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DB-Equity Research-US ETF Market Weekly Review : Equity ETPs received $5.0bn in inflows
July 25, 2012--Net Cash Flows Review
Markets moved higher during last week, The US (S&P 500) edged higher by 0.43%. While, outside the US, the MSCI EAFE (in USD) and the MSCI EM (USD) rose by 0.43% and 1.23%, respectively. Moving on to other asset classes, the 10Y US Treasury Yield declined by 3bps last week; while the DB Liquid Commodity Index was up by 3.42%.
Similarly, the Agriculture sector (DB Diversified Agriculture Index) and the WTI Crude Oil advanced by 2.79% and 4.98%, while Gold and Silver prices retreated by 0.33%, and 0.05%, respectively. Last but not least, Volatility (VIX) dropped by 2.8% during the same period.
The total US ETP flows from all products registered $5.5bn of inflows during last week vs $0.9bn of inflows the previous week, setting the YTD weekly flows average at +$2.9bn (+$85.4bn YTD in total cash flows).
Equity, Fixed Income, and Commodity ETPs experienced flows of +$5.0bn, +$1.2bn, and -$0.8bn last week vs. +$0.3bn, +$1.0bn, and -$0.5bn previous week, respectively.
Within Equity ETPs, large cap products experienced the largest inflows (+$3.5bn); while small cap products had the largest outflows (-$0.5bn). Within Fixed Income ETPs, Corporate products had the largest inflows (+$1.1bn); while Sovereign ETPs experienced the only outflows (-$0.4bn), respectively. Within Commodity ETPs, precious metals products experienced the largest outflows (-$0.9bn), while the other sectors experienced less relevant flows.
Top 3 ETPs & ETNs by inflows: SPY (+$1.8bn), QQQ (+$1.2bn), XLI (+$0.5bn)
Top 3 ETPs & ETNs by outflows: GLD (-$0.8bn), IWM (-$0.5bn), SHY (-$0.5bn)
New Launch Calendar: more income strategies, AUD and enhanced beta
There were 5 new ETFs and 1 new ETN listed during last week. The new products offer exposure to Equity, Fixed Income and Currency asset classes. The new Equity products offer access to income through MLP investing and enhanced returns through a technical analysis-based strategy investing in small cap companies, similarly, the new Fixed Income products also offer access to income investing, but through preferred shares. Last but not least, the Currency products offer leverage long and short exposure to the Australian dollar.
Turnover Review: floor activity dropped by 6.1%
Total weekly turnover dropped by 6% to $238bn vs. $254bn in the previous week. Last week’s turnover level was 36% below last year’s weekly average. Equity ETPs experienced a decrease of $17.5bn or -7.7% to $210bn. In the meantime, Fixed Income ETP turnover rose by 15.5% (+$1.9bn), along with Commodity ETPs which rose by 1.8% (+$0.2bn).
Assets Under Management (AUM) Review: assets rose by 0.8%
ETP assets rose by 0.8% driven by strong inflows during last week and ended the week at $1.18 trillion. As of last Friday, US ETPs have accumulated an asset growth of 12.6% YTD. Assets for equity, fixed income and commodity ETPs moved +$8.1bn, +$2.3bn, and -$1.4bn during last week, respectively.
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Source: Deutsche Bank-Equity Research-North America
Market Vectors to cross-list 23 ETFs in Chile
Making these funds available to local investors
July 25, 2012--Market Vectors ETFs, the fifth largest provider of exchange-traded products (ETPs) in the U.S. and the eighth largest provider of ETPs globally, announced today that it will cross-list 23 of its exchange traded funds (ETFs) on the Santiago Stock Exchange, making these funds available to local investors in Chile.
In total, Market Vectors currently offers 50 ETFs which are listed on the NYSE Arca stock exchange.
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Source: Funds Americas
Citi Appointed by Huntington Asset Advisors to Provide Fund Administration and Custody Services for its Exchange Traded Funds
July 25, 2012--Citi has been appointed by Huntington Asset Advisors (Huntington) to provide fund administration, custody and index receipt services for Huntington Strategy Shares ETFs. The first Huntington ETF, Huntington Ecological ETF, launched on June 20, 2012 and will be followed by the Rotating Strategy ETF, which is scheduled to launch July 25th.
"We have a long-standing relationship with Citi and we knew we could rely on their expertise to provide valuable insight on how to develop active ETFs," said Randy Bateman, president and chief investment officer of Huntington Funds. "Citi met all our project milestones and allowed us to focus our energy on launching a new product and building this business."
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Source: Citi
S&P Dow Jones Indices Announces Changes To The S&P/TSX Canadian Indices - A Deletion From The S&P/TSX Venture Composite Index
July 25, 2012--S&P Canadian Index Services will make the following changes in the S&P/TSX Canadian Indices:
The shareholders of PetroMagdalena Energy Corp. (TSXVN:PMD) have agreed to the Plan of Arrangement dated June 5, 2012, whereby the company will be acquired by Pacific Rubiales Energy Corp. (TSX:PRE) for cash consideration of $CDN1.60 per share.
