Americas ETP News
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ETF Inflows On Pace To Exceed $100 Billion In 2011, According To State Street Global Advisors’ 2011 Mid Year ETF Outlook Report
July 28, 2011--State Street Global Advisors (SSgA)*, the asset management business of State Street Corporation (NYSE: STT), today released a new report titled, 2011 Mid Year SPDR(R) ETF Outlook, which details the developments that shaped the Exchange Traded Fund (ETF) industry's growth during the first half of 2011 and offers insights into the trends expected to drive asset flows through year-end.
Against a backdrop of historically low interest rates and global economic uncertainty, US ETFs attracted an impressive $56.3 billion in new inflows during the first six months of 2011, up from $37.3 billion during the first half of 2010. According to the report, ETF investors increased their exposure to fixed-income, developed international markets, and dividend strategies while shifting away from emerging markets and small cap equities during this same period of time.
"With demand for income and non-correlated assets on the rise, a growing universe of professional and retail investors are using ETFs to access precise sources of return and improve the diversification of their portfolios," said Kevin Quigg, global head of the SPDR ETF Capital Markets Group at State Street Global Advisors. "If flows remain on their current pace, 2011 will mark the fifth consecutive year that ETFs attract more than $100 billion in positive cash flows."
Among the key themes highlighted in the 2011 Mid Year SPDR ETF Outlook report are:
Growth of ETF industry asset flows by category;
Increased investment in ETFs that provide access to high dividend paying stocks; and
Outlook for ETFs that track real assets and non-US equities and bonds,
as investors rethink asset allocation. For more information on these developments and others emerging in the ETF industry, financial professionals can download a copy of the 2011 Mid Year SPDR ETF Outlook report at SPDR University (www.spdru.com), State Street's award winning online educational resource for investment professionals.
Source: SPDR Exchange Traded Funds
ETF Inflows Set to Exceed $100 Billion in 2011
July 28, 2011--U.S. exchange-traded funds (ETFs) are on a roll so far in 2011, according to State Street Global Advisors, which released its 2011 mid-year ETF outlook report on Thursday.
The report revealed that ETF inflows are set to exceed $100 billion in 2011, a signal of strength in the ETF industry despite historically low interest rates, persistently high unemployment, and global economic uncertainty. U.S. ETFs raked in $56.3 billion in new inflows during the first six months of 2011, an increase of 50.9% over the first half of 2010 and on pace to surpass last year’s total of $111.5 billion. ETF investors poured money into fixed-income, developed international markets, and dividend strategies and moved away from emerging markets and small cap equities during this period.
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Source: Financial Planner
AltaVista's Model ETF Portfolios Celebrate Four Years of Outperformance
Three model ETF portfolios demonstrate the real-world benefits of AltaVista's ALTAR Score rating methodology by beating their benchmarks over the four years since inceptions.
July 28, 2011-- AltaVista’s model ETF portfolios celebrated their fourth anniversary posting solid track records. The U.S. Equity model has returned a cumulative 3.5 percentage points over the S&P500 index since inception on June 15, 2008, while the International model, a non-US equity portfolio, enjoyed cumulative excess returns of 11.3 percentage points versus its benchmark over the same period.
A third model, Global Fundamentals, which includes both U.S. and foreign equity ETFs, is 47 months old and has bested its benchmark by 7.4 percentage points since inception.
The model portfolios are constructed using AltaVista’s proprietary research, including the ALTAR Score™ rating, under a relative value strategy. ATLAR Score™ is short for AltaVista Long Term Annual Return forecast (details here).
“Most fund ratings simply tell you what has performed well until now, encouraging investors to allocate assets to areas that have already increased in price and away from those that have declined—in essence a buy high, sell low strategy,” explains Michael Krause, President and founder of AltaVista Research. “The ALTAR Score™ works differently by encouraging investors to dynamically allocate assets away from areas that may be overheated and into areas of more value going forward.”
Source: AltaVista Research
Morgan Stanley-ETFs Exhibited Net Inflows of $29.5 Billion in 2Q11
July 28, 2011--There have been 160 new ETFs listed in the US so far in 2011, of which 90 were issued in the
second quarter. So far this year, four ETFs have been liquidated, resulting in net new issuance of 156 ETFs. As of July 21, 2011, there were 35
issuers with 1,123 ETFs listed in the US.
Net inflows into US-listed ETFs were $29.5 billion during the second quarter of 2011. This number is below the average quarterly net cash
inflows of $34.7 billion over the past three years. However, we believe that $29.5 billion is a respectable number considering equity markets, as
measured by the MSCI AC World Index, only returned 0.4% this past quarter.
The largest net cash inflows this past quarter went into fixed income and emerging market equity ETFs. These asset classes had net cash inflows of $9.6 billion and $4.3 billion, respectively, in the second quarter of 2011. ETFs providing exposure to commodities had the largest net cash outflows at $2.8 billion in the second quarter. For the first half of 2011, fixed income ETFs had the highest net cash inflows at $16.1 billion followed by international developed market equity ETFs at $13.3 billion.
US ETF industry assets of $1,113 billion are 12% higher than their level at the end of 2010. Despite the growth of the ETF market, it remains concentrated with three providers and 20 ETFs accounting for almost 78% and 47% of industry assets, respectively.
ETFs Exhibited Net Inflows of $29.5 Billion in 2Q11
This number is below the average quarterly net cash inflows of $34.7 billion over the past three years.
