Americas ETP News
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Use of ETPs by institutional investors still elusive
December 23, 2013--Based on quarter-end and annual filings, many of the largest (and smallest) pension funds in the U.S. would appear to have largely ignored the $1.6 trillion exchange-traded product market.
Only a handful of ETPs consistently show up as long-term holdings, from quarter to quarter.
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Source: Pensions & Investments
Morgan Stanley ETF Weekly Update
December 23, 2013--US ETF Weekly Update
Weekly Flows: $7.9 Billion Net Inflows
$174.3 Billion Net Inflows YTD
ETF Assets Stand at $1.7 Trillion, up 23% YTD
Six ETF Launches Last Week
No ETF News Last Week
US-Listed ETFs: Estimated Flows by Market Segment
ETFs posted net inflows for the second consecutive week ($7.9 bln last week)
Last week's net inflows were led by US Mid-Cap ETFs at $3.0 bln; conversely, Commodity ETFs exhibited another week of net outflows at $1.1 bln, the most of any category we measured
11 of the 15 categories we measured posted net inflows last week
ETFs have exhibited net inflows 35 out of 51 weeks YTD
ETF assets stand at $1.7 tln, up 23% YTD; $174.3 bln net inflows YTD
13-week flows remain mostly positive among asset classes; combined $46.5 bln in net inflows
International - Developed ETFs generated net inflows of $23.4 bln over the last 13 weeks, the most of any category we measured and 50% of all ETF net inflows over the last 13 weeks
Despite International - Developed ETF flow success over the last 13 weeks, International - Emerging ETFs have posted net outflows of $3.5 bln over the last 13 weeks; major Emerging Markets benchmarks have been notable laggards from a performance standpoint over this time period relative to Developed Markets
US-Listed ETFs: Estimated Largest Flows by Individual ETF
Vanguard Mid-Cap ETF (VO) posted net inflows of $1.3 bln this past week, the most of any ETF
Nine of the 10 ETFs to generate the largest net inflows last week were US equity-based with Vanguard being a big beneficiary; some of Vanguard's net inflows coincide with quarterly rebalancing
Five of the 10 ETFs to exhibit the largest net inflows have a small-/mid-capitalization tilt
Despite a difficult last week, the SPDR S&P 500 ETF (SPY) has posted net inflows of $5.9 bln over the last 13 weeks, the most of any ETF
Over the last 13 weeks, the Vanguard FTSE Emerging Markets ETF (VWO) has exhibited net outflows of $4.3 bln, the most of any ETF
US-Listed ETFs: ETF Dollar Volume
ETF monthly $ volume as a % of listed trading volume dropped to 24% in November (had been essentially flat the prior four months)
ETF monthly $ volume as a % of listed trading volume is at its lowest level since May 2008
ETF $ volume increased last week to $368 bln, up $89 bln from the prior week and 26% above its 13-week average
US Large-Cap ETFs accounted for 47% of ETF $ volume last week, up from 42% the prior week
US-Listed ETFs: Short Interest Data Unchanged: Based on data as of 11/29/13
The SPDR S&P 500 ETF (SPY) had the largest increase in USD short interest at $2.2 bln
While SPY's shares short (280.1 mln) are at one of their highest levels in the past year and a half, the iShares Russell 2000 ETF (IWM) shares short are at their lowest level since 4/30/09 (111.2 mln)
596 ETFs exhibited short interest increases while 566 experienced short interest declines over the last period
Aggregate ETF USD short interest decreased by $2.2 bln over the period ended 11/29/13
The average shares short/shares outstanding for ETFs is currently 4.1%, flat from last period
Six of the 10 most heavily shorted ETFs as a % of shares outstanding are industry based
The SPDR Oil & Gas Exploration & Production ETF (XOP) is the most heavily shorted ETF with shares short as a % of shares outstanding of 240%
Based on multiple borrowings and the ability to continuously create new shares, shares short as a % of shares outstanding can exceed 100% (only eight ETFs exhibited shares short as a % of shares outstanding greater than 100%)
US-Listed ETFs: Most Successful Recent Launches by Assets
$6.5 bln in total market cap of ETFs less than 1-year old
Fixed Income ETFs account for 25% of the market capitalization of ETFs launched over the past year; over the last 13 weeks, Fixed Income ETFs have generated net inflows of $339 mln
143 new ETF listings and 48 closures/delistings YTD
The top 10 most successful launches make up 50% of the market cap of ETFs launched over the past year
Seven ETF sponsors and two asset classes represented in top 10 most successful launches; we note that the representation of funds with an income orientation is currently five (down from seven at the end of the second quarter)
The Vident International Equity Fund (VIDI) posted net inflows of $120 mln last week, the most of any recently launched ETF, and its market cap is currently $490 mln; VIDI owns international equities in countries that exhibit favorable conditions for growth
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Source: Morgan Stanley
SEC Issues Annual Staff Reports on Credit Rating Agencies
December 23, 2013--The Securities and Exchange Commission today issued its annual staff report on the findings of examinations of credit rating agencies registered as nationally recognized statistical rating organizations (NRSROs). The agency also submitted an annual staff report on NRSROs to Congress.
