ETF Radar Magazine (Issue April 2011) European Version

Page 1

etfRadar etf

Issue No. 8 ISSN 2150-9166 European Edition

SM

April 2011

Magazine Index Investor

Stoxx Europe 600 Sector Map Tactical Portfolio Update ETF of the Month THE HOTSPOTS AT A GLANCE

Rankings The Global ETF Landscape At A Glance Spotlight Middle East

Feature

People Chris Hofmann UniCredit

7 Must See

Emerging Market ETFs www.etf-radar.com


Fast Lane

Contents Issue April 2011 Global Summary

3

Industry Highlights Commodities Round-Up Top20 Global Index Provider Upcoming Events Number Cruncher Broker Update

Chris Hofmann, UniCredit

Index Investor

Rankings

5

Stoxx Europe 600 Sector Map Tactical Portfolio Update ETF of the Month

Feature

7

10

Spotlight Middle East

People

11

13

Assets under Management Change in ADV Change in AuM Best-Performer Worst-Performer

The all-new ETF Radar Magazine has enjoyed a lot of upgrades and improvements. Now, there will be a North American Edition and an European Edition. Nevertheless we strive to remain a truly global publication!

7 Must See Emerging Market ETFs

Index Companies and People Credit Suisse (pg. 3) Deutsche Bank (pg. 3) ETF Securities (pg. 3) Global X (pg. 3) Guggenheim (pg. 8) HSBC (pg. 3) IndexIQ (pg. 3) Invesco PowerShares (pg. 3, 9) iShares (pg. 8) SSgA (pg. 6) Teucrium Trading (pg. 11) TWC (pg. 8) Wisdom Tree (pg. 3, 8)

Dear Reader,

Al Said, Fadi (pg. 10) Fulton, Ben (pg 4.) Gilbertie, Sal (pg. 11) Hofmann, Chris (pg. 11) Kremenstein, Martin (pg. 3) Lavine, Bruce (pg 4.) Madden, Mark (pg 8.) Thomas, Farley (pg. 3)

Get In Touch NORTH AMERICA americas@etf-radar.com Naples (FL) +1 239 384 6090 EUROPE, MIDDLE EAST and ASIA-PACIFIC europe.asiapacific@etf-radar.com London +44 203 519 1179

We implemented a lot of new features. Here just two of them: Within the topic “Index Investor” you will find detailed information for index investments. Also we refined our well-known Tactical Portfolio Update. “Quick Summary” – From now on, you will find a summary of the content directly at the top of each article. Hence you are able to scan the key message instantly. In each issue the feature story will provide you a well researched article about hot investment trends, new products or give insights about an investment strategy. It also presents selected ETFs by which an investor could participate accordingly. Enjoy reading and let us know your thoughts. The New Global ETF Radar Team

ETF RADAR IS A PRIVATE AND INDEPENDENT INFORMATION PROVIDER. NO STATEMENT IN THIS ISSUE IS TO BE CONSTRUED AS A RECOMMENDATION TO BUY OR SELL SECURITIES OR TO PROVIDE INVESTMENT ADVICE. PLEASE SEE OUR DISCLAIMER PAGE FOR FURTHER INFORMATION. © 2009-2011 ETF Radar Global Investor Services. All rights reserved.

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ETF Radar Magazine | Issue April 2011

2


Global Summary

► NET FLOWS

In the US, investors invested USD 5.6 billion in ETFs in February 2011. Nearly the half amount of Net new assets – compared to the US figures – were invested in Europe into listed ETFs/ETPs in February 2011: USD 2.1 billion. YTD, assets in Asia-Pacific (ex Japan) have increased by 1.4% from USD 53.3 billion to USD 54.0 billion.

ted leec Fo

► OVERALL MARKET According to the latest figures from BlackRock’s ETF database, as end of February 2011, the global ETF industry had 2,557 ETFs with 5,802 listings and assets of USD1,367.4 Bn, from 140 providers on 48 exchanges around the world. This compares to 2,091 ETFs with 3,998 listings and assets of USD 1,001.9 Bn from 115 providers on 40 exchanges, in February one year ago.

S

Industry Highlights

u rf

ts en Ev

nt ve e ll

i ls ta de

p

the isit v se lea

w on w tion c e nt s eve

LAS VEGAS The Money Show 9-12 May 2011 Caesars Palace

NEW YORK CITY Capital Link Forum 27 April 2011 Metropolitan Club

As most people know, 21 years ago, on March 9 1990, the first ETF in the world was listed on Toronto Stock Exchange. January, 29 2011 marked the 18th anniversary of ETFs in the US. The next anniversary will be on April 11, 2011 – on this day ETFs in Europe will celebrate its 11th birthday. Credit Suisse celebrated in mid March the 10th birthday of its ETF division. The continent with the youngest ETF industry is Australia. August 27, 2011 will mark the 10th anniversary of ETFs in “down under”. Happy Birthday!

