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Fidelity to launch own ETF play but plans to lean on partners
Fidelity to launch 10 sector ETFs on Thursday
Firm administers $125 billion in ETF assets
Executive sees more ETF use in packaged products
October 23, 2013--As Fidelity Investments prepares to launch its first full lineup of sector exchange-traded funds on Thursday, the Boston-based company is jumping in much later than many of its peers and is not trying to be the largest provider of ETFs.
Instead, Fidelity, which currently has $125 billion in ETF assets on its platform largely through third-party ETF offerings, is just as content to be an administrator of ETFs created by rivals, such as BlackRock Inc, as it is launching its own ETFs that complement what is already in the market.
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Source: Reuters
S&P MILA 40 Index Licensed to Horizons ETFs Group
Index to Provide Underlying Index Basis for the First Colombian ETF Focused on the Andean Region
October 23, 2013--S&P Dow Jones Indices today announced that it has licensed the S&P MILA 40 Index to Horizons ETFs Group to serve as the basis for an exchange traded fund (ETF).
The ETF will be listed on the Bolsa de Valores de Colombia (BVC) and will be the first Andean equity focused ETF available in Colombia.
The S&P MILA 40 Index, launched in 2011, was the first in a series of indices for Latin America's second-largest market. The Index gauges the returns of the largest and most liquid stocks trading on the Mercado Integrado Latinoamericano (MILA) platform, an integrated trading venture formed by the Chile, Colombia and Peru stock exchanges.
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Source: Wall Street Journal
ISE Gemini(TM) Surpasses 500,000 Contracts in a Trading Day
October 23, 3013--The International Securities Exchange (ISE) today announced that ISE GeminiTM surpassed two milestones for the first time by trading over 500,000 contracts (actual: 601,901 contracts) in a single day, and also accounting for over 3 percent (actual: 3.3%) of equity and ETF options market share.
ISE Gemini has a total of 500 listings and plans to rollout an additional 200 names by the end of October.
Since launching on August 5, 2013, ISE Gemini has offered customers a unique maker-taker pricing model combined with ISE’s patented pro-rata and customer priority market structure
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Source: International Securities Exchange (ISE)
IMF Country Report-Brazil: Selected Issues
October 23, 2013--A. Background-Re-Evaluating Potential
1. Potential growth-how quickly the economy can grow without triggering higher inflation and external imbalances-are often critical inputs into the policy-making process.
For an inflation targeting central bank, as in Brazil, an assessment of the output gap-the difference
between actual and potential output-will likely help determine monetary policy settings.
Similarly, fiscal authorities should also take these variables into account when projecting expenditures and
revenues, establishing the structural fiscal position, measuring discretionary fiscal impulse, and setting objectives for fiscal policy that ensure public debt sustainability over the long run.
Notwithstanding its importance, potential growth is unobservable and for Brazil remains subject to much uncertainty.
view the IMF Country Report-Brazil: Selected Issues
Source: IMF
Treasury International Capital Data for August
October 22, 2013--The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for August 2013. The next release, which will report on data for September 2013, is scheduled for November 18, 2013.
The sum total in August of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a monthly net TIC outflow of negative $2.9 billion. Of this, net foreign private outflows were negative $15.1 billion, and net foreign official inflows were $12.1 billion.
Foreign residents decreased their holdings of long-term U.S. securities in August; net sales were $8.5 billion. Net sales by private foreign investors were $3.7 billion, and net sales by foreign official institutions were $4.8 billion.
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Source: US Department of the Treasury
ETF palette set to remain fragmented
October 22, 2013--Europe's fragmented exchange-traded fund landscape is shifting with the number of exchanges on which ETFs are listed set to expand with the arrival of Bats Chi-X Europe's new pan-European platform next month.
The new venue, which has so far secured two listings from BlackRock, is the latest entrant in Europe, where the number of exchanges on which products trade is significantly higher than the US
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Source: Financial News
NASDAQ Basic Surpasses 1,000 Customers
Real-Time Quote & Trade Data Solution Embraced by Tens of Thousands of Financial Advisors, Wealth Managers and Individual Investors
October 21, 2013--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced that NASDAQ BasicSM has gained a tremendous following in the retail brokerage arena since its launch in 2009.
To date, more than 1,000 firms have selected NASDAQ Basic as their source for real-time quote and trade data for all US-Listed equities.
