|DB - Equity Research-Weekly & Monthly European ETF Market Monitors: European ETF industry gets a fresh start in January-continued|
|February 10, 2012--ETF month in perspective|
2012: A fresh start for the European ETF industry
January brought a very strong start to the year for the global (US, Europe and Asia) ETF industry. ETF assets grew by 8.1% over January 2012, a growth rate that surpassed the overall 2011 year growth rate of 3.1%. Global ETF assets reached $1.4 trillion as of the end of January 2011, up from $1.3 trillion at the end of 2011.
|Both the US as well as the European ETF industries grew by 8.2% and 6.5%, reaching asset levels of $1.0 trillion and €221.3 billion respectively. Most of the growth came from rebounding equity markets, however, flows accounted for 2.9% of the growth in the US market and for 1.1% of the growth in the European market (US$ terms). Cash flows for the US market totaled $27.1 billion and €2.4 billion for the European market, for the month of January.
The performance of the European ETF market in the first month of 2012 was sharply different from how it ended the previous year. European ETFs registered outflows of €2.2 billion over December 2011, a decline that was largely driven by equity outflows (€1.8 billion). This situation was reversed in January 2012, with equities contributing €1.5 of net inflows towards the new money that flowed into the European ETF industry.
The January 2012 European ETF industry fresh start was mainly driven by two factors. First, overall market conditions improved somewhat, with the Euro Stoxx 50 delivering gains of 4.3%. Better market conditions helped bring ETF investors out of their shell and allocate money back in the equity market. Second, the European Securities and Markets Authority, ESMA, issued its second consultation on ETFs. ESMA’s publication of its views provided comfort to investors as it gave an indication both about the regulatory body’s future intentions as well as its views with regards to perceived ETF risks.
Overall, the ESMA consultation was deemed to be balanced, avoiding any dramatic changes in the European ETF market, especially those that would put it at odds with how mutual funds operate under UCITS. The consultation provided further evidence that ESMA, through ETFs, which are perceived to be the golden standard in the fund industry, is looking to 'tidy-up' a number of wider fund management industry issues, such as tracking capacity and fund construction, primarily pertaining to total return swaps and securities lending practices .
ETF Industry: The month’s investment trends
The US Market: Flows across the board, from domestic to emerging markets
The US ETF industry registered strong cash flows in the first month of the year totaling $27 billion. Investors favor for risky assets continued in January with equities having the lion’s share in cash inflows ($19.3 billion).
US ETF equity flows were quite diversified, with both domestic as well as emerging markets benefiting. US domestic benchmarked equity ETFs brought inflows of $11.5 billion, while emerging market benchmarked equity ETFs saw inflows of $5.7 billion. Sectors also did well, attracting new money totaling $3.2 billion.
Fixed Income ETFs collected a healthy $7.7 billion in cash inflows; a healthy increase over the $6 billion inflows received in December. Commodity ETVs had a positive month, receiving cash inflows in excess of $1.5 billion which is in sharp contrast to last month’s pattern where commodities registered outflows of $2.7 billion.
For more information about analysis and trends in the US ETF market please refer to our US ETF Market Monthly Review.
The European Market: Emerging Markets main flow growth driver
Equity markets across Europe had a very positive run over the month registering advances across the board: DAX (? 9.5%), CAC (? 4.4%), Euro Stoxx 50 (? 4.3%) and the FTSE 100 Index (? 2.0%). Gold and silver spot prices (US$/oz), also appreciated by 9.8% and 17.6% respectively.
The European ETF industry improved on its poor run in December (outflows of €2.1 billion) and received cash inflows of €2.4 billion in January. Most of the flows went into ETFs tracking equity benchmarks (€1.5 billion) with healthy contributions by other asset classes; Fixed Income ETFs (€412 million), commodities (€331 million) and alternatives (€159 million).
