|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|
|ZyFin lists Indian equity ETF on the LSE, Deutsche|
|September 22, 2016--Asset manager ZyFin Holdings Pte Ltd has announced the listing of Europe's first physically replicated Indian equity ETF.|
|The City's Brexit strategy faces hurdles|
|September 22, 2016--The UK's Brexit strategy for the City of London is quietly taking shape.|
|State Street and Bloomberg tie up to add zip to bond ETFs|
|September 22, 2016--A product that helps link buyside and sellside to help navigate low-liquidity bond markets is being launched in Europe after signing up big fund managers in the US.|
|Unscheduled adjustment in SDAX|
|September 21, 2016--Adjustments to the free float of CHORUS Clean Energy AG/ Changes to be effective as of 26 September 2016
On Wednesday, Deutsche Börse announced an unscheduled adjustment to the free float of CHORUS Clean Energy AG in SDAX.
|Amundi ETF expands further into retail market by extending its physical ETF range to develop ETF-based solutions for distributors|
|September 21, 2016--Amundi ETF, Europe's fifth largest ETF provider1, expands further into the European retail market by extending its physical ETF range to develop ETF-based solutions.|
|Official Statistics: Forecasts for the UK economy: September 2016|
|September 21, 2016--Forecasts for the UK economy is a monthly comparison of independent forecasts.|
|ESMA consults on trading obligation for derivatives|
|September 20, 2016--The European Securities and Markets Authority (ESMA) has published today a discussion paper regarding the trading obligation under the Markets in Financial Instruments Regulation (MiFIR).|
|Five new BNP Paribas ETCs from energy commodities sector launched on Xetra|
|September 16, 2016--Five new exchange traded commodities (ETCs) issued by BNP Paribas Arbitrage Issuance B.V. have been tradable on Xetra and Börse Frankfurt since Friday.|
|Lyxor-How can investors enhance return from their portfolio|
|September 15, 2016--This new environment obviously calls for new forms of asset allocation in order to generate performance. In addition, significant recent developments in financial theory allow for better, more specific answers to investors' expectations.|
|THEAM aims to triple assets under management in ETFs by 2020|
|September 15, 2016--THEAM, BNP Paribas Investment Partners' specialist in capital-protected, indexed and model-driven management, has unveiled a new strategic plan for its indexed fund activities, confirming its intention to double assets under management in indexed funds and triple those of exchange-traded funds (ETFs) by 2020.|
|BNP Paribas Easy launches 16 new ETFs on Xetra|
|September 15, 2016--Sixteen new exchange-listed equity index funds issued by BNP Paribas Easy have been tradable via Xetra and Börse Frankfurt since Wednesday.|
|Packaged retail investment products: Parliament returns draft law to Commission|
|September 14, 2016--Draft legislation designed to protect retail investors was rejected by MEPs on Wednesday as so "flawed and misleading" that it could actually lose them money. Unusually, it will be returned to the EU Commission for revision.|
|Lyxor research highlights the growing role of Smart Beta in new investment strategies|
|September 14, 2016--Lyxor Asset Management today unveils the results of a new wide-ranging study that compares the performance of European domiciled active funds with that of their benchmarks.|
|Solactive launches european quality market neutral index-Licensed to Natixis|
|September 14, 2016--Solactive is announcing the launch of the Solactive European Quality Market Neutral Index licensed to Natixis. The index is to be used as an underlying for structured products issued by Natixis.|
|iShares launches first ETFs on innovative sector indices in iSTOXX FactSet Thematic index family on Xetra|
|September 13, 2016--ETFs track themes: Automation & Robotics, Breakthrough Healthcare, Digitalisation and Ageing Population|
Four new sector ETFs issued by BlackRock have been tradable on Xetra and Börse Frankfurt since Tuesday.
|Xetra-Gold exceeds 100 ton mark in gold holdings|
|September 13, 2016--The gold held in custody by Deutsche Börse Commodities GmbH for the purpose of physically backing the Xetra-Gold bearer note has risen to a new record high of 100.7 tons, an increase of approximately 70 per cent since the beginning of the year.|
|Borsa Italiana: ETFstat August 2016|
|August 13, 2016--New Listing
5 new instruments were listed on ETFplus market
At the end of August there were listed 1137 instruments (706 ETFs, 301 ETCs/ETNs and 130 open-end CIUs)
|Newly launched iSTOXX FactSet thematic indices to underlie four exchange-traded funds|
|September 12, 2016--STOXX Ltd., the operator of Deutsche Böerse Group's index business, and a global provider of innovative and tradable index concepts, today announced that the newly launched iSTOXX FactSet Thematic Indices that capture megatrends in investing have been licensed to iShares to underlie four exchange-traded funds (ETFs).|
|London Stock Exchange Request For Quote -ETFs & ETPs-Go Live December 2016|
|September 12, 2016--Complimentary RFQ Trading for 6 months
RFQ trading will be complimentary for the first 6 months from launch.