3 ETF Radar Magazine | Issue April 2011

com

TORONTO Canada Cup of Invest. Mgnt. 07–08 June 2011 InterContinental

► ETF BIRTHDAY PARTIES

Commodities Round-Up

radar. w.etf-

NEW YORK CITY ETF & Indexing USA 16-18 May 2011 TBC

Broker Update


Global Summary SINGAPORE Indexing&ETFAsia 1 June 2011 Amara Hotel

Top20 Global Index Provider MSCI 24.8% S&P 23.5% Barclays Capital 8.4% Russell 6.1% FTSE 4.1% STOXX 3.9% Dow Jones 3.8% Markit 3.4% NASDAQ OMX 2.6% Deutsche Boerse 2.6% Topix 1.2% NYSE Euronext 1.2% Nikkei 1.1% Hang Seng 1.1% EuroMTS 0.7% SIX Swiss Exchange 0.6% WisdomTree 0.6% PC-Bond 0.6% Grupo Bolsa 0.6% Other 8.0%

FRANKFURT ETF & Indexing Deutschland 20-22 June 2011 Radisson Blu Hotel

MADRID ETF & Indexing Espana 15-16 Jun 2011 Melia Ave. America Hotel

Number Cruncher

-14

%

Intraday loss of the Nikkei 225 Index on March 15, 2011. This was the biggest intraday slide since the stock market crash of October 1987.

Hot Product Debuts

308

bn

Amount (in USD) of total damage, the Japanese government estimated, making the inferno the world's costliest natural disaster.

Sources: Event organizers, Reuters, BusinessWire, BlackRock, ETF Radar Global Research

► FIRST EVER SENIOR LOAN ETF

► FIRST ASIA LOCAL DEBT ETF

► NEW GOVMNT. FUTURE ETNS

HSBC announced the expansion of its product range in Europe with the launch of two ETFs tracking Latin American equity markets. Both, the HSBC MSCI EM Latin America ETF and HSBC MSCI Mexico Capped ETF got listed on the LSE. Farley Thomas, Head of ETFs at HSBC, wants to target “the USD 55 billion of assets under management invested in Latin American markets”. Cross-listings on European exchanges are planned.

Invesco PowerShares launched the first ETF that provides investors access to a portfolio of senior secured bank or floating rate loans. The fund is expected to issue monthly dividends. “ According to Invesco’s Ben Fulton “are senior loans more stable than traditional high yield fixedincome investments”. The ETF is linked to the S&P/LSTA U.S. Leveraged Loan 100 Index and listed on NYSE Arca. Compared to HY fund peers its pricing is very attractive.

WisdomTree launched the industry’s first Asia Local Debt ETF. The fund is designed to provide exposure to Asian debt denominated in local currencies, excluding Japan. “We believe the capital surpluses and yield potential of the Asian economies make for an attractive fixed income offering” said Bruce Lavine, WisdomTree President & COO. Also, investors may benefit from the appreciation of the Asian currencies vs. USD.

Deutsche Bank has partnered with PowerShares to float six ETNs linked to foreign sovereign bond futures. The products will provide access to leveraged (3x) or unleveraged exposure to the German, Italian and Japanese government futures. “It’s a convenient way to trade sovereign debt” said Deutsche Bank`s Martin Kremenstein. Govt. futures declined sharply since Aug 2010 – postponed interest-rate increases could lead to higher future prices.

Ticker/ISIN: IE00B4TS3815, IE00B3QMYK80 TER: 0.60%/0.60% CCY: GBP and USD

Ticker/ISIN: BKLN TER: 0.93% CCY: USD

Ticker/ISIN: ALD TER: 0.55% CCY: USD

Ticker/ISIN: BUNL, BUND,ITLY, ITLT, JGBL, JGBT TER: 0.95% CCY: USD

► LATINO

EXPANSION

4 ETF Radar Margazine | Issue April 2011


Index Investor Stoxx Europe 600 Sector Map

Banks with weak performance, Construction&Materials & lead. by Sebastian Stahn contrarian pick with the ComStage ETF STOXX Europe 600 Banks (LU0378435399) would be the best choice.

In March the STOXX 600 Index dropped -3.07% due to the ongoing crisis around the world. Especially the disaster in Japan and the fights and revolts in North Africa brought the index to its knees.

Best performing sector with a performance of +0.75% in March 2011 was the STOXX 600 Construction and Materials Index. Here investors speculated on an increasing demand as Japan rebuilds. If you believe in an ongoing trend, the ComStage ETF STOXX Europe 600 Construction & Materials (LU0378435639) would be your best pick. 

Having a look at the sector performances, the Banking Sector was the worst performing with a loss of -7.34% in March 2011. One reason was the results of the bank stress tests, which discovered that Irish banks need another €24bn. If investors believe in a recovery of this sector, the

The Action Plan

CONTRARIAN PICK

BEST-TREND PICK

ComStage STOXX 600 Banks ETF ISIN/Ticker: LU0378435399/SX7R TER: 0.25% 1 Year Return: -8.78% Last Price/High/Low 52-Weeks: €38.35 / 34.13 / 43.29 Replication: Swap

ComStage STOXX Europe 600 Construction & Materials ETF ISIN/TIcker: LU0378435639/SXOR TER: 0.25% 1 Year Return: +7.10% Last Price/High/Low 52-Weeks: €48.58 / 37.40 / 48.89 Replication: Swap

RISK-REWARD-ANALYSIS

RISK-REWARD-ANALYSIS

based on an investment horizon of one month

HIGH SX7R

Media –3.76% Automobiles & Parts –2.88%

Real Estate –0.59% Mon th

ly Pe rform ance .

A s of

5 ETF Radar Magazine | Issue April 2011

Marc h3

Retail –5.07%

Banks –7.34%

Travel & Leisure –3.74%

Technology –2.25%

Telecommunications –1.30%

SXOR

HIGH

LOW

WORST PERFORMING SECTORS

Financial Services –1.66%

based on an investment horizon of one month

Health Care –4.57%

Insurance –4.68%

Basic Resources –2.97%

Oil&Gas –2.23%

Food & Beverage –0.86%

LOW

Personal & Household Goods –2.91%

Utilities –2.10%

Industrial Goods & Services –0.70%

Chemicals –0.34%

Construction & Materials 1, 20 11.

