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SSGA-US ETF Snapshot: April 2013
May 14, 2013--1,252 Exchange Traded Funds (ETFs)-with assets totaling $1.5TN-were managed by 37 ETF managers as of April 30, 2013.
Month over month, ETF assets increased $24.1BN, up 1.7%.
Gains of $9.0BN in the Fixed Income category and $8.0BN in the International-Developed category drove a 1.7% rise in assets.
STATE STREET HIGHLIGHTS, APRIL 2013
Income & Total Return: Solutions for a Low Yield Environment
With many asset classes generating historically low yields on an absolute basis, caution must be given toward chasing yield at the expense of total return. In fact, the highest yielding asset classes have tended to be the poorest performers in the subsequent periods. At this stage, with a global economy that is continuing to recover, albeit slower than many would hope, investors should consider a full suite of income-generating assets, but should do so with an eye toward globalizing their portfolios and focusing on more than just current yield.
ETF Industry Detail
Asset Classes-Overall
The S&P 500® Index 1.9%, while the MSCI EAFE® gained 5.2%. Commodities were negative, with the S&P GSCI® down 4.7% and Gold dropping 8.1%. US Bonds were positive, with the Barclays US Treasury Index and the Barclays US Aggregate Index increasing 0.9% and 1.0%, respectively.
FLOWS
ETF flows neared $4.3BN in April. The Fixed Income category had a leading $6.3BN of inflows, increasing its year-to-date total net flows to $13.4BN. The Commodity category had the most significant outflows during the month of April, with $8.1BN leaving the category.
Manager and Fund Detail
BMO Asset Management Inc. Chooses MSCI as the Basis for 2 ETFs view more Fidelity gets SEC permission to run actively managed ETFs view more Vanguard Launches Emerging Markets Government Bond Index Fund view more TD Ameritrade Launches New ETF Knowledge Center view more Adviser demand started iShares' active engines view more Cambria ETF Trust Launches Shareholder Yield ETF (SYLD) view more CBO-SEC Regulatory Accountability Act Identify alternatives to the proposed regulation that are available.
Further, under the bill, the SEC would be required to review its regulations every five years
to determine whether they are outmoded, ineffective, or excessively burdensome. Using the results of the review, the agency would then need to consider modifying or repealing such rules. view CBO-SEC Regulatory Accountability Act CBOE Wins In S&P Index Dispute Morgan Stanley-US ETF Weekly Update ETFs posted net inflows of $13.8 bln last week; 3rd consecutive week of net inflows
13-week flows were mostly positive among asset classes; combined $48.8 bln in net inflows
US-Listed ETFs: Estimated Largest Flows by Individual ETF
The SPDR S&P 500 ETF (SPY) posted net inflows of $6.0 bln last week, the most of any ETF
US-Listed ETFs: Short Interest
Data Updated: Based on data as of 4/30/13
Energy Select Sector SPDR (XLE) had the largest increases in USD short interest at $972 mln
The average shares short/shares outstanding for ETFs is currently 4.3%
US-Listed ETFs: Most Successful Recent Launches by Assets $6.2 bln in total market cap of ETFs less than 1-year old
The top 10 most successful launches make up 68% of the market cap of ETFs launched over the past year
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The top three managers in the US ETF marketplace were: BlackRock, State Street and Vanguard. Collectively, they account for approximately 83% of the US listed ETF market.
Source: SSgA
May 14, 2013--MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools worldwide, has announced that BMO Asset Management Inc. (BMO AM) has licensed the MSCI Emerging Markets Index and the MSCI EAFE 100% Hedged to CAD Dollars Index for two exchange traded funds (ETFs) for the Canadian market.
The MSCI Emerging Markets Index represents the performance of large and mid cap securities across 21 Emerging Markets countries. The MSCI EAFE 100% Hedged to CAD Dollars Index represents the performance of large and mid cap securities across Developed Markets countries, excluding the US and Canada, and is designed to represent a close approximation of the return from hedging the currency exposures of the constituents of the index in the one month forward market at the end of each month.
Source: MSCI
May 14, 2013--Fidelity Investments said on Tuesday it received permission from U.S. regulators to open its own actively managed exchange-traded funds, as the mutual fund firm seeks to catch up in the faster-growing ETF segment.
Boston-based Fidelity in December filed an application to set up a series of actively managed ETFs with the Securities and Exchange Commission, and the agency approved the request last week, spokesman Jeff Cathie said.
Source: Reuters
May 14, 2013--Subscription Period Begins Today
Vanguard today announced the introduction of Vanguard Emerging Markets Government Bond Index Fund, the company's first international fixed income offering available to U.S. investors.
The fund is now accepting investments during a subscription period that will extend through the end of business on May 30, 2013. During this period, the fund will invest in money market instruments as it accumulates sufficient assets to construct a representative, diversified portfolio. The fund’s ETF shares (VWOB) are scheduled to begin trading in early June.
Source: Reuters
Arms investors with knowledge and insights on ways to build a strategy and choose quality ETFs
May 14, 2013--Building a diversified portfolio of exchange-traded funds (ETFs) just got simpler and more efficient, thanks to the launch of a new ETF Knowledge Center from TD Ameritrade, Inc. ("TD Ameritrade"), a broker dealer subsidiary of TD Ameritrade Holding Corporation.