RFQ functionality set to be available from end of December 2016.
Customer testing of RFQ available from October 2016.
|UK to approve insurance-linked securities|
|September 11, 2016--The UK government has moved to boost London's position in the insurance world by pressing ahead with new rules designed to attract one of the fastest growing parts of the market.|
|Funds with performance fees come under fire|
|September 9, 2016--Eight out of ten UK funds that charge to beat a benchmark have failed to beat the market.|
|New ETF Listing on Euronext|
|September 9, 2016--Euronext is pleased to announce that PowerShares will list 1 new ETF on 12/09/2016 :|
ETF Trading name: PS US HYFA
ETF Symbol: HYFA
Venue: Euronext Paris
|Britain's first post-Brexit budget due in November|
|September 8, 2016--The British government will in November present its first budget since the country voted to leave the European Union, the Treasury announced on Thursday.|
|ECB-Monetary policy decisions|
|September 8, 2016--At today's meeting the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively.|
|MOVES-UBS Asset Management names Pedro Coelho head of UBS ETFs Spain|
|September 8, 2016--UBS Asset Management, the asset management division of UBS Group AG, named Pedro Coelho head of UBS ETFs Spain, responsible for business development.|
|German growth expected to halve in 2017 as Brexit bites|
|September 8, 2016--German economic growth will nearly halve in 2017 as Brexit and other risks hit exporters, the DIW institute said on Thursday, although it predicted a pick up to 1.9 percent this year due to strong domestic demand.|
|New db x-trackers bond index ETF on Asian corporate bonds ex Japan tradable on Xetra|
|September 8, 2016--Investment-grade bonds denominated in US dollar|
A new db x-trackers ETF from the Deutsche Asset Management ETF product family has been tradable in Deutsche Börse's XTF segment via Xetra and Börse Frankfurt since Thursday.
|QE extension risks reopening ECB rifts|
|September 7, 2016--Germany sceptical of moves to prolong asset purchase scheme.|
|Corporate Europe Embraces Bonds as Yields Plunge to Record Low|
|September 7, 2016-Another 2.1 billion euros of sales added to week's tally
Negative yields have spread to non-financial euro bonds
|WisdomTree promotes from US office for European distribution head|
|September 7, 2016--ETF sponsor WisdomTree has promoted Morgan Lee from its US office to become head of distribution for its European operations.|
|Unscheduled adjustment in DAX|
|September 7, 2016--Adjustments due to spin-off of Uniper SE from E.ON SE/DAX calculation on 12 September with 31 companies On Wednesday, Deutsche Börse announced an unscheduled change to the DAX index.|
|Lyxor-ETF Barometer-August 2016|
|September 7, 2016--European ETF Market flows slowed in August 2016. NET NEW ASSETS (NNA) during this month amounted to EUR4.7bn, still 21% above the one-year monthly average level.|
|Eurex's former innovation head joins board of blockchain startup|
|September 7, 2016--A former chief innovation officer at Deutsche Börse-owned derivatives exchange Eurex has joined the advisory board of a London-based startup that is developing blockchain solutions for the settlement and safekeeping of securities.|
|New Brent Crude Oil ETC from BNP Paribas launched on Xetra|
|September 6, 2016--ETC provides access to the Rogers International Commodity Enhanced Indices (RICI) commodity index family|
|Companies Get Paid to Borrow as Global Bond Binge Resumes|
|September 6, 2016--Sanofi, Henkel issue debt with yields less than zero|
U.S. bond sales push year-to-date issuance past $975 billion
|Solactive launches Global Ethical Low Volatility AR EUR Iindex-licensed to Commerzbank|
|September 6, 2016--Solactive announces the release of the Solactive Global Ethical Low Volatility AR EUR Index, which tracks the performance of companies that display strong environmental, social and governance (ESG) standards and low volatility characteristics.|
|HMT statistical release: UK official holdings of international reserves|
|September 5, 2016--Updated: UK official holdings of international reserves: August 2016
Monthly statistical information on UK official holdings of international reserves
|National Statistics: UK official holdings of international reserves: August 2016|
|September 5, 2016--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.|
|Monday Morning Memo: Securities lending remains a hot topic in the European ETF industry|
|September 5, 2016--After iShares-the exchange-traded fund (ETF) arm of the world's largest asset manager, BlackRock-announced last year that it has scrapped its self commitment on the percentage of securities held by the firm that can be lent to third parties, Vanguard announced recently that it also will increase its involvement in securities lending.|
