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SIFMA Releases Mid-Year 2013 Economic Forecast
July 24, 2013-SIFMA's Economic Advisory Roundtable today released its outlook for the second half of 2013 and predictions for 2014, forecasting that the economy will grow at a rate of 1.7 percent in full-year 2013 and 2.6 percent in 2014.
"Our Roundtable maintains their forecast for moderate economic growth for 2013 and 2014, with upside and downside drivers varied among respondents," said Kyle Brandon, managing director and director of research at SIFMA. "Generally, the continued housing recovery and low energy prices were seen as positive drivers of growth, while external factors such as Europe and emerging markets featured as the downside risks to the economy."
view the SIFMA Mid-Year 2013 Economic Outlook
Source: SIFMA
PowerShares DWA SmallCap Technical Leaders Portfolio Passes One-Year Mark
PowerShares Momentum ETF Assets Increase Over 50% in 2013
July 24, 2013--Invesco PowerShares Capital Management LLC, a leading global provider of exchange-traded funds (ETFs), today celebrates the one-year anniversary of the PowerShares DWA SmallCap Technical Leaders(TM) Portfolio (DWAS).
Listed July 19, 2012, the PowerShares DWA SmallCap Technical Leaders Portfolio is part of the broad suite of DWA Technical Leaders™ ETFs covering US, developed and emerging market segments.
Since inception, the PowerShares DWA SmallCap Technical Leaders Portfolio (DWAS) has outperformed the Russell 2000 Index market-cap weighted benchmark by a margin of 9.44%. For the one-year period ending July 19, 2013, DWAS achieved a total return of 41.84% based on NAV, outperforming the Russell 2000 Index which had a total return of 32.40% during the same period. (Note: total return figures include all dividends).1
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Source: Invesco PowerShares Capital Management LLC
Direxion Announces Forward, Reverse Splits on 9 ETFs
July 24, 2013--Direxion, a leader in alternative investment solutions, has announced it will execute reverse share splits in August for seven of its leveraged exchange-traded funds ("ETFs"), as well as forward share splits for another two leveraged ETFs.
The total market value of the shares outstanding will not be affected as a result of these splits, except with respect to the redemption of fractional shares, as outlined below.
Reverse Splits
Direxion will execute 1-for-4 reverse splits of the shares of the Direxion Daily India Bull 3X Shares (INDL), Direxion Daily Real Estate Bear 3X Shares (DRV),
view more UBS's Susi to Join KCG in August view more OSC Announces Investment Funds Product Advisory Committee Members for 2013-2015 view more
Krane Funds Advisors Launches China Five-Year Plan ETF KraneShares CSI China Five-Year Plan ETF offers a unique strategy for gaining exposure to China. Every five years China announces its fiscal and domestic spending plan for targeted growth industries. The fund’s underlying index, the CSI Overseas China Five-Year Plan Index, focuses on companies in the targeted sectors of China’s 12th Five-Year Plan, including technology, domestic consumption, clean energy, industrial and healthcare. In contrast, other China benchmarks tend to be dominated by financial, energy, and telecom sectors and by large, state-owned enterprises. view more Nasdaq Cancels Trades in Five VIX Securities After Late Swings view more U.S. court rejects appeal over leveraged funds' volatility view more/a> DB-Synthetic Equity & Index Strategy-North America-US ETF Market Weekly Review-Equity dominated the weekly flows with +$11.4bn in new cash
The total US ETP flows from all products registered $11.6bn (+0.8% of AUM) of inflows during last week vs. $16.8bn (+1.1%) of inflows the previous week, setting the YTD weekly flows average at +$3.6bn (+$105.7bn YTD in total cash flows).
Equity, Fixed Income and Commodity ETPs experienced flows of +$11.4bn (+1.0%), +$0.6bn (+0.2%) and -$0.3bn (-0.5%) last week vs. +$17.5bn (+1.5%), -$0.4bn (-0.2%) and -$0.6bn (-0.8%) in the previous week, respectively.
Among US sectors, Utilities (+$0.5bn, +5.9%) and Financials (+$0.5bn, +1.0%) received the top inflows, while Materials (-$0.2bn, -2.2%) and Consumer Staples (-$0.2bn, -1.5%) experienced the largest outflows.
