Americas ETP News
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High yield ETF influence on underlying bond market jumps
March 13, 2023--A study of five of the largest ETFs finds they accounted for nearly half the daily trade of the bonds they owned in 2022
The influence of some corporate bond exchange traded funds on their underlying holdings has shot up, as electronification of fixed income trading creates an upheaval in how bonds are traded.
Research by Coalition Greenwich, a data analytics company, shows the trading volumes of 12 of the largest corporate bond ETFs rose from 18 per cent of the turnover in their constituent investment grade and high-yield bonds in 2021 to 23 per cent in 2022.
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Source: ft.com
Vanguard Launches Short-Term Tax-Exempt Bond ETF
March 9, 2023-- Vanguard today launched Vanguard Short-Term Tax-Exempt Bond ETF (Ticker: VTES). The new municipal bond index ETF is managed by Vanguard Fixed Income Group and is designed for tax-sensitive investors with a short-term time horizon and low interest rate risk tolerance.
"Vanguard Short-Term Tax-Exempt Bond ETF is built to optimize tax efficiency for investors seeking to allocate to the shorter end of the municipal bond market," said Sara Devereux, global head of Vanguard Fixed Income Group. "The new ETF complements our broad fixed income lineup and provides clients with another avenue to tap our municipal bond team's talent and capabilities."
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Source: Vanguard
Vanguard's First New ETF in Two Years Targets Short-Term Munis
March 9, 2023-- VTES tracks short-maturity munis and charges a fee of 0.07%
First new Vanguard fund since Ultra Short Bond ETF in 2021
Vanguard Group Inc.'s first new exchange-traded fund in two years is setting sail at a turbulent time for municipal debt.
The Vanguard Short-Term Tax-Exempt Bond ETF (ticker VTES), which tracks an index of municipal bonds due in seven years or less, begins trading Thursday, according to a press release. The asset-management giant's last new ETF was the Vanguard Ultra Short Bond ETF (VUSB), which debuted in April 2021 and now has $3.3 billion of assets.
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Source: bloomberg.com
ETFGI reports the ETFs industry in Canada celebrates the 33rd anniversary of the listing of the first ETF on March 9th
March 8, 2023--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs ecosystem, reports the ETFs industry in Canada celebrates the 33rd anniversary of the listing of the first ETF on March 9th. During February the ETFs industry in Canada gathered net inflows of US$3.50 billion, bringing year-to-date net inflows to US$3.56 billion.
During the month, Canadian ETF assets decreased by 3.2%, from US$269 billion at the end of January to US$261 billion, according to ETFGI's February 2023 Canadian ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
ETFs industry in Canada celebrates the 33rd anniversary of the listing of the first ETF on March 9th.
Net inflows of $3.50 Bn in February 2023.
Net inflows of $3.56 Bn during 2023 are the second highest on record, after YTD net inflows of $4.39 Bn in 2022.
8th month of net inflows.
Assets of $261 Bn invested in ETFs listed in Canada at the end of February 2023.
Assets have increased 4.1 % YTD in 2023, going from $250 Bn at the end of 2022, to $261 Bn.
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Source: ETFGI
CBO-Monthly Budget Review: February 2023
March 8, 2023--Summary
The federal budget deficit was $724 billion in the first five months of fiscal year 2023, the Congressional Budget Office estimates-$248 billion more than the shortfall recorded during the same period last year.
Outlays were 8 percent higher and revenues were 4 percent lower from October through February than during the same period in fiscal year 2022.
Outlays in fiscal year 2023 were reduced by the shifting of certain payments-totaling $63 billion-from October 1, 2022 (the first day of fiscal year 2023), into fiscal year 2022 because October 1 fell on a weekend. If not for those shifts, the deficit would have been $787 billion, $311 billion greater than the shortfall during the same period in fiscal year 2022.
