Global ETF News Older than One Year
Ahead of 2013 Russell Indexes reconstitution, a look back shows dynamic stocks helped drive a return of 26% for the Russell Developed Europe Index since 2012 reconstitution, while defensive stocks have led the Index year-to-date as of May 7
May 9, 2013--The European equity market as reflected by the Russell Developed Europe Index returned 26% since the completion of the Russell Indexes 2012 annual reconstitution, the annual rebalancing of the Russell Global Indexes, on June 25, 2012 to May 7, 2013, with dynamic stocks as reflected by the Russell Developed Europe Dynamic Index significantly outperforming defensive stocks as reflected by the Russell Developed Europe Defensive Index for the same time period.
Since the start of 2013, defensive stocks have led within the Index, with the Russell Developed Europe Defensive Index outperforming the Russell Developed Europe Dynamic Index year-to-date as of May 7.
Source: Russell
Thomson Reuters Global Equities Monthly Market Share Data Reports-April 2013
May 9, 2013--Trading is fragmenting between exchanges and competing venues. But by how much and which venues? Find out in the summarised monthly reports.
Source: Thomson Reuters
According to ETFGI record net inflows of 83 billion US dollars through the end of April 2013 helped to push assets invested globally in ETFs and ETPs to a new all-time high of 2.13 trillion US dollars
May 9, 2013--Record net inflows of US$83 billion through the end of April helped to push assets invested globally in Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) to a new all-time high of US$2.13 trillion, according to figures from ETFGI's Global ETF and ETP industry insights report for April 2013.
There are now 4,827 ETFs and ETPs, with 9,897 listings, assets of $2.13 trillion, from 209 providers listed on 56 exchanges. ETF and ETP assets have increased by 9.1% from $1.95 trillion to $2.13 trillion.
ETFs and ETPs recorded $9.9 billion in net inflows in April 2013. Fixed income ETFs and ETPs gathered the largest net inflows with $8.0 billion, followed by equity ETFs and ETPs with $7.5 billion, and active ETFs and ETPs with $1.3 billion, while commodity ETFs and ETPs experienced net outflows with $9.4 billion.
Fixed income ETFs and ETPs net inflows of $8.0 billion in April were composed of $2.8 billion of net inflows in government bond, followed by high yield with $2.0 billion, and corporate bond with $980 million, while inflation ETFs/ETPs experienced the largest net outflows with $251 million.
Equity ETFs and ETPs saw net inflows of $7.5 billion with US/North American equity gathering $9.2 billion, the largest net inflows, followed by developed Asia Pacific equity with $4.5 billion, and global equity with $1.1 billion, while emerging market equity experienced the largest net outflows with $5.0 billion.
Source: ETFGI
Morgan Stanley Overhauls Equity Systems to Cut Microseconds
May 8, 2013--Morgan Stanley (MS) has overhauled its trading infrastructure for U.S. equities to keep pace with a marketplace in which millionths of a second count.
The bank modernized its technology for stock trading to save fractions of a millisecond and is now moving clients onto the new platform, Bill Neuberger, global co-head of Morgan Stanley Electronic Trading at the New York-based company, said by phone. A millisecond is a thousandth of a second and a microsecond is a millionth. When carrying out buy or sell orders for customers, the changes will enable the bank to get 99 percent of the shares available on exchanges at a specific price, up from the high 80s two years ago, he said
Source: Bloomberg
Exchange Derivatives Trading Rose in First Quarter
May 8, 2013--The number of derivatives traded on exchanges rose in the first quarter as continuing political and economic risks drove traders into the market, according to data provided by the members of the World Federation of Exchanges.
Trading of exchange-traded derivatives globally increased 1.4 percent to 4.95 billion in the first quarter of 2013 from 4.88 billion in the comparable period last year, Romain Devai, WFE’s research and projects manager, said in an interview at IOMA, the World Federation of Exchanges’ derivatives conference, in Busan, South Korea.
Source: Bloomberg
Mirae Asset targets global ETF buildout
May 7, 2013--The firm has set its sights on the US, Latin America and South Asia as it strives to offer a broader suite to institutions. But market leader Samsung sees greater growth in the retail market.