Top 3 ETPs & ETNs by inflows: SPY (+$5.1bn), QQQ (+$1.5bn), HYG (+$0.8bn)
Top 3 ETPs & ETNs by outflows: DIA (-$0.5bn), USMV (-$0.4bn), TLT (-$0.3bn)
New Launch Calendar: target-maturity, factors and short strategies
Turnover Review: Floor activity decreased by 17.2%
Assets under Management (AUM) Review: assets increased by 1.6%
request report Morgan Stanley-US ETF Weekly Update ETFs posted net inflows of $11.5 bln last week, the fourth consecutive week of net inflows
13-week flows remain mostly positive among asset classes; combined $49.0 bln in net inflows
US-Listed ETFs: Estimated Largest Flows by Individual ETF
SPDR S&P 500 ETF (SPY) posted net inflows of $5.1 bln, the most of any ETF
US-Listed ETFs: Short Interest
Data Unchanged: Based on data as of 6/28/13
SPDR S&P 500 ETF (SPY) had the largest increase in USD short interest at $2.0 bln
The average shares short/shares outstanding for ETFs is currently 4.6%
US-Listed ETFs: Most Successful Recent Launches by Assets
Source: Bloomberg, Morgan Stanley Wealth Management ETF Research. Data estimated as of 7/19/13 based on daily change in share counts and daily NAVs.
$8.4 bln in total market cap of ETFs less than 1-year old
The top 10 most successful launches make up 67% of the market cap of ETFs launched over the past year request report
Source: Direxion
July 23, 2013--KCG Holdings, the newly formed group of Knight Capital and Getco, has landed another top equities professional, Charles Susi.
Susi will be joining in mid-August, a KCG spokesperson confirmed. He will head up product development for the firm's client execution services group and will focus on strategy, design and implementation of new products. This is a new and senior role. Susi will report to Greg Tusar and Albert Maasland, co-heads of global execution services at KCG.
Source: Traders Magazine
July 23, 2013--The Ontario Securities Commission (OSC) announced today the membership of the Investment Funds Product Advisory Committee (IFPAC) for the 2013-2015 term.
In an environment of rapid product growth and increasingly complex investment fund products, OSC staff recognize the unique perspective market participants may have in identifying and anticipating market and product trends. The IFPAC will continue to advise OSC staff on emerging product developments and innovations occurring in the investment fund industry. The committee will discuss the impact of these developments, as well as emerging issues.
Source: OSC
KraneShares CSI China Five-Year Plan ETF offers investors a unique strategy for gaining exposure to China
July 23, 2013--Krane Funds Advisors LLC, a provider of China-focused Exchange Traded Funds (ETFs), today announced the launch on the New York Stock Exchange of KraneShares CSI China Five-Year Plan ETF (NYSE ticker: KFYP), a new ETF that provides exposure to the focus industries highlighted in China's 12th Five Year Plan.
Unique Strategy
Source: KraneShares
July 22, 2013--Nasdaq OMX Group Inc. (NDAQ) is canceling trades involving five exchange-traded securities tracking equity volatility from after today's market close.
The notes and funds are linked to the Chicago Board Options Exchange Volatility Index, or VIX (VIX), which measures options on the Standard & Poor’s 500 Index. Trades executed between 4:15 p.m. and 4:16 p.m. more than 10 percent away from the market price will be voided, said Nasdaq.
Source: Bloomberg
Lawsuit brought by investors in 44 ProShares ETFs
2nd Circuit finds risks properly disclosed
July 22, 2013--July 22, 2013--In a decision that reminds investors about the potential dangers of leverage, a federal appeals court on Monday rejected a lawsuit challenging how risks were disclosed by a group of exchange-traded funds that aimed to magnify market movements.
The 2nd U.S. Circuit Court of Appeals said ProShares Advisors LLC was not liable to investors who claimed they were misled about the risks of holding on to 44 of its leveraged ETFs for more than one day.
Source: Reuters
July 22, 2013--Data in this report is as of Fri, July 19th
Market and Net Cash Flows Review
Markets moved higher during last week. The US (S&P 500) increased by 0.71%; while, outside the US, the MSCI EAFE (in USD) and the MSCI EM (USD) rose by 1.31% and 0.62%, respectively.
