Americas ETP News
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Passive approach begins to gain currency
March 30, 2012--The use of exchange-traded funds (ETFs) has grown significantly as investors continue to seek cheaper ways of gaining exposure to certain asset classes over more expensive actively managed strategies.
While ETFs have proved popular vehicles to gain passive exposure to equities, bonds and commodities, currency is something of a late comer to the party and it is only recently that exchange traded products (ETPs) offering exposure to the asset class have started to gain ground.
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Source: FT.com
Auspice eBeta Enhanced Indices Licensed for New Funds
MArch 29, 2012--Auspice Capital Advisors Ltd. (Auspice), a leading alternative investment manager has recently entered into partnerships with two leading North American fund providers, which have both licensed the Auspice eBetaTM Enhanced Indices to use in new mandates.
Auspice has entered into a partnership with Direxion Funds of New York to license the Auspice Broad Commodity ER Index and Auspice Managed Futures ER Index for distribution to U.S. investors in a mutual fund format. The two U.S. based mutual funds will seek to replicate the performance of the Auspice Broad Commodity ER Index and Auspice Managed Futures ER Index. The mutual funds both launched February 1st with the following tickers: DXCTX:US and DXMAX:US.
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Source: Auspice Capital Advisors, Ltd.
Chaos Over a Plunging Note
March 29, 2012--Regulators are examining volatile trading in a complex exchange-traded note that caused it to lose 60% of its value in the past week.
The Securities and Exchange Commission is looking into the VelocityShares 2x Long VIX Short Term Exchange note, managed by Credit Suisse Group AG, which had about $700 million in assets before the decline, according to people familiar with the matter. The SEC review is preliminary, the people said.
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Source: Wall Street Journal
Bernanke: Economy to return to trend growth
March 29, 2012--Federal Reserve Chairman Ben Bernanke said on Thursday that he expects the U.S. economy to return to a long-term growth rate around three percent over time.
Speaking to students at George Washington University, he said U.S. growth was below its long-term trend now, still in a relatively weak recovery following the 2007-2009 financial crisis.
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Source: Reuters
"Day Tripper"-Opening Statement of Commissioner Bart Chilton to the CFTC Technology Advisory Committee,
March 29, 2012--Thanks to Commissioner O'Malia for his leadership of the Technology Advisory Committee (TAC). He and his staff have done a marvelous job and they are to be commended.
There are over 160 million financial transactions taking place around the world every day. Just think about these markets of enormous size and girth. Journeymen traders, cheetah high frequency traders and others are churning away, burning up the fiber—many trying to scoop up micro dollars in milliseconds as they arbitrage between one market and another, between one or more exchanges in one nation to multiple exchanges around the world. It is a complex matrix that boggles the mind. It is amazing that it works as well as it does, but then again, there are noticeable trips and falls all the time.
I hear from a lot of people in the financial sector how the cheetahs, the HFTs, are nothing more than a variation of the old day trader. The argument is that like day traders, the cheetahs are simply trading based upon very intricate information and making trading decisions in as fast a manner as possible. Similarly, the day traders and the cheetahs desire to be flat at the end of the day, with no outstanding exposure.
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Source: CFTC.gov
SEC examines plunge in volatility product
March 29, 2012--The Securities and Exchange Commission is conducting a preliminary review into the volatile trading in an exchange-traded note (ETN) that had lost about 60 percent of its value over the past week, the Wall Street Journal said, citing people familiar with the matter.
The VelocityShares Daily 2x VIX Short-Term exchange-traded note, managed by Credit Suisse, tracks the volatility in the stock market. On an average, the TVIX moves about up and down in percentage terms as the VIX does.
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Source: Reuters
BlackRock to Start Junk Bond ETF Amid Record Inflows
March 29, 2012--BlackRock Inc. (BLK), the world's biggest money manager, is planning a global junk-bond exchange-traded fund after its first high-yield debt ETF grew to include $14.3 billion of assets in four years.
The IShares Global ex-USD High-Yield Corporate Bond Fund will track an index composed of speculative-grade bonds denominated in euros, pounds and Canadian dollars, according to a prospectus filed today with the Securities and Exchange Commission. The fund aims to invest at least 40 percent of its assets in companies located or doing business outside the U.S., the document said.
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Source: Bloomberg
Guggenheim Investments Announces Final Liquidation Amount Per Share for the Liquidation of Guggenheim MSCI All Country World (ACWI) Equal Weight ETF
March 29, 2012--Guggenheim Investments announced today the final liquidation amount per share for the Guggenheim MSCI All Country World (ACWI) Equal Weight ETF (nysearca:EWAC).
The per-share liquidating amount will be $37.2855 per share with a payable date of 3/30/2012 for any shareholders.
Past performance is not indicative of future performance.
Source: Guggenheim Investments
NSE To Launch Corporate Debt ETF
March 29, 2012--The National Stock Exchange plans to introduce a 'Corporate Debt Exchange Traded Fund' or ETF in this calendar year, reports said.
ETFs are essentially index funds that are listed and traded on exchanges. In this sense, an ETF is a basket of stocks or assets such as gold or even money market instruments. Its trading value is based on the net asset value of the underlying assets that it represents.
The new product is in line with the Government's emphasis on expanding and deepening the corporate debt market. It will help investors put money in a basket of corporate bonds, thereby getting the benefit of a portfolio for investment, source said.
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Source: RTT News
ProShares Launches TTT: New Inverse Treasury ETF
Joins Popular TBT and TBF to Help Hedge Against Potential Declines in Long-term Treasurys
March 29, 2012--ProShares, the nation's fourth most successful exchange traded fund (ETF) company,1 announced today the launch of ProShares UltraPro Short 20+ Year Treasury. The ETF lists on NYSE Arca today.
TTT seeks to provide -3x the daily performance of the Barclays Capital 20+ Year U.S. Treasury Bond Index, before fees and expenses. TTT is the third ProShares ETF providing inverse exposure to long-term Treasurys. In addition to TTT, ProShares offers the popular -2x and -1x long-term Treasury ETFs, ProShares UltraShort 20+ Year Treasury and ProShares Short 20+ Year Treasury.
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Source: ProShares