+0.75% BEST PERFORMING SECTORS


Index Investor Tactical Portfolio Update

Energy is the Place to Be by David Cohne QUICK FACTS ► Higher energy prices will lead to

gains in the energy sector. ► Clean energy stocks soaring

because of the crisis in Japan . The ETF Radar Tactical portfolio is a model portfolio that invests in five ETFs based on Cohne Investment Group´s tactical ETF rankings system. The portfolio trades at the end of each month. The holdings for April include PowerShares Global Clean Energy (IE00B23D9133) , iShares DJ STOXX 600 Oil & Gas (DE0006344765), Amundi ETF Commodities S&P GSCI (FR0010821728), iShares S&P 600 (DE000A0RFEB1) and iShares

MSCI Emerging Markets (DE000A0HGZT7). It's not surprising that Energy funds are ranked one and two. The oil & gas fund has placed high in the rankings over the last few months. This has been driven by high energy costs. The first ranked holding, clean energy, also benefited from rising energy costs. Small Cap is another area that has risen on recent trends. Finally emerging markets is the international asset class du jour.

Corporation, Enel Green Power S.p.A., Amyris, Inc., GCL-Poly Energy Holdings Limited, Acciona S.A., Verbund AG, International Rectifier, Johnson Controls, Inc., Centrotherm photovoltaics AG and SunPower Corporation.

ETF of the Month PowerShares Global Clean Energy

Based on the rankings PowerShares Global Clean Energy (IE00B23D9133) is the ETF of the month. It tracks the WilderHill New Energy Global Innovation Index. It has an expense ratio of 0.75%. Top holdings include Universal Display

52-Week Range Market Cap Dividend (Yield) Volume Ave. Daily Volume ETF Issuer

€5,468 - €4,500 €7.92B n/a n/a €40,456 Invesco PowerShares

ETF Radar Tactical Portfolio ISIN

ETF NAME

TER

AUM

WEIGHT

IE00B23D9133

PowerShares Global Clean Energy

0.75%

€7.92 mn.

20%

DE0006344765

iShares DJ STOXX 600 Oil & Gas

0.45%

€ 141.39 mn.

20%

FR0010821728

Amundi ETF Commodities S&P GSCI

0.30%

€8.17 mn.

20%

DE000A0RFEB1

iShares S&P Small Cap 600

0.40%

€41.73 mn.

20%

DE000A0HGZT7

iShares MSCI Emerging Markets

0.74%

€4.86 bn.

20%

Source: Cohne Investment Group, exclusively for ETF Radar / April 1, 2011 Ranking

6 ETF Radar MarketBulletin | Issue April 2011


Feature

Rare Pearls: 7 Must See Emerging Market ETFs For some emerging markets, growth is slowing, inflation rates are rising and political and social instability is turning into revolutions. However, there are some countries that are showing solid growth, low inflation and the potential to capitalize on rising oil and commodity prices. We researched the seven most interesting EmMa ETFs. by David Cohne QUICK FACTS â–ş If investors generally step away from emerging markets because of some bad eggs, one might miss out on profitable opportunities. â–ş Russia and Brazil are expected to profit mostly. Emerging markets continue to be an interesting international play. While the regional index is slightly down for the year, its historical average annual returns are above both the North America and EAFE regions. If we look at the region which consists of countries in Latin America, Asia, Africa, the Middle East and Eastern Europe from a fundamental point of view, these are the areas of growth which will be the largest of the next decade. The 7 ETF Radar Magazine | Issue April 2011

seven funds we will take a look at are based on a technical and fundamental ranking system. They should be considered short to medium term plays. Many of these ETFs bring on added risk so always make sure to have an exit strategy. Indonesia The first ETF I want to cover is the iShares MSCI Indonesia ETF (EIDO). The fund tracks the performance of the MSCI Indonesia Investable Market Index and sports an expense ratio of 0.61% with $202 million in assets under management. Top sectors include financial, energy and consumer discretionary. Indonesia has benefited from government reforms over the past decade which decreased the budget deficit and in turn reduced inflation. The fund is also poised to benefit from


Feature

+20%

iShs. Thailand

+10%

0%

SPDR Russia -10%

Dow Jones

USA: USD 47,132

+30%

Russia: USD 10,521

iShs. Indonesia

+40%

EU: USD 32,283

2011

Performance (USD)

Singapore: USD 42,653

Feb

Dec

Jun

2010

Oct

Selected GDPs per Capita

Aug

HIGH POTENTIAL

Performance Comparison Of Selected Emerging Market ETFs vs. DJIA Apr

VOLATILE, BUT RISING

Indonesia: USD 2,963

Thailand We now head back to Asia for our third ETF pick, the iShares MSCI Thailand ETF (THD). The fund tracks the performance of the MSCI Thailand Investable Market Index. This fund has an expense ratio of 0.62% and $586 million assets under management and is made up of 87 holdings. Top sectors include Energy, Financials and Consumer Staples which make up 75% of the portfolio. While Thailand has experienced a volatile political environment and a recent increase in inflation, the country is growing and its companies are undervalued. Thailand is also a big trading partner in agriculture to countries in Asia-Pacific like China, South Korea, Singapore and Australia.

