Americas ETP News
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AdvisorShares files with the SEC
August 16, 2011--AdvisorShares has filed a post-effective mendment, registration statement with the SEC for the STAR™ Global Buy-Write ETF
NYSE Arca Ticker: VEGA.
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Source: SEC.gov
DB Global Equity Research: North America: ETP Market records $7.6bn in outflows
August 16, 2011--Major outflows follow dimmer economic outlook and high market volatility
For somebody looking at weekly figures it would be easy to miss the most active and volatile week since March 2009. While the S&P 500 closed just 1.72% lower relative to the previous Friday, following the historic S&P downgrade of the US Long Term debt from AAA to AA+, the index jumped up and down +/- 5% during the week.
The total US ETP flows from all products were $7.6bn of outflows last week vs $5.6bn of outflows the previous week, setting the YTD weekly flows average at +$1.7bn. US ETP AUM lost $17bn, closing at $1.00 trillion or 0.7% up YTD.
Long only equity ETPs recorded $4.6bn of outflows last week vs $7.8bn of outflows the previous week. From a geographic allocation perspective, most segments were in red again, US-focused, EM, and DM ex US ETPs all experienced outflows of -$2.6bn, -$1.4bn and -$753m last week, respectively.
Long-only fixed Income ETPs recorded outflows of $710m last week. Sovereign ETPs received $318m in inflows; while Corporates recorded the largest outflows (-$1.1bn). Commodity ETPs recorded outflows of $1.5bn last week. At a sub sector level, Crude Oil ETPs recorded the largest inflows with $0.59bn; while Gold products had $1.1bn in outflows.
The overall reading of last week’s long only ETP flows is that the risk off trade keeps expanding in size. During this period, long only equity ETPs with the additional $4.6bn of outflows totaled $5.6bn of outflows since the beginning of the quarter (-$15bn in the last three weeks) (Figure 1).
In addition to risk off trades, flows data also suggests that investors were engaged in a variety of market timing trades in an attempt to exploit any possible opportunity arising from these volatile markets. Gold, Equity Energy sector, and Commodity Energy products (with flows of -$1.1bn, +$1.0bn, and +$0.57bn, respectively) were among such trades. (Figure 2)
New Launch Calendar: new India Consumer ETF
There was one new product launched in the NYSE Arca during the last week. The new ETP offers access to the Indian Consumer sectors (
Turnover Review: trading soars as VIX approaches March 2009 levels
Total weekly turnover increased by 19.9% to $871bn vs. $727bn in the previous week. The largest increase was on Equity ETP turnover which rose by $120bn or 18.7% to $764bn. Commodity ETPs turnover increased by $15.3bn to $60bn last week, mainly driven by Gold ETPs. Finally, Fixed Income products turnover increased by 27.1% totaling $41.4bn at the end of last Friday.
Assets Under Management (AUM) Review:
AUM growth almost flat YTD
Following another round of market turmoil, ETP AUM dropped by $17bn or 1.7% falling to $1.00 trillion as of the end of last Friday. Assets on a YTD basis have recorded just a $7.3bn (0.7%) increase.
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Source: Deutsche Bank - Equity Research
Invesco PowerShares Announces Dividend Distribution for the PowerShares S&P 500® Low Volatility Portfolio (SPLV)
August 16, 2011 – Invesco PowerShares Capital Management LLC, a leading global provider of exchange-traded funds (ETFs) with more than $57 billion in franchise assets, today announced the dividend distribution for the recently listed PowerShares S&P 500® Low Volatility Portfolio (SPLV).
“Research studies have shown that U.S. stocks with low volatility tend to provide high risk-adjusted returns,1" said Ben Fulton, Invesco PowerShares managing director of global ETFs. “For advisors seeking to allocate lower volatility into the portfolio core, the PowerShares S&P 500® Low Volatility Portfolio (SPLV) may provide a better degree of protection in down cycles while still participating in upward trending cycles. SPLV is currently yielding 55 percent more than the S&P 500® Index.2"
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Source: Invesco PowerShares
Fitch affirms US credit rating
August 16, 2011--Fitch Ratings said on Tuesday it affirmed the United States' top-notch credit rating at AAA, giving the world's largest economy a reprieve after it was downgraded by Standard & Poor's little more than a week ago.