A low cost alternative to other Level 1 offerings, NASDAQ Basic has gained widespread acceptance among sell-side banks, including nine out of the top 10 U.S. banks as well as tens of thousands of financial advisors, wealth managers and active investors.
more info
Source: NASDAQ OMX
DB-Synthetic Equity & Index Strategy-North America-US ETF Market Weekly Review-US ETP assets reach $1.6 trillion milestone fueled by market rally
October 22, 2013--Data in this report is as of Fri, October 18
Market and Net Cash Flows Review
Markets rallied last week on US debt deal. The US (S&P 500) edged higher by 2.42%; while, outside the US, the MSCI EAFE (in USD) and the MSCI EM (USD) rose by 2.77% and 1.88%, respectively. In the meantime, performance was positive across US sectors. Energy (+3.12%) and Financials (+2.99%) recorded the biggest gains. The DB Liquid Commodity Index rose by 0.41%; similarly, the Agriculture sector (DB Diversified Agriculture Index), Gold and Silver prices rose by 0.43%, 3.46% and 2.66%, respectively; while, the WTI Crude Oil fell by 1.19%. Moving into other asset classes, the 10Y US Treasury Yield dropped 10bps ending at 2.60%.
Meanwhile on the FX side the USD strengthened against all major currencies. The Euro, the British Pound, the Swiss Franc and the Japanese Yen depreciated 1.06%, 1.32%, 1.12% and 0.87%, respectively. Last but not least, Volatility (VIX) dropped by 17.05% during the same period.
The total US ETP flows from all products registered $14.7bn (+0.9% of AUM) of inflows during last week vs. flat flows the previous week, setting the YTD weekly flows average at +$3.3bn (+$139.8bn YTD in total cash flows).
Equity, Fixed Income and Commodity ETPs experienced flows of +$15.2bn (+1.2%), -$0.1bn (-0.0%) and -$0.5bn (-0.8%) last week vs. +$1.1bn (+0.1%), -$0.7bn (-0.3%) and -$0.7bn (-1.0%) in the previous week, respectively.
Among US sectors, Financials (+$0.8bn, +1.4%) and Information Technology (+$0.5bn, +1.9%) received the top inflows, while Utilities (-$0.3bn, -3.9%) experienced the only outflows.
Top 3 ETPs & ETNs by inflows: SPY (+$7.9bn), QQQ (+$1.4bn), XLF (+$0.6bn)
Top 3 ETPs & ETNs by outflows: BIL (-$0.6bn), DIA (-$0.5bn), IDU (-$0.4bn)
New Launch Calendar: Short term IG & HY, leveraged, currency hedged, IPOs
There were four new ETFs and one new ETN listed during the previous week. The new products offer exposure to short term US investment grade and high yield corporate debt, currency hedged exposure to Germany, leveraged US large caps and new company listings.
Turnover Review: Floor activity decreased by 6.2%
Total weekly turnover decreased by 6.2% to $328.7bn vs. $350.2bn from the previous week; However, last week's turnover level was 21.9% over last year's weekly average. Fixed Income ETPs turnover increased by $0.7bn (+4.2%); while Equity and Commodity ETPs turnover decreased by $18.9bn (-6.0%) and $2.3bn (-20.8%), respectively.
Assets under Management (AUM) Review: assets reach $1.6 trillion milestone
US ETP assets rose by $47.4bn (+3.0%) totaling $1.605 trillion at the end of the week. As of last Friday, US ETPs had accumulated an asset growth of +20.4% YTD. Assets for Equity, Fixed Income and Commodity ETPs moved +$44.5bn, +$1.2bn and +$1.5bn during last week, respectively.
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Source: Deutsche Bank-Synthetic Equity & Index Strategy-North America
First Asset Launches US Value and US Momentum ETFs in Canadian Market Based on Morningstar Indices
Canadian investors now have a unique opportunity to access the US market with Morningstar Index powered ETFs
October 22, 2013--Building on the success of its top performing exchange traded funds(1) (ETFs) powered by Morningstar Canadian equity indices, First Asset Investment Management Inc. (First Asset, an independent Canadian investment management company, is pleased to announce the launch of two new equity ETFs replicating Morningstar U.S. equity indices, which will commence trading today on the Toronto Stock Exchange (TSX): First Asset Morningstar US Momentum Index ETF (TSX:YXM) and First Asset Morningstar US Value Index ETF (TSX:XXM).
XXM and YXM replicate indexes that apply Morningstar CPMS rules-based methodologies that are similar to those used in both First Asset Morningstar Canada Value Index ETF (TSX:FXM), which has a 28.8% 1-year return (21.3% S.I.), and First Asset Morningstar Canada Momentum Index ETF (TSX:WXM), which has a 17.9% 1 year return (15.9% S.I.)(2).
(NOT FOR DISSEMINATION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION TO THE UNITED STATES OF AMERICA)
Source: First Asset
Fidelity launches cheaper line of ETFs
October 22, 2013--Fidelity Investments is set to make a splash with its first attempt at entering the exchange-traded fund market with sector ETFs that undercut rivals Vanguard Group Inc. and State Street Global Advisors on price.
Fidelity plans to launch 10 sector ETFs, covering all the major sectors, on Thursday that cost just 12 basis points each, according to a filing with the Securities and Exchange Commission. Vanguard and State Street charge 14 basis points and 18 basis points, respectively, for similar ETFs.
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Source: Investment News