The company will be removed from the S&P/TSX Venture Composite Index after the close of trading on Wednesday, July 25, 2012.
Source: Standard & Poor's
S&P Dow Jones Indices Announces Changes To The S&P/TSX Canadian Indices -A Deletion From The S&P/TSX SmallCap And Equity SmallCap Indices
July 25, 2012--July 25, 2012--S&P Canadian Index Services will make the following changes in the S&P/TSX Canadian Indices:
The shareholders of Miranda Technologies Inc. (TSX:MT) have accepted the tender offer from Belden Inc. (NYSE:BDC) for cash consideration of $CDN17.00 per share.
Miranda Technologies will be removed from the S&P/TSX SmallCap and Equity SmallCap Indices after the close of trading on Friday, July 27, 2012.
Source: Standard & Poor's
Motivate market makers? Vanguard, iShares clash
June 24, 2012--Exchange-traded-fund heavyweights BlackRock Inc. and The Vanguard Group Inc. are at odds over proposals from the two biggest stock exchanges that would allow ETF sponsors to pay market makers directly for the first time.
BlackRock supports and Vanguard opposes the moves that, in effect, would permit sponsors of less actively traded exchange-traded funds to subsidize the markets for their products.
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Source: Investment News
CFTC's Division of Market Oversight Issues Temporary No-Action Relief from the Aggregation Requirements of the Commission's Rule Regarding Position Limits for Futures and Swaps
No-Action Relief Provides Two Alternative Methods for Compliance
Washington, DC
July 24, 2012--The Commodity Futures Trading Commission's (CFTC) Division of Market Oversight (DMO) today announced the issuance of temporary no-action relief in order to facilitate the Commission's commitment to coordinate the May 30, 2012, Notice of Proposed Rulemaking regarding aggregation (Aggregation Notice) with the implementation of position limits
under Part 151 (Position Limits Rule). The no-action relief is expected to provide an orderly transition to the compliance dates for the Position Limits Rule.
The no-action relief provides two alternative methods for compliance: (1) as if the Position Limits Rule were amended to include the provisions proposed in the Aggregation Notice; and (2) in conformity with the disaggregation criteria specified in the no-action relief.
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Source: CFTC.gov
CFTC Approves Regulations to Phase in Compliance with Clearing Requirements of the Dodd-Frank Act
July 24, 2012--The Commodity Futures Trading Commission today approved final regulations that establish a schedule to phase in compliance with new clearing requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).
The final rule will phase in the clearing requirement based on the type of market participant entering into swaps subject to the clearing requirement. The compliance schedule does not prohibit any type of market participant from voluntarily complying with the clearing requirement sooner than the compliance deadline. Moreover, the compliance schedule will be used at the Commission’s discretion when it believes that phasing is appropriate and needed by market participants.
view the Federal Register: Swap Transaction Compliance and Implementation Schedule: Clearing Requirement under Section 2(h) of the CEA
Source: CFTC.gov
Vanguard Earns Highest Ratings as an ETF Provider
July 24, 2012--According to a new report released by Cogent Research, Vanguard now tops the field of leading ETF providers in favorable impressions among financial advisors.
This year, 60% of the advisors included in Cogent's study view Vanguard very favorably, more positively than any other ETF provider. While still the dominant market share leader, iShares now ranks fourth in favorability among current brand users, behind Vanguard, WisdomTree, StateStreet/SPDR and First Trust. These and other findings are included in the Cogent Research Advisor Brandscape® 2012 report, an annual survey of over 1,700 financial advisors across all channels with at least $5 million in assets under management.
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Source: Cogent Research
CFTC Proposes Clearing Determination for Certain Credit Default Swaps and Interest Rate Swaps
Commission Proposes the First Swaps to be Cleared
July 24, 2012--The Commodity Futures Trading Commission today proposed new rules to require certain credit default swaps (CDS) and interest rate swaps to be cleared by registered derivatives clearing organizations (DCOs).
The proposed rule is the first clearing determination by the Commission under the Dodd-Frank Wall Street Reform and Consumer Protection Act. Under the proposed rules, market participants would be required to submit a swap that is identified in the rule for clearing by a DCO as soon as technologically practicable and no later than the end of the day of execution. The proposed rule will be open for public comment after the rule has been published in the Federal Register, and the comment period will be open for 30 days.
The Dodd-Frank Act amends the Commodity Exchange Act (CEA) to prevent market participants from engaging in a swap that is required to be cleared unless that person submits the swap for clearing to a DCO. The Dodd-Frank Act also requires the Commission to determine whether a swap is required to be cleared by either a Commission-initiated review or a submission from a DCO for the review of a swap, or group, category, type, or class of swap. The proposed rule does not apply to those who are eligible to elect an exception from clearing, such as non-financial entities hedging commercial risk.
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Source: CFTC.gov
