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October ETF Data: Surge In Inflows, Back Above $1 Trillion

Michael Johnston — Thu, 03 Nov 2011 11:00:19 +0000

ETF assets rode a surge in stock markets higher in October, as total AUM for U.S.-listed exchange-traded products climbed higher by more than 11% last month. According to the latest figures from the National Stock Exchange, ETP assets stood at $1.08 trillion at the end of October, with monthly inflows of nearly $24 billion for the month. That surge in inflows, combined with a stellar stretch for global equity markets, pushed assets back above the $1 trillion mark. After a prolonged period of poor performance, industry assets had dipped to about $973 billion at the end of the third quarter. Domestic equity funds accounted for a significant portion of total inflows, though creations in international stock funds and fixed income products also contributed to the banner month. With ten months in the books, ETF inflows total about $102 billion for 2011. That haul represents an increase of about 15% compared [...]

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Six Direxion ETFs To Undergo Reverse Splits

Michael Johnston — Wed, 02 Feb 2011 18:00:22 +0000

Direxion, one of the leading issuers of leveraged ETFs, announced reverse splits for six of its 3x bear funds. Five of the leveraged products will undergo 1-for-5 reverse splits for shareholders of record after the close of the markets on Wednesday, Feb. 23, 2011: Daily Financial Bear 3x Shares (FAZ) Daily Large Cap Bear 3x Shares (BGZ) Daily Mid Cap Bear 3x Shares (MWN) Daily Developed Markets Bear 3x Shares (DPK) Daily Semiconductor Bear 3x Shares (SOXS) Additionally, the Daily Small Cap Bear 3x Shares (TZA) will undergo a reverse 1-for-3 split. Each of the six ETFs will be assigned a new CUSIP following the reverse splits. Disclosure: No positions at time of writing. Click here to read the original article on ETFdb.com.Related Posts:March ETF Roundup: Launches, Filings, and ClosuresHow To Fix the Leveraged ETF MessResponding To Calls For ETF RegulationDirexion Brings 3x Leveraged ETFs To EuropeProShares Plans 300% Leveraged [...]

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Ten Intriguing ETF Storylines

Michael Johnston — Fri, 06 Aug 2010 11:00:20 +0000

As we head towards the finish line of 2010, the ETF industry finds itself in an interesting position. Regulatory scrutiny has intensified, leading to significant uncertainty over the future of certain product development initiatives. Active ETFs continue to generate hype, but little in the way of assets. Investors have fully embraced bond ETFs, which now account for much of the growth in the industry. A series of “price wars” has kicked off, with some unexpected issuers joining in the fray (more on this below). The list could go on and on. The competitive landscape continues to change from week to week, with more issuers than ever before battling for pieces of a pie that is still growing, but at a much slower rate than it once was. A quick look at the recent ETF industry statistics from the National Stock Exchange reveals the same old trends; cash continues to come [...]

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Goldman Sachs Fraud Crushes Financial ETF (XLF)

Michael Johnston — Fri, 16 Apr 2010 15:53:35 +0000

Investors had expected this week to be all about earnings reports. And for the first four days it was, with several bellwether firms reporting first quarter results that ranged from disappointing (Google) to impressive (Intel). But the earnings season successes and failures were overshadowed on Friday morning when the Securities & Exchange Commission charged Goldman Sachs and one of its vice presidents with defrauding investors by misstating and omitting critical facts about products tied to subprime mortgages. The SEC stated that Goldman created and marketed a synthetic collateralized debt obligation that was tied to the performance of sub prime mortgage-backed securities in 2007, just as the U.S. housing market was beginning to show early signs of collapsing. At the heart of the complaint is the role that hedge fund Paulson & Co. played in selecting the portfolio while maintaining a short position against the CDO. “Undisclosed in the marketing materials [...]

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Financial ETFs Under Fire As Derivatives Showdown Heats Up

Michael Johnston — Thu, 15 Apr 2010 14:20:35 +0000

Since the global equity markets bottomed out in March 2009, the financial sector has been one of the top-performing corners of the U.S. economy. After being hammered as fears of a financial meltdown spread through Wall Street, big banks have recovered to strengthen their balance sheets, begin reporting profits once again, and even pay back big chunks of government bailout funds. After the passage of a comprehensive health care reform earlier this year, the financial sector appeared to be one of the indirect beneficiaries. With the Obama administration seemingly spending all of its political capital to muscle health care legislation through, many investors expected a long-simmering financial overhaul to lose some of its bite. But so far, that hasn’t been the case. Democrats are pushing ahead with a plan to drastically change the way Wall Street banks trade derivatives, a move that some worry may eat into the bottom line [...]