|Euro-Area Growth Slows to Weakest in 19 Months Ahead of ECB|
|September 5, 2016--PMI survey shows weaker German expansion dragging on region
ECB's Governing Council meets on Sept. 7-8 in Frankfurt
|S+T AG and Leifheit AG to be included in selection indices of Deutsche Borse|
|September 5, 2016--S+T AG and Leifheit AG to be included in selection indices of Deutsche Börse|
Deutsche Börse reviews index composition/Changes to be effective as of 19 September 2016
|Invesco PowerShares launches 'fallen angels' ETF|
|September 5, 2016--Invesco PowerShares is today listing a "fallen angels" ETF on the London Stock Exchange focused on US high-yield bonds with further listings across Europe to launch next week.|
|BMO GAM appoints State Street's Cantrell to lead UK ETF sales|
|September 5, 2016-BMO Global Asset Management has hired Christine Cantrell from State Street as sales director for UK ETF sales.|
|ECB's QE bond buying hits euro1 trillion milestone|
|September 5, 2016--The European Central Bank's quantitative easing program passed a milestone last week, topping 1 trillion euros in purchases after 18 months of aggressive bond buying.|
|Turnover in excess of EUR 6.5 billion generated by Boerse Stuttgart in August|
|September 2, 2016--Trading volume up on previous month//Significant increase in turnover in investment products //Debt instruments (bonds) and equities also record growth|
|ETF Securities converts first Global Robotics & Automation ETF in Europe to physically-backed and reduces TER|
|September 1, 2016--Move in response to investor appetite for physically-backed exposure to robotics and automation sector
TER cut from 95bps to 80bps for first UCITS ETF providing exposure to global robotics and automation sector, reflects investment theme becoming mainstream
|WisdomTree introduces yuan share class for S&P China 500 ETF|
|September 1, 2016--Exchange-traded fund provider WisdomTree has introduced a yuan share trading class for its recently launched London Stock Exchange-listed ICBCCS WisdomTree S&P China 500 UCITS ETF.|
|Schaeuble Pushes Financial Transaction Tax in Election Move|
|September 1, 2016--Coalition agreements in Berlin, Vienna keep tax plan on table
Talks seen dragging on even if no deal is reached in October
|Eurex: Trading statistics August 2016|
|September 1, 2016--In August 2016, the international derivatives market Eurex, part of Deutsche Börse Group, recorded an average daily volume of 4.1 million contracts (August 2015: 5.8 million).|
|The Spanish Stock Exchange traded euro31 billion in August|
|September 1, 2016-Improvement of IBEX 35 spread in relation to previous months
The equity trading volume in the first eight months of the year came in at €471 billion
The number of trades until August reached 37.7 million
Trading volume in IBEX 35 Futures up to August was down 11% year on year
|Moscow Exchange introduces changes to the market making programme for equities and Eurobonds|
|September 1, 2016--As of 1 September 2016, Rosneft (ROSN) and VTB (VTBR) ordinary shares will be added to the market making programme, while Surgutneftegaz (SNGSP) and Sberbank (SBERP) preferred shares will be excluded.|
|Revised lists of the Moscow Exchange Indices announced|
|September 1, 2016--Moscow Exchange has revised the constituent lists of the Moscow Exchange Indices as well as free floats effective from September 16 to December 15, 2016.|
|Turnover at Deutsche Borse's cash markets at 93.3 billion euros in August|
|September 1, 2016--Order book turnover on Xetra, Börse Frankfurt and Tradegate Exchange across all asset classes stood at €93.3 billion in August (August 2015: €142.3 billion).|
|S&P Dow Jones Indices Market Attributes: Europe Index Dashboard|
|August 31, 2016--August proved to be a positive month for European equity indices; all our regional benchmarks rose.|
|ETFGI reports assets invested in ETFs/ETPs listed in Europe reached a new record of 539 billion US dollars at the end of July 2016|
|August 30, 2016--ETFGI, the leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported assets invested in ETFs/ETPs listed in Europe reached a new record of US$539 billion at the end of July 2016.|
|Euro zone banks have too much cash for their own good|
|August 30, 2016--Excess liquidity to hit 1 trillion euros for first time
Negative deposit rate has cost banks 2.6 bln euros.
|ESMA sees risk outlook deteriorate for EU securities markets|
|August 30, 2016--The European Securities and Markets Authority (ESMA) latest risk report has found that the overall assessment of risk levels in EU markets under its remit remains unchanged.|
|ESMA Report on Trends, Risks and Vulnerabilities|
|August 30, 2016--ESMA has published the Report on Trends, Risks and Vulnerabilities No.2, 2016 report|