Within equities, emerging markets (EM) benchmarks were back in vogue, collecting cash inflows of €904 million in January. The BRIC countries (Brazil, Russia, India & China) collectively pocketed cash inflows of €365 million while ETFs tracking broad benchmarks like the MSCI EM collected €385 million over the same period. Within ETFs tracking developed markets (DM) benchmarks, a clear divergence was visible: ETFs focused on North American region which includes US & Canada received cash inflows of €672 million while ETFs tracking European benchmarks registered outflows of €663 million. ETFs tracking broader DM benchmarks such as MSCI World received net cash inflows of €107 million over the month of January.
ETFs tracking European sectors registered cash inflows of €171 million in January as compared to outflows of €166 million in the month of December.
Despite the positive equity markets and healthy flows, a hint of bearishness continues to persist as evident from the flows into leveraged and inverse products. ETFs providing inverse and leveraged inverse exposure pocketed inflows of €272 million and €282 million in January respectively. On the other hand ETFs providing leveraged exposure registered cash outflows of €332 million.
Fixed Income ETFs registered cash inflows of €412 million over January as compared to outflows of €404 million in December 2011. ETFs tracking corporate debt issuances and sub-sovereigns collected inflows of €588 million and €117 million respectively. Money market & sovereign ETFs registered outflows of €249 million and €144 million respectively.
Commodity ETPs received cash inflows totaling €498 million in January which is marginally higher than the €198 million received in December 2011. Most of the inflows were into products tracking crude oil (€211 million) and diversified commodity indices (€131 million).
ETP investors approached gold products with caution in January, evident from the inflows totaling €56 million which is significantly lower than the €623 million received in December 2011.
ETF comparatives: Mutual Funds, cash equity turnover
European ETF turnover is 8.0% of the region’s cash equities turnover as of the end of January 2012. The equivalent number for the US market stands at 24.5%.
European ETFs comprised 2.8% of the continent’s mutual fund industry, yet ETF cash flows, €17.7 billion from Jan-Nov 2011, was over 1.4x higher than the corresponding unlisted fund flows (- €44 billion). European unlisted mutual funds registered outflows of close to €138 billion in the months of Aug-Nov 2011. Mutual fund industry data as per the European Fund Management Association (EFAMA).
US ETFs comprised 8.1% of the its mutual fund industry, yet ETF cash flows, $113 billion for 2011, was over 4.7x higher than the corresponding unlisted fund flows ($24 billion). Mutual fund industry data as per the Investment Company Institute (ICI).
|Source: Christos Costandinides, European Head of ETF Research & Strategy, Deutsche Bank|
|Europe ETP News|
|Moody's downgrades 15 tranches in 11 Russian RMBS transactions|
|Actions follow the lowering of Russia's local-currency bond ceiling; 3 tranches in one RMBS transaction placed on review for downgrade
January 23, 2015--Moody's Investors Service has today downgraded 15 tranches in 11 transactions and placed on review for downgrade three tranches in one transaction, Russian Mortgage Backed Securities 2006-1 S.A.
|Eurozone economy picks up in January: survey|
|January 23, 2015--Eurozone business activity picked up to a five-month high in January, a key survey showed Friday, just the day after the European Central Bank announced a 1.0-trillion-euro economic stimulus package.|
|iShares launches Eurozone and US bond ETFs on Xetra|
|January 22, 2015--iShares, BlackRock's ETF product range, has launched two new Ucits compliant ETFs providing exposure to long-term euro-zone and US government bonds on Deutsche Börse's securities trading platform Xetra.|
|Mario Draghi announces €1.1 trillion quantitative easing programme|
|Stimulus package will include sovereign debt purchases to buoy the Eurozone|
January 22, 2015--European Central Bank (ECB) president Mario Draghi unveiled bigger-than-expected quantitative easing measures on Thursday but still faced a fierce fight from Germany over any policy that could mutualise debt in the eurozone.