"The two reports reflect an evolving industry," said Thomas J. Butler, director of the SEC's Office of Credit Ratings. "The examination report shows that the SEC’s vigilant oversight is improving compliance at NRSROs, while the annual report to Congress depicts an industry that is growing more competitive and transparent."
view the 2013 SUMMARY REPORT OF COMMISSION STAFF’S EXAMINATIONS OF
EACH NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION
Source: SEC.gov
CFTC.gov Commitments of Traders Reports Update
December 20, 2013--The current reports for the week of December 17, 2013 are now available.
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Source: CFTC.gov
CFTC's Division of Market Oversight Issues Time-Limited No-Action Relief from Certain Requirements of Part 45 and Part 46 of the Commission's Regulations, for Certain Swap Dealers and Major Swap Participants Established under the Laws of Australia, Canada
December 20, 2013--The Commodity Futures Trading Commission's (Commission) Division of Market Oversight (Division) issued a letter today providing time-limited relief to Commission-registered swap dealers (SDs) and major swap participants (MSPs) that are non-U.S. persons (non-U.S. SDs and non-U.S. MSPs, respectively) established under the laws of Australia, Canada, the European Union, Japan or Switzerland,
and that are not part of an affiliated group in which the ultimate parent entity is a U.S. SD, U.S. MSP, U.S. bank, U.S. financial holding company or U.S. bank holding company, from certain requirements of the swap data reporting rules set forth at Part 45 and Part 46 of the Commission's regulations.
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Source: CFTC.gov
CFTC Approves Comparability Determinations for Six Jurisdictions for Substituted Compliance Purposes
The Commodity Futures Trading Commission (Commission) today approved a series of broad comparability determinations that would permit substituted compliance with non-U.S. regulatory regimes as compared to certain swaps provisions of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act)
and the Commission's regulations.
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Source: CFTC.gov
CFTC Approves Limited-Purpose Swap Dealer Designation for State Street Bank and Trust Company
December 20, 2013--The U.S. Commodity Futures Trading Commission (CFTC or Commission) today approved an Order granting a limited purpose swap dealer (SD) designation to State Street Bank and Trust Company (SSBT) with respect to its activities in foreign exchange products that are swaps (FX Products),
marking the second time that a limited-purpose SD designation order has been granted.
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Source: CFTC.gov
S&P Dow Jones Indices Announces Changes To The S&P/TSX Canadian Indices
Deletions From The S&P/TSX Preferred Share Indices
December 20, 2013--S&P Dow Jones Canadian Index Services will make the following changes in the S&P/TSX Canadian Indices:
Industrial Alliance Insurance & Financial Services Inc. (TSX:IAG) has announced its intention to redeem for $CDN 25.00 cash per share all of the outstanding shares of its 6.20% Non-Cumulative 5-Year Rate Reset Class A Preferred Shares,
Series 'C' (TSX:IAG.PR.C). The shares of this issue will be removed from the S&P/TSX Preferred Share Laddered Index after the close of trading on Tuesday, December 31, 2013.
Great-West Lifeco Inc. (TSX:GWO) has announced its intention to redeem for $CDN 25.00 cash per share all of the outstanding shares of its 6.00% 1st Preferred Shares, Series 'J' (TSX:GWO.PR.J). The shares of this issue will be removed from the S&P/TSX Preferred Share Laddered Index after the close of trading on Tuesday, December 31, 2013.
Source: S&P Dow Jones Canadian Index Services
US stocks finish higher on the week, with Dow and S&P at records
December 20, 2013--U.S. stocks climbed on Friday, with the Dow and S&P 500 scoring record closes, after data had the U.S. economy growing faster-than-projected in the third quarter, increasing optimism about the economic outlook.
"No one is taking all the chips off the table with two weeks left," said Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. Money managers in November could have easily closed out their year and had "a great December in Aruba and they didn't," he added.
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Source: CNBC
Simple Alternatives Hires ETF Guru Bond
December 20, 2013--Don't let the name fool you: he may be a Bond, but H. Bruce Bond's expertise is ETFs and he's bringing that expertise to alternative investment manager Simple Alternatives.
Bond will also become a minority shareholder in the Ridgefield, Conn.-based mutual fund manager that focuses on liquid alternative strategies.
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Source: Fin Alternatives