TD Ameritrade's new ETF Knowledge Center arms retail investors with greater education and information on ETFs, as well as insights on key ETF investment strategies as they relate to current market environments.
Source: TD Ameritrade Holding Corporation
May 13, 2013--iShares sees its new rules-based active exchange traded funds as attractive substitutes for mutual funds at the core of investment adviser-managed portfolios.
In fact, the iShares Enhanced US Large Cap and iShares Enhanced US Small Cap ETFs were built at the request of a consortium of registered investment advisers queried by BlackRock’s ETF unit, says Sue Thompson, head of the RIA and asset manager group for iShares at BlackRock.
Source: FT.com
Newly launched ETF provides investors with an innovative approach to high yield stock investing by calculating dividends, share buybacks and debt reduction
May 14, 2013--The Cambria ETF Trust and its investment manager, Cambria Investment Management, LP, today launched the Cambria Shareholder Yield ETF (Ticker:Ticker::SYLD).
SYLD, listed on the NYSE Arca exchange, is an actively managed ETF comprised of U.S. stocks that have historically ranked among the highest in paying cash dividends, engaging in share buybacks and paying down debt. These three factors are collectively known as "shareholder yield."
Source: Cambria Investment Management
May 13, 2013--H.R. 1062 would expand the amount of analysis performed by the Securities and Exchange Commission (SEC) when developing or amending regulations.
Specifically, the bill would
direct the SEC to:
Assess the significance of the problem the regulation is designed to address;
Determine whether the estimated costs of the proposed regulation justify its
estimated benefits; and
Source: Source: Congressional Budget Office (CBO)
May 13, 2013--The Chicago Board Options Exchange (CBOE) announced today that the Supreme Court of the United States denied the International Securities Exchange's (ISE) petition to review the Illinois Appellate Court's decision that permanently restrained and enjoined ISE from listing or
providing an exchange market for the trading of S&P 500 Index (SPX) and Dow Jones Industrial Average (DJX) options and enjoined OCC from issuing, view more
Source: CBOE
May 13, 2013--US ETF Weekly Update
Weekly Flows: $13.8 Billion Net Inflows
3rd Consecutive Week of Net Inflows
ETF Assets Stand at $1.5 Trillion, up 13% YTD
One ETF Launch Last Wee
US-Listed ETFs: Estimated Flows by Market Segment
Last week’s net inflows of $13.8 bln were the second largest of this year behind the first week of 2013; last week’s net inflows
were led by US Large-Cap ETFs ($8.0 bln)
ETF assets stand at $1.5 tln, up 13% YTD; $78.0 bln net inflows YTD
Despite talk of a “great rotation” to equity from fixed income we have yet to see it materialize in ETFs; Fixed Income ETFs have
generated net inflows of $16.5 bln over the last 13 weeks, the most of any category we measured
Commodity ETFs have posted net outflows of $15.5 bln over the last 13 weeks; in particular, one ETF, the SPDR Gold Trust
(GLD), has exhibited net outflows of $13.4 bln over this period (GLD accounts for 59% of Commodity market cap)
SPY’s $6.0 bln in net inflows was its largest week of net inflows since the week of 6/11/12
The iShares MSCI Japan Index Fund (EWJ) and the WisdomTree Japan Hedged Equity Fund (DXJ) generated a combined $998
mln in net inflows last week; over the last 13 weeks, the two funds have posted a combined $8.6 bln in net inflows
Notably, three defensive sector ETFs (XLV, XLP, XLU) and two US low/minimum volatility ETFs (SPLV, USMV) posted a
combined $2.5 bln in net outflows last week
XLE’s 46.6 mln shares short are at their highest level since 5/31/12
GLD’s shares short increased for the second consecutive period and are at their highest level since 8/31/11
Aggregate ETF USD short interest increased by $1.2 bln over the period ended 4/30/13
The SPDR Retail ETF (XRT) had the most shares short as a % of shares outstanding at 355% for the period ended 4/30/13; despite
consistently being one of the most heavily shorted ETFs since we began tracking the data, XRT has outpaced the S&P 500 Index
from a total return standpoint YTD and over the past 1-, 3-, and 5-year periods
Based on multiple borrowings and the ability to continuously create new shares, shares short as a % of shares outstanding can
exceed 100% (only seven ETFs exhibited shares short as a % of shares outstanding greater than 100%)
Source: Bloomberg, Morgan Stanley Wealth Management ETF Research. Data estimated as of 5/10/13 based on daily change in share counts and daily NAVs.
Newly launched International – Emerging Equity ETFs accounted for 25% of the market cap of ETFs launched over the past
year, the most of any category; iShares Core MSCI Emerging Markets ETF (IEMG) is the largest recently launched ETF with a
market cap of $1.3 bln
Issuance has been light in 2013 relative to the past three years; 43 new ETF listings and 27 closures/delistings YTD
Eight different ETF sponsors and two asset classes represented in top 10 most successful launches
Seven out of the 10 most successful launches over the past year have an income orientation
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund (TLTE) cracked the top 10 most successful launches over
the past year with a $124 mln market cap; TLTE owns emerging market companies tilted toward small cap and value.
Source: Morgan Stanley