Brazilian Currency Our fifth pick is slightly different. It is the WisdomTree Dreyfus Brazilian Real Fund (BZF). It tracks the performance of the both money market rates in Brazil and changes in value of the Brazilian Real compared to the U.S. dollar. Its holdings include mainly treasury bills and repurchase agreements, two thirds of which are rated AAA. The fund benefits from carry trade in which investors borrow with low interests rates in developed countries and buy Brazil's currency since the country has a higher interest rate. In terms of the Brazilian economy, Mark Madden, the portfolio manager of the TCW Emerging Markets Equities Fund adds “Brazil is another country where we see solid growth in the years to come and some great mid-cap domestic companies; however, we are cautious near-term until we see the central bank push ahead with higher rates to mitigate the inflation threat.� >

Thailand: USD 4,620

Mexico The second high ranked ETF was the iShares MSCI Mexico ETF (EWW). The fund tracks the performance of the MSCI Mexico Investable Market Index with an expense ratio of 0.53%. This ETF is one of the larger emerging market ETFs with $1.5 billion in assets under management. Top sectors include Telecommunications, Consumer Staples and Materials. Putting the drug war aside, Mexico is likely to continue to grow over 4% per year with low inflation. The country's oil exports will allow it to benefit from continued rising oil prices.

China Technology Our next ETF pick is the Guggenheim China Technology ETF (CQQQ). The fund tracks the performance of the AlphaShares China Technology Index. This fund has an expense ratio of 0.70% and only $46 million in assets under management. The sector includes internet companies, hardware, software and telecommunications firms. Top holdings include Baidu.com, Sina Corp and Tencent Holdings Ltd. China as a whole has done quite well since the recent market downturn and it should continue to grow. China is not only the most populous country in the world but has the largest number of cell phone users and internet users. There is still expected growth in both sectors.

Brazil: USD 10,471

Indonesia's trading relations with China. Indonesia produces oil for its own purposes but is also rich in exporting such as coal and palm oil.

-20% Source: IS-Teledata as of April 1, 2011

Source: IMF as of December, 31 2010

8 ETF Radar MarketBulletin | Issue April 2011


Feature Emerging Markets Sovereign Debt If you were looking for an emerging market income play then look no further than the PowerShares Emerging Markets Sovereign Debt ETF (PCY). The fund tracks the performance of the DB Emerging Market USD Liquid Balanced Index. The index is made up of emerging market government bonds (US denominated). This fund has an expense ratio of 0.50% and $915 million in assets under management. Some of the countries that make up the fund include Ukraine, Lithuania, and Panama. Many of the ETF's holdings have a maturity of 1-10 and 20 and over. I see this as a short term play to capture continued upward movement in these securities. Russia Our last ETF is the SPDR S&P Russia ETF (RBL). It tracks the performance of the S&P Russia Capped BMI Index. Top sectors include Energy, Materials and Financials. Russia is still an interesting opportunity as the country has a large growth rate (5%) and remains a high exporter of oil and gas. Mark Madden adds, “We are bullish on the prospects for Russian stocks for several reasons. To begin with, the risk premium on Russia is still high and stocks are very reasonably valued. Secondly, we believe energy prices will continue to rise over the next several years as G7 economies slowly recover and supply risks persist. The Russian budget will be in surplus and Russian wages will continue to rise, which will result in a domestic consumption recovery for some really interesting entrepreneurial companiesâ€?.ď Ž

9

We are bullish on the prospects for Russian stocks. Mark Madden, CFA Fund Manager TWC Emerging Markets Equities Fund


Spotlight Middle East

War in Libya, Volatile Oil Prices, But Local Markets Bounce Back UNSTOPPABLE Feb

Dez

Okt

Aug

Jun

Performance Of Brent Crude Apr

T

he revolution started in Tunisia two months ago, has quickly erupted the most countries in Northern Africa and the Middle East. Egypt, Yemen and oil-rich Bahrain are just some examples. Currently there are a lot of uncertainties which might unfold a over couple of weeks. Investors are confused on what they should do now. We talked to Dubai-based Fadi Al Said, a wellknown Middle East insider, who is working since more than ten years in Arabia.

2010

2011

USD 110 100

Brent Crude

90 80 70 Source: IS-Teledata as of April 1, 2011

SLEEPLESS IN TRIPOLIS Selected Northern Africa/Middle East ETFs

Oil prices cannot be lower than USD 70 for a long period. Fadi Al Said, CFA Head Of Investments ING Inv. Mgt. Dubai

Fadi, how is the current investor sentiment in the Middle East and how seriously are the local markets affected by latest turmoils in the region? Local investors sentiment has improved significantly especially after major markets in the region recovered most of the losses incurred during the events witnessed in the region, also it improved further after Egyptian market resumed trading and wasn’t as bad as expected but on the contrary the index is currently higher than the level it was suspended at.

Name

Ticker

CCY

Risk

MarketVectors Egypt Index ETF

EGPT

USD

high high

Powershares MENA ETF

PMNA

USD

SPDR S&P Emerging Middle East & Africa

GAF

USD medium medium

iShares MSCI GCC Countries ex-Saudi Arabia

A0RM47

USD

Lyxor ETF FTSE Coast Kuwait 40

LKUU

USD medium Multi medium

db x-trackers S&P Select Frontier

DBX1A9

RBS MSCI Frontier Markets ETN

AA2C8W EUR

medium

RBS MSCI Gulf CC ex SA Top 50 Net ETN

AA2C80

medium

EUR

Source: ETF Radar as of April 1, 2011

Which markets/companies should one prefer and why? Our approach is mainly bottom up so its not focused on a specific sector or country, haven’t said would favor noncyclical sectors relating to basic needs and that isn’t impacted by shocks in economic cycles. As a more aggressive play would focus on companies that might benefit from increased oil process like the petrochemical sector that is a direct beneficiary from increased selling prices especially that their feedstock (costs) are fixed.