Fitch said the outlook for the rating was stable.
"The affirmation of the US 'AAA' sovereign rating reflects the fact that the key pillars of (the) US' exceptional creditworthiness remains intact: its pivotal role in the global financial system and the flexible, diversified and wealthy economy that provides its revenue base," Fitch said.
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Source: FIN24
Treasury International Capital Data For June
August 15, 2011--The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for June 2011. The next release, which will report on data for July 2011, is scheduled for September 16, 2011.
Foreign residents decreased their holdings of long-term U.S. securities in June — net sales were $11.5 billion. Net sales by private foreign investors were $23.0 billion, and net purchases by foreign official institutions were $11.5 billion.
At the same time, U.S. residents decreased their holdings of long-term foreign securities, with net sales of $15.2 billion.
Taking into account transactions in both foreign and U.S. securities, the net foreign purchases of long-term securities were $3.7 billion. After adjustments, such as estimates of unrecorded principal payments to foreigners on U.S. asset-backed securities, are included, the overall net foreign acquisition of long-term securities is estimated to have been negative $8.0 billion in June.
Foreign holdings of all dollar-denominated short-term U.S. securities and other custody liabilities decreased $14.7 billion.
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Source: US Department of the Treasury
iShares files with the SEC
August 15, 2011--iShares has filed a post-effective amendment, registration statement with the SEC.
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Source: SEC.gov
BNY Mellon Composite Depositary Receipt Index Tops 1,000 DR Programs
Greater than 300% growth in unsponsored ADR programs driving expanded investment options;
BNY Mellon DR Indices now primary benchmark for 19 ETF funds
August 15, 2011--BNY Mellon, the global leader in investment management and investment services, announced that the BNY Mellon Composite Depositary Receipt IndexSM grew to 1,025 constituent depositary receipts (DRs) for issuers from 49 countries as of June 30, 2011 – an increase in coverage of more than 20% since the index was created in October 2009.
The rise in DRs in the BNY Mellon Composite DR Index is due mainly to the rapid growth of ‘unsponsored’ ADRs. Unsponsored ADRs are issued by one or more depositary banks in response to market demand but without a formal agreement with the underlying issuer, while sponsored ADRs are issued by a single depositary appointed by the issuer. Unsponsored ADRs generally trade over-the-counter (OTC), while sponsored ADRs trade either on the OTC market or on major U.S. stock exchanges.
The BNY Mellon Classic ADR Index (a subset of the Composite DR Index) illustrates the point. On its launch in February 2009, it was comprised of 60 unsponsored and 590 sponsored ADRs. By June 2011, the number of unsponsored programs had quadrupled to 249, while sponsored ADRs rose 20% to 699.
“The growing acceptance and use of unsponsored ADRs allows us to satisfy investors’ diversification demands, and that’s reflected in the greater breadth of country and regional coverage provided by BNY Mellon’s family of DR indices,” said Michael Cole-Fontayn, CEO of BNY Mellon’s Depositary Receipts business.
"Index licenses are up more than 30% year-to-date, and our DR indices are now the primary benchmark for 19 ETF products," said Michael Finck, BNY Mellon's DR head of global service delivery. "As the number of DRs in our indices increase, we're able to offer investors convenient, cost-effective access to even more international investment choices."
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Source: BNY Mellon
Direxion files with the SEC
August 15, 2011--Direxion has filed a post-effective amendment, registration statement with the SEC for the
Direxion Large Cap Insider Sentiment Shares
Direxion All Cap Insider Sentiment Shares
Direxion Large Cap Tactical Advantage Shares
Direxion S&P 1500® Volatility Response Shares
Direxion S&P 600® Volatility Response Shares
Direxion S&P 500® Volatility Response Shares
Direxion S&P Latin America 40 Volatility Response Shares
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Source: SEC.gov
Natixis Asset Management files with the SEC
August 15, 2011--Natixis Asset Management has filed an application for exemptive relief with the SEC.
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Source: SEC.gov
Natixis Asset Management files with the SEC
August 15, 2011--Natixis Asset Management has filed an application for exemptive relief with the SEC for actively-managed ETFs.
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Source: SEC.gov