Moving on to other asset classes, the 10Y US Treasury Yield dropped by 11 bps last week; meanwhile the DB Liquid Commodity Index was up by 0.21%. Similarly, the Agriculture sector (DB Diversified Agriculture Index), the WTI Crude Oil and Gold prices advanced by 1.09%,1.98% and 0.81%, respectively; while Silver prices retreated by 2.13%. Last but not least, Volatility (VIX) dropped by 9.39% during the same period.
There were four new ETFs listed during the previous week on the NYSE Arca. Guggenheim added two new target-maturity IG Corporate bond ETFs with maturities in 2021 (BSCL) and 2022 (BSCM); Meanwhile, BlackRock launched QUAL, which offers exposure to US equity based on fundamental factors; Last but not least, AdvisorShares launched an active fund (HDGI) which seeks capital appreciation through short sales of international equity securities.
US ETP assets rose by $23.9bn (+1.6%) totaling $1.515 trillion at the end of the week. As of last Friday, US ETPs had accumulated an asset growth of 13.6% YTD. Assets for Equity, Fixed Income and Commodity ETPs moved +$21.4bn, +$2.3bn, +$0.3bn during last week, respectively.
Source: Deutsche Bank-Synthetic Equity & Index Strategy-North America
July 22, 2013--US ETF Weekly Update
Weekly Flows: $11.5 Billion Net Inflows
Fourth Consecutive Week of Net Inflows
ETF Assets Stand at $1.5 Trillion, up 13% YTD
Four ETF Launches Last Week
US-Listed ETFs: Estimated Flows by Market Segment
Over the last four weeks, ETFs have generated net inflows totaling $37.4 bln
US Equity ETFs had a combined $9.6 bln in net inflows last week; US Custom ETFs was the only segment in this group to
exhibit net outflows
ETF assets stand at $1.5 tln, up 13% YTD; $103.7 bln net inflows YTD
US Large-Cap ETFs have generated net inflows of $25.5 bln over the last 13 weeks, the most of any category we
measured; specifically, the SPDR S&P 500 ETF (SPY) has accounted for 59% of the net inflows in this space
Despite a spike in interest rates on the long end of the curve, net outflows in Fixed Income ETFs have been modest over the last
13 weeks ($823 mln in net outflows) and five of the last 13 weeks Fixed Income ETFs actually generated net inflows
The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) generated net inflows of $777 mln last week and has now posted net
inflows four of the last five weeks; Morgan Stanley Wealth Management’s Fixed Income Strategists have recently become slightly
more constructive (not positive) on the space given the pullback we witnessed in May/June
The SPDR Gold Trust (GLD) has not posted a net inflow in 33 weeks; over this time period, GLD has exhibited net outflows of $19.8
bln, including $275 mln last week, and its market cap has shrunk to $38.8 bln
Following SPY, the iShares Russell 2000 ETF (IWM) has posted the second most net inflows over the last 13 weeks at $4.3 bln;
small-cap stocks have meaningfully outperformed their larger-cap counterparts from a performance standpoint YTD
SPY’s shares short are at their highest level since 4/15/13 and nearly 10% above their one-year average
The iShares MSCI Emerging Markets ETF (EEM) shares short declined 28% from their all-time high set last period
Aggregate ETF USD short interest decreased by $2.9 bln over the period ended 6/28/13
The CurrencyShares Euro Trust (FXE) continues to be one of the most heavily shorted ETFs as a % of shares outstanding; interestingly, over the past year, FXE has actually posted a 6.3% market price return
Based on multiple borrowings and the ability to continuously create new shares, shares short as a % of shares outstanding can exceed 100% (only six ETFs exhibited shares short as a % of shares outstanding greater than 100%)
International-Emerging ETFs account for 27% of ETFs launched over the past year; specifically, the iShares Core MSCI Emerging Markets ETF (IEMG) has grown consistently since inception and in less than a year is the 10th largest emerging market equity ETF
Issuance has been light in 2013 relative to the past three years; 74 new ETF listings and 30closures/delistings YTD
Source: Morgan Stanley