What is your market outlook for the oil and gas prices? I’m not good at predicting commodity prices (I don’t think anyone is) but recent events in Japan and the setback the nuclear industry has taken as a result may result on relying on natural gas which might drive NG prices higher, we also believe that realistically oil prices cannot be sustainably lower than 70 US for a long period as the structure of the demand/ supply dynamics has changed.

10


People Coffeebreak with

Chris Hofmann Global Head of ETF/ ETC Sales & Advisory, UniCredit Bank The Global Head of the Italo-German banking giant’s market making unit talks about the current market sentiment, wide and narrow spreads and the most common misunderstandings when investing with ETFs/ETCs. by Silvan Schelling

VITA ► Born: 1982 ► Lives in: Munich ► Career: Chris is Global Head of ETF Advisory & Sales at UniCredit and responsible for the expansion of the ETF/ETC market making activities worldwide. Before she joined the Italo-German banking giant in 2009, Chris worked for Lyxor ETF in a sales/marketing role for nearly three years. She holds a Bachelor in International Business Administration from the American Business School in Paris and a diploma in Marketing. Chris is an exciting speaker who combines content with an entertaining approach to complex issues supported by her deep knowledge. ►My First ETF: Bought in May 2007 ►My Favorite Investments: MSCI World, DAX

11 ETF Radar Magazine | Issue April 2011

How strong did UniCredit, as European leader in ETFMarket Making, feel the effects of the market turbulences – caused by Japan and Libya? The turmoil has had a serious impact – mainly on the trading behavior of the investors. Of course, our trading desk which continuously quoted bid and ask prices for the relevant products during this time, tried to keep the risk as low as possible and redeemed our positions as soon as possible at the specific ETF issuer. Which impact had the turmoil on spreads? As expected, the spreads have widened, especially on the exchange. Clearly, here one has realized a “risk-pricing”. Nevertheless I have to mention within this context, that in such turbulent times an ETF/ETC market maker remains in the market, provide liquidity and offer trading possibilities up to the (previously agreed) maximum spread.

Previously agreed with whom? Let me explain the relationship: If an ETF trading desk wants to start market making for a specific ETF, the institution has to sign a so-called “Market Making Agreement” with the ETF/ETC issuer and the relevant exchange. The trading desk commits itself officially to quote in 90% (minimum; varies depending on the exchange) of the trading hours a certain size on the bidand ask-side within a maximum, predefined spread range. These components: trading hours, liquidity and maximum spread could vary from issuer to issuer and could also be different between the exchange venues.

expected, “theAsspreads have widened, especially on the exchange.


People

Is there a spread limit for Market Makers? It's important to know for investors that the market maker has strictly to follow its commitment and cannot increase the spread into a skyrocketing percentage rate. For Emerging Market ETFs the maximum spread a market maker could charge is 5% but not more.

investors “Many believe that ETFs are a universal cure.

What are the most common misunder-standings of ETF/ETC investors? Many investors believe that ETFs are a universal cure. But even this investment product has its perils and risks, which each investor should be aware of. Probably the most common misunderstanding in the ETF market is, that each ETFs are common, respectively easy to understand.

Which AuM level could the ETF market reach by end of June 2011? That's a difficult question which I can't answer because we guys are on the trading side. Hence we see mainly inflows and outflows. We do not actively observe the Assets under Management level of the products. My personal estimation is € 285 billion. Provided that the ETF market grows between 25% - 30% annually, we could reach € 330 billion in the year 2012. In 2011 we started with an AuM of circa € 270 billion. If one expects the same growth rate, we would reach circa € 300 billion by end of June this year. However I'm skeptical if we will see so much new inflows because of the recent market events and the few remaining time till June. Chris, please describe the Market-Making-Ser vices of UniCredit in one sentence? The UniCredit ETF Advisory and Tr a d i n g Te a m i s t h e o n l y independent ETF/ETC team, which is in the business since 11 years and continuously provide quotes for all ETF/ETC issuers on nine different European exchanges. Thank you! 

Hh Harriman House

There’s Never Been A Better Time To Learn More About The ETF Industry. Harriman House is one of the UK's leading independent publishers of finance, trading and investment books.

ETF Radar MarketBulletin | Issue April 2011

Across the Atlantic:

People

Interview with Sal Gilbertie, Teucrium Trading in the Magazine’s North American Edition. www.etf-radar.com 12

On Sale Now: www.harriman-house.com/etfradar Get 30% off the regular price!