|The rise of the 'robo adviser'|
|January 21, 2015--These online investment services, which usually construct portfolios using ETFs,|
|Statistics: Forecasts for the UK economy: January 2015|
|January 21, 2015--A comparison of independent forecasts for the UK economy in January 2015.|
|Borsa Italiana-ETFstat December 2014|
|January 20, 2015--Listing
ETFplus market welcomed a new issuer: WisdomTree launched on the market 6 ETFs
In 2014 162 new instruments were listed on ETFplus market
At the end of 2014 there were listed 927 instruments (673 ETFs and 254 ETCs/ETNs)
|MarketAxess and BlackRock Expand Strategic Trading Alliance into Europe|
|January 20, 2015--MarketAxess Holdings Inc. and BlackRock, Inc. are expanding their Open TradingTM alliance into the European credit markets.|
|Four Smart Beta iShares ETFs launched on Xetra|
|ETFs offer access to MSCI Europe strategy index family
January 20, 2015--Four new iShares equity index ETFs from BlackRock's product offering have been tradable in Deutsche Börse's XTF segment on Xetra since Tuesday.
|Two new Amundi bond index ETFs launched in XTF segment on Xetra|
|Two new exchange-listed bond index funds issued by Amundi have been tradable in Deutsche Börse's XTF segment since Tuesday.
Name: Amundi Govt Bond Lowest Rated EuroMTS Investment Grade 1-3 UCITS ETF
Asset class: bond ETF
|Source R Equal-Risk European Equity UCITS ETF launched on Xetra|
|ETF uses risk-pbased index strategy for the largest European stock companies
January 20, 2015--A new equity index fund from the ETF offering issued by Source has been tradable in the XTF segment on Xetra since Monday.
ETF name: Source R Equal-Risk European Equity UCITS ETF
Asset class: equity index ETF
|WisdomTree Launches ETF Platform in Italy with Six UCITS Smart Beta ETFs on the Borsa Italiana|
|January 20, 2015--Leading Provider of Smart Beta ETFs Lists Six Dividend-Weighted Funds
WisdomTree Europe Equity Income UCITS ETF (EEI)
WisdomTree Europe SmallCap Dividend UCITS ETF (DFE)
WisdomTree US Equity Income UCITS ETF (DHS)
|ECB compromises with Germany over QE programme: FT|
|January 19, 2015--The European Central Bank (ECB) will next week announce plans to directly buy government bonds, creating new money to fight off possible deflation despite German objections, according to Saturday's FT.|
|Nomura launches US Dollar and Euro-hedged Nikkei 225 ETFs|
|January 19, 2015--Nomura, Asia's global investment bank, today launched the "Nomura Nikkei 225 Euro-Hedged UCITS Exchange Traded Fund" and the "Nomura Nikkei 225 US Dollar-Hedged UCITS Exchange Traded Fund".|
|Bond-Price Disclosure Seen Raising Europe Borrowing Costs|
|January 19, 2015--Companies in the European Union may face an "alarming" surge in funding costs if the bloc's markets regulator pushes too many trades into the light, a bloc-wide business lobby said.|
|ECB compromises with Germany over QE programme: FT|
|January 17, 2015--The European Central Bank (ECB) will next week announce plans to directly buy government bonds, creating new money to fight off possible deflation despite German objections, according to Saturday's FT.|
|Banks and fund managers plan new European equity venue|
|December 17, 2014--A consortium of investment banks and fund managers are working on a new not-for-profit equity trading venue in Europe that would also sponsor academic research to improve trading in the region.|
|EU moves toward higher transparency of research payments|
|January 15, 2015--EU regulators are moving forward with proposals to separate payments for research from dealing commissions via the revised Markets in Financial Instruments Directive.|
|ESMA Working Paper-Real-world and risk-neutral probabilities in the regulation on the transparency of structured products|
|January 15, 2014--Summary|
The price of derivatives (and hence of structured products) can be calculated as the discounted value of expected future payoffs, assuming standard hypotheses on frictionless and complete markets and on the type of stochastic processes for the price of the underlying.
