accumulated an asset growth of +5.0% YTD. Assets for Equity, Fixed Income and Commodity ETPs moved +$14.2bn, +$6.3bn and -$0.2bn during last week, respectively.
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Source: Deutsche Bank-Synthetic Equity & Index Strategy-North America
MarketAxess and BlackRock Partner to Provide iShares Fixed Income Exchange Traded Fund (ETF) Information and Electronic Basket Trading Technology for ETF Market Makers
May 28, 2014--MarketAxess Holdings Inc. (Nasdaq:MKTX), the operator of a leading electronic trading platform for fixed income securities and provider of market data and post-trade services for the global fixed-income markets, and BlackRock (NYSE:BLK) today announced the launch of iShares fixed income exchange traded fund (ETF) information and basket trading technology on MarketAxess.
The consolidated iShares content on the MarketAxess trading system now enables ETF market makers to efficiently trade baskets of iShares ETF constituent bonds using MarketAxess' patented list trading functionality.
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Source: Wall Street Journal
Miracle Mile Advisors Partners with TD Ameritrade in ETF-Based 401k Program
May 28, 2014--Miracle Mile Advisors, one of California's fastest-growing independent investment advisory firms, has partnered with TD Ameritrade to launch a modern 401k platform delivering highly customized investment options using a universe of low-cost ETFs.
This corporate retirement offering provides access to over 800 ETFs covering a variety of asset classes from some of the most trusted firms in the industry. The all-in annual fees of the plan are projected to be slightly less than 1%; compared to many traditional 401k plans that charge over 2.5%.
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Source: Miracle Mile Advisors