Rankings

In association with

Top 25 ETF providers around the world ranked by Assets under Management As at end February 2011

WORLDWIDE Feb 11

Provider

# ETFs

AUM (US$ Bn)

% total

# planned

# ETFs

% ETFs

AUM (US$ Bn)

% AUM

% market share

iShares

476

$593.6

43.4%

15

3

0.6%

$15.0

2.6%

-0.7%

State Street Global Advisors

118

$202.2

14.8%

30

5

4.4%

$11.6

6.1%

0.3%

Vanguard

66

$157.7

11.5%

1

1

1.5%

$9.2

6.2%

0.2%

Lyxor Asset Management

158

$54.4

4.0%

1

2

1.3%

$1.1

2.0%

-0.1%

db x-trackers

180

$49.8

3.6%

11

1

0.6%

$0.8

1.5%

-0.1%

PowerShares

130

$47.3

3.5%

49

0

0.0%

$4.5

10.4%

0.2%

ProShares

101

$22.7

1.7%

98

1

1.0%

$1.1

5.1%

0.0%

Van Eck Associates Corp

29

$21.1

1.5%

35

0

0.0%

$1.1

5.5%

0.0%

Nomura Asset Management

32

$16.4

1.2%

0

0

0.0%

-$0.1

-0.4%

-0.1%

Credit Suisse Asset Management

58

$16.3

1.2%

0

4

7.4%

$0.7

4.4%

0.0%

Zurich Cantonal Bank

7

$12.0

0.9%

0

0

0.0%

$0.2

2.0%

0.0%

Bank of New York

1

$11.8

0.9%

0

0

0.0%

-$0.4

-3.2%

-0.1%

WisdomTree Investments

45

$10.2

0.7%

72

1

2.3%

$0.3

3.3%

0.0%

Commerzbank

90

$9.0

0.7%

0

0

0.0%

$0.4

5.2%

0.0%

Amundi ETF

94

$8.4

0.6%

0

2

2.2%

$1.3

17.8%

0.1%

UBS Global Asset Management

34

$8.0

0.6%

0

5

17.2%

$1.4

21.3%

0.1%

HSBC/Hang Seng

21

$7.8

0.6%

7

4

23.5%

$0.4

5.7%

0.0%

Nikko Asset Management

17

$7.2

0.5%

3

0

0.0%

$0.7

10.0%

0.0%

ETFlab Investment

39

$6.7

0.5%

5

4

11.4%

-$0.1

-1.7%

0.0%

First Trust Advisors

44

$6.7

0.5%

15

1

2.3%

$1.2

22.3%

0.1%

Direxion Shares

39

$6.5

0.5%

174

0

0.0%

-$0.1

-1.8%

0.0%

Source Markets

57

$6.4

0.5%

15

1

1.8%

$1.4

28.5%

0.1%

Daiwa Asset Management

23

$6.3

0.5%

1

0

0.0%

-$0.6

-8.8%

-0.1%

EasyETF

49

$6.0

0.4%

1

0

0.0%

$0.5

8.8%

0.0%

Claymore Investments

29

$5.9

0.4%

6

0

0.0%

$0.4

7.7%

0.0%

Source: BlackRock Global ETF Research and Implementation Strategy Team

13

YTD change


Rankings Top 10/Top 5 ETFs by Assets under Management As at end February 2011

UNITED STATES ETF SPDR S&P 500 Vanguard MSCI Emerging Markets ETF iShares MSCI EAFE Index Fund iShares MSCI Emerging Markets Index Fund iShares S&P 500 Index Fund PowerShares QQQ Trust iShares Barclays TIPS Bond Fund Vanguard Total Stock Market ETF iShares Russell 2000 Index Fund iShares Russell 1000 Growth Index Fund

Bloomberg ticker SPY US VWO US EFA US EEM US IVV US QQQQ US TIP US VTI US IWM US IWF US

AUM (US$ Mn) $94,779.0 $42,825.5 $39,125.4 $36,420.6 $28,142.7 $25,435.2 $19,497.5 $19,066.0 $16,300.4 $13,677.6

ADV ('000 shares) 137,432 23,570 13,561 71,400 2,490 52,531 787 1,975 45,499 2,313

ADV (US$ Mn) $18,178.1 $1,091.8 $825.4 $3,271.5 $330.7 $3,027.7 $83.8 $134.6 $3,695.1 $139.7

Bloomberg ticker IUSA LN MSE FP ZGLD SW IEEM LN DAXEX GY ISF LN SX5EEX GY XMEM GY IBCS GY EUN2 GY

AUM (US$ Mn) $9,388.3 $8,463.1 $7,689.0 $6,488.8 $6,296.6 $6,049.2 $5,591.2 $5,072.0 $4,636.6 $4,388.9

ADV ('000 shares) 7,905 2,623 9 1,484 1,180 8,663 1,741 1,332 175 1,803

ADV (US$ Mn) $186.9 $109.7 $20.7 $65.0 $109.5 $84.2 $73.9 $55.4 $28.9 $75.1

Bloomberg ticker STX40 SJ STXDIV SJ STXFIN SJ STAN40 SJ NRD SJ

AUM (US$ Mn) $950.0 $145.7 $113.5 $95.2 $90.7

ADV ('000 shares) 1,076 2,243 120 716 4

ADV (US$ Mn) $4.4 $0.5 $0.1 $3.0 $0.0

Bloomberg ticker 2823 HK 2800 HK 2833 HK 510050 CH 159901 CH 2828 HK 2821 HK STW AU 0050 TT 069500 KS

AUM (US$ Mn) $7,655.5 $6,613.0 $3,838.8 $3,039.8 $2,991.0 $2,713.2 $2,392.5 $2,392.1 $1,779.1 $1,700.1

ADV ('000 shares) 109,764 16,953 35 314,261 715,215 1,674 6 546 19,151 1,648

ADV (US$ Mn) $179.6 $50.5 $1.0 $95.5 $90.5 $26.4 $0.7 $25.4 $38.0 $38.5

Bloomberg ticker 1306 JP 1321 JP 1330 JP 1308 JP 1320 JP

AUM (US$ Mn) $7,885.9 $6,881.9 $3,608.2 $3,196.4 $3,036.7

ADV ('000 shares) 2,639 387 303 377 104

ADV (US$ Mn) $30.9 $50.1 $39.6 $4.3 $13.4

EUROPE ETF iShares S&P 500 Lyxor ETF Euro STOXX 50 ZKB Gold ETF (CHF) iShares MSCI Emerging Markets iShares DAX (DE) iShares FTSE 100 iShares EURO STOXX 50 (DE) db x-trackers MSCI Emerging Market TRN Index ETF iShares Markit iBoxx Euro Corporate Bond iShares EURO STOXX 50