|Unscheduled free float adjustment in SDAX|
|January 15, 2105--Deutsche Börse AG has announced an unscheduled adjustment to the free float of VTG AG in SDAX.|
|Unscheduled component changes SDAX: Hella KGaA Hueck & Co will replace C.A.T. Oil|
|January 14, 2015--Deutsche Börse has announced that C.A.T. Oil AG will be replaced by Hella KGaA Hueck & Co. in SDAX.|
|iShares MSCI Target US Real Estate UCITS ETF launched on Xetra|
|ETF provides liquid access to the performance of US real estate
January 14, 2015--A new iShares mixed fund ETF from BlackRock's product offering has been tradable in Deutsche Börse's XTF segment on Xetra since Wednesday.
ETF name: iShares MSCI Target US Real Estate UCITS ETF
Asset class: mixed fund ETF
Total expense ratio: 0.40 percent p.a.
|Source offers some of the lowest management fees in Europe ETFs/ETPs|
|January 14, 2015-Source, an investment firm and a leading provider of Exchange Traded Products (ETPs), offers some of the most competitively priced core ETP exposure including S&P500 and Eurostoxx 50 at 5bps p.a. MSCI Europe at 20bp p.a. and Physical Gold at 29bp p.a.|
|Smaller iShares role in BlackRock's Europe sales|
|January 14, 2015--BlackRock's exchange traded funds are accounting for a smaller proportion of the company's European-domiciled product net sales than they previously did, according to Lipper.|
|Lyxor teams up with boutique firm for Alt Ucits fund launch|
|January 13, 2015--French group Lyxor Asset Management has strengthened its Alternative Ucits fund range with the launch of a global emerging market long/short equity fund.|
|Euronext launches options on ETFs in Amsterdam|
|New option products offer investors an alternative low cost way of investing in broad indices|
January 13, 2015--Euronext, the leading exchange in the Eurozone, today announced the launch of options on six iShares ETFs on its highly successful and innovative Amsterdam derivatives market.
|The European Fund for Strategic Investment: Questions and Answers|
|January 13, 2015--1.What did the Commission propose today, what are the elements of the proposal?
The European Commission adopted the legislative proposal to put in place the European Fund for Strategic Investments, which is at the very heart of President Juncker's €315 billion Investment Offensive.
|ETFGI Press Release December 2014: Europe|
|January 12, 2015--The European ETF/ETP industry gathered a record level of 62 billion US dollars in net new assets in 2014 according to research by ETFGI|
|New ETF offers first time access to robotics|
|January 12, 2015--A new equity index fund from the ETF Securities product family has been tradable in Deutsche Börse's XTF segment since Monday.|
|Three new db x-trackers bond index ETFs launched on Xetra|
|ETFs provide access to high yield corporate bonds
January 12, 2015--Three new db x-trackers from the ETF section of Deutsche Asset & Wealth Management have been tradable in the XTF segment on Xetra since Monday.
