Americas ETP News
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Invesco Study: ETF Usage Increasing Among RIAs
Risk Management Remains Top of Mind as Advisers Pursue Strategic Mix of Products
October 17, 2012--Registered Investment Advisers (RIAs) expect to see increased usage of Exchange-Traded Funds (ETFs) in client portfolios, while aversion to risk remains high, according to results of an Invesco market research study released today.
RIAs surveyed believe ETFs will make up 24 percent of portfolio allocations over the next 12 months and 33 percent over the next three years, representing a 10 percent increase over results reported in Invesco's survey of RIAs in 2011.
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Source: Invesco PowerShares
Knight CEO: Company forming risk committee
Knight's loss from Aug. 1 trading error came in at $461.1 million
Knight forms new risk committee at board level
Business momentum returning despite difficult climate, CEO says
(Updates with comments from Knight CEO.)
October 17, 2012--Knight Capital Group has formed a new risk committee of directors as the electronic trading firm continues to rebuild following a catastrophic trading error in August, Knight's top executive said Wednesday.
Technology staff at Knight continue to analyze the Aug. 1 trading mishap, which drove a $461.1 million loss for Knight and forced the Jersey City, N.J., firm to seek rescue funding from a group of customers and rivals.
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Source: MarketWatch
Van Eck files with the SEC
October 17, 2012--Van Eck has filed a post-effective amendment, registration statement with the SEC for the Non-Agency RMBS ETF.
view filing
Source: SEC.gov
ETF Spotlight: New Dividend ETFs Being Created, Just Not Equally
October 17, 2012--At the beginning of the year we reviewed an article from Dow Jones' MarketWatch titled, "10 money-making investment ideas for 2012," which shared a sentiment popular among nearly every strategist on Wall Street at the time-"
Stick with dividend-paying growth stocks". Their premise, similar to many, and plausible to even more, was that "U.S. corporate balance sheets — the fundamentals — are in excellent shape overall. Still, in a slow-growth climate the advantage goes to the best of the best. These companies tend to be in areas that are less economically sensitive. Typically they’re large-caps, with a 'wide moat' of business, strong cash flow and a history of using capital for productive purposes including acquisitions, share buybacks and consistently higher dividends." Dividend stocks were about the safest and easiest recommendation an advisor could make to clients early in 2012 as firms generally supported the concept and investors were at least more receptive to this segment of the market after seeing the S&P 500 Index [SPX] finish 2011 with 0% returns.
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Source: Dorsey, Wright & Associates
CFTC Issues Final Rule Amending Existing Commission Regulations To Incorporate Swaps
October 16, 2012--The Commodity Futures Trading Commission (CFTC) today approved a final rule that amends certain current regulations in order to implement aspects of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).
The Dodd-Frank Act amended the Commodity Exchange Act in numerous ways to give the Commission the authority to regulate swaps. Today’s final rule amends certain existing Commission regulations to integrate them with the statutory and regulatory framework established under the Dodd-Frank Act. The Commission voted 5 to 0 via seriatim to approve the final rule, which will become effective 60 days after publication in the Federal Register.
Specifically, the CFTC has amended certain definitions and recordkeeping regulations so that they apply to both futures and swaps. As an example, futures commission merchants and introducing brokers will now be required to follow recordkeeping rules for swap transactions that are equivalent to those rules they presently follow for futures transactions.
view the Final Rule-Adaptation of Regulations to Incorporate Swaps
Source: CFTC.gov
S&P Dow Jones Indices Announces Changes To The S&P/TSX Canadian Indices
A Deletion From The S&P/TSX Venture Composite Index
October 16, 2012--S&P Canadian Index Services will make the following changes in the S&P/TSX Canadian Indices:
The TSX Venture Exchange has announced that, after the close of trading on Tuesday, October 16, 2012, Fortress Minerals Corp. (TSXVN:FST) will transfer to NEX to trade under the new ticker symbol FST.H.
At the same time the company will be removed from the S&P/TSX Venture Composite Index.
Source: S&P Dow Jones
Treasury International Capital Data for August
October 16, 2012--The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for August 2012. The next release, which will report on data for September 2012, is scheduled for November 16, 2012.
The sum total in August of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a monthly net TIC inflow of $91.4 billion. Of this, net foreign private inflows were $50.0 billion, and net foreign official inflows were $41.4 billion.
Foreign residents increased their holdings of long-term U.S. securities in August – net purchases were $78.5 billion. Net purchases by private foreign investors were $48.6 billion, and net purchases by foreign official institutions were $29.9 billion.
At the same time, U.S. residents decreased their holdings of long-term foreign securities, with net sales of $11.5 billion.
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Source: US Department of the Treasury
One-year-old ETF beats hedge funds, stock market in first year
October 16, 2012--A one-year-old actively managed exchange-traded stock fund has beaten a number of market benchmarks in its first year, including most hedge funds, the ETF sponsor AdvisorShares said on Tuesday.
Through September 30, the TrimTabs Float Shrink ETF gained 35.14 percent since it launched on October 4 last year, beating the benchmark Russell 3000 Index, which rose 32.85 percent over the same period, as well as the S&P 500 index.
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Source: Reuters
EGShares Announces Launch of Emerging Markets Core ETF (Ticker: EMCR) to Provide a More Diversified Emerging Market Core Holding
EMCR tracks the S&P Emerging Markets Core Index, which provides greater country and industry diversification than conventional EM benchmark indices
October 16, 2012--Emerging Global Advisors today announced the launch of the EGShares Emerging Markets
Core ETF (Ticker: EMCR), an exchange-traded fund (ETF) that aims to provide a diversified core approach for investors seeking broad exposure to emerging market (EM) equities.
The EGShares Emerging Markets Core ETF is the only ETF that tracks the S&P Emerging Markets Core Index, an index designed as an investment index rather than a benchmark. The S&P Emerging Markets Core Index has less industry and mature economy concentration than conventional benchmarks such as the MSCI Emerging Markets Index and the
FTSE Emerging Index.
The initial concept for the S&P Emerging Markets Core Index was conceived by Emerging Global Advisors. The Index, designed, calculated, published and maintained by S&P Dow Jones Indices, seeks to avoid the industry and mature economy concentrations of conventional benchmarks which result from their market-cap weighting approach, in addition to their inclusion of developed economy constituents. It seeks to reduce concentration in legacy frontier market industries, broaden country diversification and tap into available liquidity to gain exposure to potentially emerging industries. The rules-based Index focuses on industry groups as index building blocks, contains no developed economy constituents and adopts an equal weighting modified by a country-capping approach.
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Source: EGShares
Northern Trust launches money fund-like ETF
October 16, 2012--Northern Trust's FlexShares exchange traded fund family has entered the hotly contested field of money fund substitute ETFs.
Its new Ready Access Variable Income ETF, or RAVI, invests actively in a global portfolio of shorter-term holdings including investment-grade bonds, debt securities and other debt issued by governments, corporations and banks.
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Source: FT.com