MIDDLE-EAST/AFRICA ETF SATRIX40 Satrix Dividend Plus SATRIX Financials STANLIB Top 40 Fund NewRand ETF

ASIA-PACIFIC ETF iShares FTSE A50 China Index ETF Tracker Fund of Hong Kong (TraHK) Hang Seng Index ETF China AMC SSE 50 E Fund SZSE 100 Hang Seng H-Share Index ETF ABF Pan Asia Bond Index Fund SPDR S&P/ASX 200 Fund Polaris Taiwan Top 50 Tracker Samsung Kodex200 ETF

JAPAN ETF TOPIX ETF NIKKEI 225 ETF Listed Index Fund 225 Listed Index Fund TOPIX Daiwa ETF NIKKEI 225 Source: BlackRock Global ETF Research and Implementation Strategy Team

ETF Radar Magazine | Issue April 2011

14 10


Rankings Top 10 ETFs by Change in Average Daily Volume As at end February 2011

WORLDWIDE ETF SPDR S&P 500 iShares Russell 2000 Index Fund iShares MSCI Emerging Markets Index Fund PowerShares QQQ Trust Energy Select Sector SPDR Fund Vanguard MSCI Emerging Markets ETF iShares MSCI Brazil Index Fund iShares Barclays 20+ Year Treasury Bond Fund iShares MSCI EAFE Index Fund Financial Select Sector SPDR Fund

Bloomberg ticker SPY US IWM US EEM US QQQQ US XLE US VWO US EWZ US TLT US EFA US XLF US

ADV (US$ Mn) $18,178.1 $3,695.1 $3,271.5 $3,027.7 $1,126.6 $1,091.8 $999.6 $892.5 $825.4 $807.7

ADV ('000 shares) 137,432 45,499 71,400 52,531 14,911 23,570 13,734 9,893 13,561 48,083

AUM (US$ Mn) Feb-11 $36,420.6 $94,779.0 $25,435.2 $10,866.7 $28,142.7 $39,125.4 $42,825.5 $9,388.3 $10,673.0 $6,809.5

AUM (US$ Mn) Dec-10 $47,551.5 $89,915.3 $22,069.9 $8,396.4 $25,799.2 $36,923.1 $44,569.8 $7,905.8 $9,332.0 $8,131.1

AUM (US$ Mn) $94,779.0 $16,300.4 $36,420.6 $25,435.2 $10,866.7 $42,825.5 $12,690.6 $2,676.1 $39,125.4 $7,920.9

Top 10 ETFs by Change in Assets under Management As at end February 2011

WORLDWIDE

ETF iShares MSCI Emerging Markets Index Fund SPDR S&P 500 PowerShares QQQ Trust Energy Select Sector SPDR Fund iShares S&P 500 Index Fund iShares MSCI EAFE Index Fund Vanguard MSCI Emerging Markets ETF iShares S&P 500 iShares S&P MidCap 400 Index Fund iShares FTSE China 25 Index Fund

Bloomberg ticker EEM US SPY US QQQQ US XLE US IVV US EFA US VWO US IUSA LN IJH US FXI US

Source: BlackRock Global ETF Research and Implementation Strategy Team

15 ETF Radar MarketBulletin | Issue April 2011

Change (US$ Mn) -$11,130.9 $4,863.7 $3,365.3 $2,470.3 $2,343.5 $2,202.3 -$1,744.3 $1,482.5 $1,341.0 -$1,321.6


Rankings Top 30 Best Performing ETPs As at end of March 2011

WORLDWIDE ETF/ETP

Listing Region

1 Mth

12 Mth

Inception

Net assets (USD)

ProShares Ultra Silver

North America

44.19%

264.39%

142.24%

-

Horizons BetaPro COMEX Silver Bull

North America

43.29%

256.63%

150.16%

52,230,529

ETFS Leveraged Silver ETC

North America

43.01%

264.76%

14.67%

41,856,559

ETFS Leveraged Silver (DE) ETC

Europe

41.95%

260.40%

38.64%

31,479,481

ETFS Leveraged Cotton ETC

North America

22.73%

395.35%

20.11%

6,404,627

ETFS Leveraged Cotton (DE) ETC

Europe

21.83%

389.43%

57.41%

4,637,014

Direxion Daily Energy Bull 3X Shares

North America

21.60%

141.21%

35.36%

-

UBS E-TRACS CMCI Silver TR ETN

North America

21.06%

105.41%

25.64%

-

Global X Silver Miners ETF

North America

20.87%

-

83.58%

-

JB Physical Silver Fund A (EUR)

Europe

20.73%

103.79%

68.61%

249,161,124

ZKB Silver ETF (USD)

Europe

20.72%

104.62%

72.71%

832,245,652

JB Physical Silver Fund AX (EUR)