Mirae Asset Global Investments is setting out to expand its exchange-traded fund (ETF) business globally into the US, Latin America and South Asia.
Source: Asian Investor
Global shares near 5-year high as central bank rally rolls on
May 7, 2013--World shares hit their strongest in almost five years and Germany's Dax reached an all-time high on Tuesday, as signals top central banks will remain supportive of growth continued to drive markets.
MSCI's global index, which tracks stocks in 45 countries, edged past its June 2008 highs in Asian trading after Japan's Nikkei stock market, which had been closed on Monday, jumped in a delayed reaction to Friday's U.S. jobs data.
Source: Reuters
BlackRock ETP Research-Record Growth Unfazed by Gold
May 7, 2013--Global ETPs attracted $10.3bn in April, keeping YTD flows ahead of last year's record pace
YTD global ETPs have seen inflows of $79.9bn, ahead of the $66.3bn of inflows accounted for during the same period in 2012.
In April, $9.5bn of flows into fixed income and $9.6bn of flows into equities were offset by ($8.7bn) of outflows from gold ETPs. Flows of ETPs moderated as investors expressed caution amidst less positive economic growth forecasts.
Within fixed income ETPs, flows into US Treasury ETPs picked up with $2.2bn, while short maturity ETPs continued to attract the majority of fixed income flows with $5.6bn for the month. Flows into shorter duration products show investors are continuing to position themselves for a potential rise in interest rates.
Equity ETP flows were led by developed equities with $13.1bn of flows, dividend income with $3.4bn of flows and minimum volatility funds with $2.5bn of flows throughout the month. These flows continue the trend of developed market exposure and non-market cap weighted products leading the flows for equities YTD.
Outflows from gold ETPs now total ($17.9bn) YTD as investors continue to witness increased volatility in the price of gold.
Source: BlackRock ETP Research
ETF Securities-Precious Metals Weekly: ECB Rate Cut Buoys Precious Metals Prices but Improving US Jobs Cap Gains
May 6. 2013--The ECB cut interest rates for the first time since July 2012 and left the door open for more action including imposing negative rates on commercial banks.
The cut from 0.75% to 0.50% sent precious metals higher as some investors looked to hedge against on-going economic uncertainty. The US dollar rose against the Euro as more investors expect the Fed has less easing potential than the ECB. Better-than-expected US payrolls numbers (including large upward revisions to past numbers) released at the end of last week consolidated that view, but capped some of the gains in precious metals seen earlier in the week. The gold price rise was somewhat more muted compared to when the ECB cut rates in July 2012, as the bearish tone for gold lingers. Despite obvious risks to the global recovery, investors are shunning gold, believing that the extremely accommodative central bank policy can circumvent another crisis and at the same time avoid generating inflationary pressures. Recent indicators for the global cyclical picture have been mixed with the US ISM coming in a touch higher than expected, but the Chinese PMI falling from last month and the Euro area PMI remaining below 50 (indicating a manufacturing contraction). Silver, the most industrial of the precious metals fell on the back of the Chinese PMI numbers.
Source: ETF Securities
IMF Working paper-Monetary Policy in Emerging Markets: Taming the Cycle
May 3, 2013--Summary: In contrast to advanced markets (AMs), procyclical monetary policy has been a problem for emerging markets (EMs), with macroeconomic policies amplifying economic upswings and deepening downturns.
The stark difference in policy has not been subject to extensive study and this paper attempts to address the gap. Key findings, using a large sample of EMs over the past 50 years, are: (i) EMs have adopted increasingly countercyclical monetary policy over time, although large differences remain among EMs and policies became more procyclical during the recent crisis. (ii) Inflation targeting and better institutions have been key factors behind the move to countercyclicality. (iii) Only deep financial markets allow EMs with flexible exchange rate regimes turn countercyclical. (iv) More countercyclical policy is associated with far less volatile output. The economically meaningful impact of IT on monetary policy countercyclicality and output variability is another reason in its favor, over and above better inflation outcomes.
view the IMF Working paper-Monetary Policy in Emerging Markets: Taming the Cycle
Source: IMF