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Source: CBO (Congressional Budget Office)
Expiry of Vanguard ETF patent could spark run of copycats
March 6, 2023--There is already one filing to use ETF-as-a-share-class structure when exclusive rights expire in May
When Vanguard's patented exchange traded fund structure expires in May it could open the floodgates for other asset managers to copy it, if the first filing to do so is approved.
The world's second-largest asset manager currently has the exclusive right to use the "ETF-as-a-share-class" structure it patented in 2001. The unique design allows Vanguard to operate a mutual fund and a sister ETF as essentially the same vehicle, generating superior tax efficiency and economies of scale.
But the fate of the filing may go some way to determining whether other rival fund groups will be permitted to copy it.
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Source: ft.com
Growth stock vs. value stock? It’s all in the eye of the beholder
March 6, 2023--Value versus growth? Sometimes, it's hard to tell the difference. And sometimes, it may depend on what index you are using.
Is Microsoft a growth or value stock? Most investors would say it's a growth stock, because it has the traditional characteristics of a growth stock: earnings are growing.
But Microsoft is now being classified as partly a growth stock by Standard & Poors, and partly a value stock.
What about Meta? It too was considered a classic growth stock. Not anymore. S&P now says it is 100% a value stock.
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Source: cnbc.com
State Street to merge $1.8bn ETF into larger fund
March 3, 2023--Asset manager will also close three smaller ETFs that track Bloomberg sustainable accounting SASB indices
State Street Global Advisors plans to merge away a $1.8bn small-cap equity ETF into a larger vehicle, and shutter three tiny ETFs, filings show.
The SPDR 600 Small Cap ETF (SLY) will be absorbed by the $5.2bn SPDR Portfolio S&P 600 Small Cap ETF (SPSM), effective June 9.
Both funds hold many of the same investment strategies and track the S&P Small Cap 600 Index, regulatory disclosures show.
"The merger of SLY and SPSM aligns the product suite by having one ETF track the S&P SmallCap 600 Index," the company said.
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Source: ft.com
First Trust Launches First Trust Bloomberg Emerging Market Democracies ETF
March 3, 2023--An ETF that focuses on companies in emerging market countries where political rights and civil liberties are highly regarded
First Trust Advisors L.P. ("First Trust"), a leading exchange-traded fund
("ETF") provider and asset manager, announced today that it has launched a new
ETF, the First Trust Bloomberg Emerging Market Democracies ETF (NYSE Arca:
EMDM) (the "fund").
The fund seeks investment results that correspond
generally to the price and yield (before the fund’s fees and expenses) of an
equity index called the Bloomberg Emerging Market Democracies Index (the
"index").
The majority of global economic growth is expected to occur outside of the U.S. in the next few years, particularly in emerging markets, according to data from the International Monetary Fund ("IMF"). Traditional emerging market benchmarks may have significant weight in countries whose governmental policies and living conditions may not reflect democratic views toward individual and collective freedoms.
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Source: First Trust Advisors L.P
Inverse Cramer Tracker and Long Cramer Tracker ETFs Launch on CBOE (SJIM & LJIM)
March 2, 2023--Funds Offer Inverse Exposure (SJIM) and long exposure (LJIM) to the public recommendations of media personality Jim Cramer
The Inverse Cramer Tracker ETF (CBOE:SJIM) and The Long Cramer Tracker ETF (CBOE:LJIM) will start trading on the CBOE today.
These distinctive exposures allow investors to profit a decline or a rise in the public recommendations of Jim Cramer (on CNBC or on Twitter).
SJIM and LJIM offer investors of all sizes and types convenient "one-ticker" access to take sides on Jim Cramer's recommendations that may otherwise be difficult to execute on their own. SJIM is an actively managed exchange traded fund that attempts to achieve the inverse of Jim Cramer's recommendations by going short anything he recommends buying and going long anything he doesn't like. LJIM is an actively managed exchange traded fund that goes long anything that Jim Cramer recommends buying
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Source: Tuttle Capital Management