However, we believe that $29.5 billion is a respectable number considering equity markets, as measured by the
MSCI AC World Index, only returned 0.4% this past quarter as concerns over a hard landing in China, the European
debt crisis, and the sustainability of the US recovery reduced demand for risk assets. As of July 21, 2011, ETF
total assets were at $1,113 billion, which is roughly 12% above the level at the end of 2010. In the second quarter of 2011, 90 ETFs were launched that currently have approximately $844.9 million in assets. An additional seven
ETFs have been issued since the end of the second quarter, bringing the total number of US-listed ETFs to 1,123.
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Source: Morgan Stanley
AllianceBernstein files with the SEC
July 28, 2011--AllianceBernstein has filed a second amended and restated application for exemptive relief with the SEC.
view filing
Source: SEC.gov
Pimco files with the SEC
July 28, 2011--Pimco has filed a post-effective amendment, registration statement with the SEC for the PIMCO Total Return Exchange-Traded Fund
view filing
Source: SEC.gov
CFTC Commissioner Scott D. O’Malia Seeks Public Comment on the Review of Swaps for Mandatory Clearing
July 28, 2011--On July 28, 2011, Commissioner Scott D. O’Malia of the Commodity Futures Trading Commission (CFTC) issued a letter to the public seeking comment on the manner in which the Commission should determine (i) which swaps would be subject to the clearing requirement and (ii) whether to grant a stay of a clearing requirement.
“As I stated at the July 19th meeting, market participants, as well as international regulators, have requested more transparency and clarity regarding substantive criteria for mandatory clearing determinations. I view this request for public comment as a crucial first step towards the development of such criteria. I hope that any comments received will inform a public roundtable, as well as written guidance,” Commissioner O’Malia said.
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Source: CFTC.gov
Van Eck files with the SEC
July 27, 2011--Van Eck has filed a post-effecive amendment, registration statement with the SEC for the Dim Sum Bond ETF.
view filing
Source: SEC.gov
WisdomTree Lists on NASDAQ Global Market
July 27, 2011-- WisdomTree Investments, Inc. (NASDAQ:WETF - News), an exchange-traded fund (“ETF”) sponsor and asset manager, today announced the Company listed its common stock on The NASDAQ Global Market under symbol “WETF.”
WisdomTree CEO Jonathan Steinberg said, “In 2006 we launched our first ETFs and in five years have become the 8th largest sponsor with $13.4 billion in assets and a track record of product innovation. Today’s NASDAQ listing is an important milestone and represents the next chapter of growth for the Company.”
WisdomTree Chairman Michael Steinhardt commented, “From the beginning, Jonathan and I had a shared objective of building an asset management firm with a philosophy focused on performance in the investor-friendly ETF structure. I believed then, and am further convinced today, that this powerful combination makes for a tremendous opportunity.”
Source: WisdomTree Investments, Inc
Deutsche Bank -US ETF Market Weekly Review : Market rally pushes ETP assets near all-time highs
Deutsche Bank - Equity Research - North America
July 27, 2011--ETP flows suggest that investors returned to risk – at least during last week
Last week most of the equity markets around the globe rallied driven by positive corporate earnings data and the new Greek aid package. Equity markets in the US (S&P 500) soared by 2.19%.
The total US ETP flows from all products registered $4.2bn of inflows during last week vs $1.4bn of outflows the previous week, setting the YTD weekly flows average at +$2.4bn. US ETP AUM gained $23bn, closing at $1.12 trillion or 12.5% up YTD.
Long only ETP Flows reflect the current uncertain market environment as we start Q3. US focused Equity ETPs have clearly dominated the flows and last week they added up $3.7bn in new cash. However this dominance has not been exclusive as flows have been very volatile and, at times, have swapped the leading position with Precious Metals ETP flows. We believe that although the most recent data points out to a comeback to risky assets, there are still some outstanding issues (e.g. US debt ceiling) that need to be sorted out before we could talk about long lasting trends.
Long only equity ETPs recorded $3.4bn of inflows last week vs $4.2bn of outflows the previous week. From a geographic allocation perspective, US-focused ETPs concentrated the bulk of the inflows (+$3.7bn), followed by Global ETPs with +$283m; while EM, and DM ex US ETPs experienced outflows of $452m, and $192m in the same period, respectively.
Long-only fixed Income ETPs recorded inflows of $362m last week. Corporate ETPs received $190m in inflows, followed by broad benchmarked funds with $159m. Commodity ETPs recorded inflows of $876m last week. At a sector level, Precious Metals ETPs recorded the largest inflows with $913m; while Energy ETPs registered the largest outflows with $127m.
New Launch Calendar: 2 new ETNs tracking Internet IPOs
There were 2 new ETNs listed on the NYSE Arca during last week. Both ETNs offer exposure to Internet IPOs with and without leverage respectively (See Figure 3 for more details).
Turnover Review: Floor activity declines on lower volatility
Total weekly turnover declined by 17.1% to $331bn vs. $400bn in the previous week. The largest decrease was on Equity ETP turnover which fell by $63bn or 18.1% to $284bn. Commodity ETPs turnover also dropped driven by Gold and Crude Oil with a total weekly turnover of $30.6bn last week. Similarly, Fixed Income products turnover decreased totaling $13.1bn at the end of last Friday, about 9.5% lower from the previous week.
Assets Under Management (AUM) Review: rally adds $23bn to ETP assets
Equity market gains around the globe added $23.2bn or 2.1% to US ETP assets during last week. ETP AUM almost passed the April 29th all-time high level with $1.12 trillion as of the end of last Friday; recording a $124bn (12.5%) increase on a YTD basis.
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Source: Deutsche Bank - Equity Research