Europe

20.72%

103.88%

68.67%

249,161,124

ETFS Physical Silver Shares

Europe

20.67%

107.13%

73.74%

-

iShares Silver Trust

North America

20.66%

106.70%

22.54%

-

ETFS Physical Silver ETC

North America

20.64%

106.73%

24.75%

864,169,322

JB Physical Silver Fund A (USD)

Europe

20.62%

105.41%

70.97%

344,140,445

JB Physical Silver Fund AX (USD)

Europe

20.61%

105.41%

70.79%

344,140,445

JB Physical Silver Fund AX (CHF)

Europe

20.51%

101.88%

67.55%

319,861,337

JB Physical Silver Fund A (CHF)

Europe

20.48%

101.82%

67.50%

319,861,337

ETFS Leveraged Cocoa ETC

North America

20.46%

36.36%

-2.88%

5,813,018

SPGS Silver ETN

North America

20.45%

-

86.18%

-

ETFS Leveraged Coffee ETC

Europe

20.34%

242.41%

9.80%

2,503,605

JB Physical Silver Fund AX (GBP)

Europe

20.29%

103.49%

69.06%

211,584,428

JB Physical Silver Fund A (GBP)

Europe

20.22%

103.49%

69.06%

211,584,428

Horizons BetaPro NYMEX Natural Gas Bear

North America

20.16%

56.35%

64.39%

83,334,142

Horizons BetaPro COMEX Silver ETF

North America

20.03%

98.89%

63.35%

11,408,804

Source S&P GSCI Silver TR T-ETC

Europe

19.95%

101.36%

70.75%

3,496,126

UBS Bloomberg CMCI Silver CHF Hdgd ETC

Europe

19.92%

-

-

-

PowerShares DB Silver

North America

19.91%

101.74%

25.48%

-

UBS Bloomberg CMCI Silver EUR Hdgd ETC

Europe

19.88%

-

-

-

Source: GlobalFundData/Morningstar as of April 1, 2011

16 ETF Radar Magazine | Issue April 2011


Rankings Top 30 Worst Performing ETPs As at end of March 2011

WORLDWIDE ETF/ETP

Listing Region

ProShares UltraShort Silver

North America

-33.03%

-84.02%

-78.63%

-

Horizons BetaPro COMEX Silver Bear

North America

-31.78%

-81.57%

-74.38%

16,712,870

Barclays Short D Lvgd Inv S&P 500 TR ETN

North America

-28.57%

-69.15%

-60.24%

-

Direxion Daily Energy Bear 3X Shares

North America

-19.75%

-74.72%

-74.92%

-

ETFS Leveraged Natural Gas (DE) ETC

Europe

-19.49%

-68.74%

-84.90%

287,694,256

Horizons BetaPro NYMEX Natural Gas Bull

North America

-19.24%

-68.50%

-79.82%

605,330,179

ETFS Leveraged Natural Gas ETC

North America

-18.90%

-68.37%

-81.30%

397,362,268

ETFS Short Silver (DE) ETC

Europe

-17.76%

-56.42%

-31.94%

3,834,463

ETFS Leveraged Sugar (DE) ETC

Europe

-17.67%

35.00%

47.08%

4,384,039

db x-trackers FTSE Vietnam

Europe

-17.22%

-21.97%

-26.24%

350,647,963

ETFS Short Silver ETC

Europe

-17.15%

-55.90%

-31.26%

5,098,477

ETFS Leveraged Sugar ETC

Europe

-17.06%

36.63%

5.44%

6,055,219

Direxion Daily Small Cap Bear 3X Shares

North America

-16.41%

-71.91%

-76.02%

-

ProShares UltraPro Short Russell2000

North America

-16.32%

-71.63%

-74.42%

-

Kodex Construction ETF

Asia-Pacific

-15.26%

10.84%

8.17%

4,294,967,295

Direxion Daily Nat Gas Rltd Bear 2X Shrs

North America

-15.06% -

-53.46%

-

Direxion Daily Semicondct Bear 3X Shares

North America

-14.58% -

-72.50%

-

Kodex Shipbuilding ETF

Asia-Pacific

-14.37%

69.36%

-5.35%

4,294,967,295

ProShares UltraShort Oil & Gas

North America

-13.99%

-57.52%

-42.33%

-

ETFS Leveraged Wheat (DE) ETC

Europe

-13.93%

43.47%

-35.41%

15,866,293

ProShares UltraPro Short MidCap400

North America

-13.81%

-67.35%

-70.52%

-

Direxion Daily Real Estate Bear 3X Shrs

North America

-13.69%

-77.05%

-84.67%

-

EasyETF BNP Par Global Rnwble Energy USD

Europe

-13.66%

-25.85%

-18.15%

14,910,655

ETFS Leveraged Wheat ETC

North America

-13.29%

45.20%

-53.98%

21,914,467

Horizons BetaPro S&P/TSX Glbl Gold Bear

North America

-12.78%

-46.66%

-63.91%

55,423,371

Horizons BetaPro S&P/TSX Cap Energy Bear

North America

-12.64%

-48.02%

-39.03%

8,047,247

Kodex Leverage ETF

Europe

-12.63%

46.24%

39.90%

4,294,967,295

Market Vectors Vietnam ETF

North America

-12.61%

-5.16%

-3.64%

-

KB KStar Leverage ETF

Asia-Pacific

-12.60% -

24.81%

4,294,967,295

Mirae Asset Tiger 200 Leverage ETF

Asia-Pacific

-12.43% -

23.18%

4,294,967,295

Source: BlackRock Global ETF Research and Implementation Strategy Team

17

1 Mth

12 Mth

Inception

Net assets (USD)


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