|HM Treasury-national statistics: GDP deflators at market prices, and money GDP: December 2014|
|January 12, 2015--A series for the GDP deflator in index form is produced by the Treasury from data provided by the Office for National Statistics (ONS) and the Office for Budget Responsibility (OBR).|
|London Stock Exchange ETF & ETP 2015 Annual Update|
|January 12, 2015--ETF & ETP Annual Update-January 2015|
ETF record year
Total on-exchange value traded for ETFs in 2014 was £169.7 billion (2 million trades), up by 24% compared to last year
ETPs in Europe gathered $60.8 billion AUM in 2014, triple the amount last year
|ECB looking at risk-sharing mix for QE plan|
|January 9, 2015--The European Central Bank is considering a hybrid approach to government bond purchases which would combine the ECB buying debt with risk sharing across the euro zone and, in a nod to German qualms, separate purchases by national central banks.|
|ECB examines different bond purchases models: report|
|January 9, 2015--European Central Bank staff have presented its governing council with various models for a new asset purchase programme to ward off deflation in the euro area, Bloomberg reported on Friday.|
|MiFID lowers swaps liquidity bar|
|January 9, 2015--For the European derivatives market, 2015 is set to be the year in which the final pieces of the regulatory jigsaw are finally put in place, comprising rules on electronic trading, transparency and margin, as well as the implementation of central clearing for standardised swaps.|
|ESMA publishes updates to Q&As on the AIFMD and the guidelines on ETFs and other UCITS issues|
|January 9, 2015--The 2 Q&As published today contain updated questions and answers on the application of the AIFMD (page 16) and of the guidelines on ETFs and other UCITS issues (page 7).|
|BOOST launches Europe's first 3x Leverage Fixed Income ETPs on Borsa Italiana|
|Europe's first range of 3x Leverage Fixed Income ETPs listed|
Italy's first ever BTP 10Y, 10Y US Treasuries and Bund 10Y 3x leverage ETPs BOOST's Short and Leverage ETPs approx. 28% of ETP & ETC market share in Italy (1)<
|Barclays 'bad bank' chief Bommensath to quit at end-January|
|January 8, 2015--British bank Barclays Plc's (BARC.L) said its "bad bank" business head Eric Bommensath will leave at the end of this month after 17 years at the bank.|
|Short and Leverage ETP demand continues, while past misconceptions shown to be overblown|
|January 7, 2015--WisdomTree Europe recognises recent U.S. Federal Reserve Board Paper as opportunity for evaluation of Short and Leverage Exchange Traded Products ("S&L ETPs")<|
|'Grexit' spectre returns, but eurozone safer: analysts|
|January 6, 2015--Fears of a Greek euro exit have returned with a bang after Athens called early elections on Monday, but steps taken after the financial crisis should stop the rest of the currency zone imploding, analysts say.|
|European Commission amends draft RTS on clearing obligation for IRS|
|January 6, 2015--On 18 December 2014, the Commission indicated in a letter addressed to ESMA its intention to endorse with amendments the first technical standards on the clearing obligation for interest rate swaps.|
|EurexOTC Clear passes milestone|
|Total notional transaction volumes pass 100-billion-euro level
January 6, 2015--Eurex Clearing, Europe's leading clearing house and part of Deutsche Börse Group, announced today that the total cumulative notional volumes of cleared OTC transactions have now passed the 100-billion-euro mark.
|UK Official holdings of international reserves: December 2014|
|January 6, 2015--This monthly release shows details of movements in the UK's official holdings of international reserves, or assets. These consist of gold, foreign currency assets and International Monetary Fund assets|
|Borsa ?stanbul investors gained a yield of 26.43 % in 2014.|
|January 5, 2015--Registering a historic high session closing, Borsa Îstanbul ranked among the top 5 performers of the world.|
|Boerse Stuttgart generates 2014 turnover in region of EUR 88 billion|
|January 5, 20155--Record turnover in exchange-traded products|
Boerse Stuttgart leads European market in securitised derivatives and German bond market
|Nasdaq Nordic And Baltic Markets Annual Trading Statistics 2014|
|January 2, 2015--Nasdaq (Nasdaq:NDAQ) today publishes annual trade statistics for the Nordic1 and Baltic2 markets.|
|The Spanish Stock Exchange Traded €80.6 Bn. In December, Up 34% Year On Year|
|January 2, 2015--MONTHLY AND YEARLY TRADING STATEMENTS FOR BME MARKETS
The trading volume for the year 2014 grew 26%
Annual record high in the number of equity trades, at 70.9 million
|1.28 trillion euros turnover on Deutsche Boerse's cash markets in 2014|
|108.9 billion euros turnover in December
January 2, 2015--In 2014, turnover at the cash markets of Deutsche Börse stood at €1.28 trillion (2013: €1.16 trillion).