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March ETF Roundup: Launches, Filings, and Closures

Seth Dowling — Thu, 01 Apr 2010 16:02:54 +0000

After a few speed bumps early in 2010, ETFs are back on track and traveling full steam ahead. In the first three months of 2010, nearly 60 new ETFs have been launched, which is already equivalent to nearly half funds to hit the market over the course of 2009. The recent SEC decision to halt approval on products using derivatives may slow this pace a bit, but April promises to be another very active month for new ETF launches. Below, we highlight some of the most interesting new funds hitting the market. New ETFs Highlights from the ETF industry in March include: Claymore, best known for themed ETFs and targeted sector funds, mixed things up when by releasing three new ETFs based on broad market indexes. The new funds include the Wilshire 5000 Total Market ETF (WFVK), Wilshire 4500 Completion Index ETF (WXSP), and Wilshire U.S. REIT ETF (WREI). Following the launch of 3x funds earlier in the year, Direxion hit [...]

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Direxion Brings 3x Leveraged ETFs To Europe

Michael Johnston — Wed, 31 Mar 2010 14:44:28 +0000

Direxion, the pioneer of 3x and -3x daily leveraged ETFs in the U.S., is going international. Beginning on March 31, six Direxion Shares Daily ETFs will be listed on the Amsterdam market of NYSE Euronext, significantly expanding the base of investors with access to these products. The Direxion ETFs available on this market include daily 3x and -3x ETFs targeting the MSCI Emerging Markets Index, Russell 1000 Index, and Russell 1000 Financial Services Index: Daily Emerging Markets Bull 3x Shares (EDC) Daily Large Cap Bull 3x Shares (BGU) Daily Financial Bull 3x Shares (FAB) Daily Emerging Markets Bear 3x Shares (EDZ) Daily Large Cap Bear 3x Shares (BGZ) Daily Financial Bear 3x Shares (FAZ) Each of these products is already listed in the U.S., and all but one of them trade under the same ticker symbol stateside (the 3x bull financial fund is listed as “FAS” in the U.S.). It’s [...]

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ProShares Planning Short, Leveraged Regional Bank ETFs

Michael Johnston — Tue, 02 Mar 2010 23:19:26 +0000

ProShares, a leading provider of inverse and leveraged ETFs, has filed for approval on seven addition ETFs, including four “ultra” international ETFs and three products focusing on a popular regional bank index. The international ETFs complement four existing 200% inverse products, and include: Ultra MSCI Brazil: Seeks daily returns equal to 200% of the daily returns on the MSCI Brazil Index. Ultra Pacific ex-Japan: Seeks daily returns equal to 200% of the daily returns on the MSCI Pacific ex-Japan Index. Ultra MSCI Europe: Seeks daily returns equal to 200% of the daily returns on the MSCI Europe Index. Ultra MSCI Mexico Investable Market: Seeks daily returns equal to 200% of the daily returns on the MSCI Mexico Investable Market Index. In June 2009, ProShares launched UltraShort products that seek to deliver 200% of the inverse of daily returns of the same four indexes. iShares currently offers ETFs designed to replicate [...]

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Seven Surprising ETF Trading Stats

Michael Johnston — Mon, 25 Jan 2010 16:00:58 +0000

One of the best sources of information on the state of the ETF industry is the monthly data download from the National Stock Exchange. While the most interesting numbers are generally the fund flows into exchange-traded products and the issuer “totem pole,” the release has some pretty thorough statistics on notional and share trading volumes. A closer look at the December version reveals some interesting insights about the ETF industry and sheds some light on a few interesting patterns behind ETF use among investors: 7. Trading Volumes Decreased In 2009 Excluding leveraged ETFs, the number of ETF shares traded declined from about 329 billion in 2008 to 312 billion in 2009, a puzzling statistic considering that the industry saw total cash inflows of almost $120 billion and more than 100 new product launches. Perhaps these numbers are more indicative of the extreme volatility and unique market environment of 2008 rather [...]

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Defending The “Most Dangerous ETFs”

Michael Johnston — Fri, 25 Sep 2009 08:00:27 +0000

Don Dion, who covers ETFs for TheStreet.com and runs Dion Money Management, recently wrote a three part series highlighting the “10 Most Dangerous ETFs”. Dion notes that as the ETF industry continues to expand beyond “plain vanilla” funds, investors are introduced to products that can face significant liquidity issues, be subject to increased regulatory scrutiny, and carry “unprecedented risks” associated with their complex and non-traditional strategies. While I agree with most of Dion’s analysis (and certainly share his view that there are a number of complex ETFs that should be limited to the most sophisticated investors), I feel it’s necessary to defend a few of the ETFs that made the list: Claymore/BNY Mellon Frontier Markets (FRN) FRN invests in frontier markets, which generally refer to the least developed economies in the world. MSCI Barra, a provider of domestic and international equity indexes, analyzes 75 markets around the world on four [...]

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