etfRadar etf
Issue No. 9 ISSN 2150-9166 European Edition
SM
May 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 No swap, no cry? New regulator concerns People Farley Thomas HSBC
Feature
Chasing Yield in ETFs www.etf-radar.com
Fast Lane
Contents Issue May 2011 Global Summary
3
Industry Highlights Global Round-Up Top20 Global Index Provider Hot Product Debuts Upcoming Events Number Cruncher
Index Investor
5
Stoxx Europe 600 Sector Map Tactical Portfolio Update ETF of the Month
Feature
7
9
Spotlight No swap, no cry? New regulator concerns
People
11
Farley Thomas, HSBC
Rankings
13
Assets under Management Change in ADV Change in AuM Best-Performer Worst-Performer
Chasing Yield in ETFs
Index Companies and People Absa (pg. 3) Barclays (pg. 4) Birla Sun Life (pg. 3) Blau, Johnatan (pg. 8) Burke, Kevin (pg. 4) Credit Suisse (pg. 8) Deutsche Bank (pg. 4) ETF Securities (pg. 3) First Trust Advisors (pg. 3) Friends Provident (pg. 3) FSB (pg. 9) Guggenheim (pg. 8) IMF (pg. 9)
iShares (pg. 8,10) Laidlaw, Robyn (pg. 3) Lyxor (pg. 10) Montanari, Marco (pg. 4) Peritus AM (pg. 8) PowerShares (pg. 8) SDPR (pg. 8) Société Générale (pg. 10) Source (pg. 4) TD Ameritrade (pg. 3) Van Eck (pg 3) Vanguard (pg. 3) Waqas Samad (pg. 4)
Get In Touch
Dear Reader, According to the latest research figures, the ETF industry is definitely growing much faster than the mutual fund industry especially in the US. The success of ETFs is based on their clear, simple and low-cost DNA. But there are some signs that this heritage is in danger. Today there is much confusion among investors, as there are many different innovations, especially all the leveraged and inverse products as well as the synthetic replicated ETFs. Maybe too many. The latest comments from the Financial Stability Board and other regulatory bodies show it clear: The industry has to accelerate the initiatives towards more transparency and try to limit the complexity of the products. At some stage investors would step away from some ETFs and ETPs because they do not really understand what they are buying and eventually face more risks than buying traditional (known) products such as stocks or bonds. The Industry's mission towards clarity and transparency has to be started now! Enjoy reading and let us know your thoughts.
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 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.
Silvan Schelling Head of Relationship Management PS: This month we celebrate our 2nd birthday! Since exactly two years the ETF Radar Magazine informs and educates meanwhile 12'100 readers worldwide.
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ETF Radar Magazine | Issue May 2011
2
Global Summary
ted leec Fo
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
radar. w.etf-
com
TORONTO Canada Cup of Invest. Mgnt. 07–08 June 2011 InterContinental
LAS VEGAS The Money Show 9-12 May 2011 Caesars Palace
NEW YORK CITY ETF & Indexing USA 16-18 May 2011 Princeton Club
Global Round-Up ► US/UK: ETF SECURITIES PLANS 1 BN. IPO
The commodities specialist is planning a potential one billion share listing. The U.K. ETF provider has retained Citigroup and Bank of America Merrill Lynch to discuss its strategic options, including an initial public offering. ► US: LARGEST COMMODITY INDEX CELEBRATES FIVEYEAR ANNIVERSARY
DB Commodity Services LLC, a subsidiary of Deutsche Bank, and Invesco PowerShares, are commemorating the five-year anniversary of the PowerShares DB Commodity Index Tracking Fund, the first and largest broad-based commodity ETF listed in the United States. ► US: TD AMERITRADE OFFERS ETFS FOR 401(K)
TD Ameritrade recently launched a program enabling plan sponsors and
3 ETF Radar Magazine | Issue May 2011
independent RIAs to offer exchangetraded funds to 401(k) participants.
cash and gold indicates an ongoing desire for lower risk investments.
► SOUTH AFRICA: NEW ABSA
► INDIA: NEW GOLD ETF
ETFS
Birla Sun Life Mutual Fund, based in Mumbai, has started an open-ended gold ETF. The Birla Sun Life Gold ETF will be benchmarked to the domestic price of physical gold. The ETF has been listed
Absa Capital is launching a multi-asset ETF. The fund, Growth and Protect NewFunds Multi-Asset Passive Portfolio Solutions, will be listed on the Johannesburg Stock Exchange within the next weeks.
on the Bombay SE and India’s National SE. ► AUSTRALIA: VANGUARD
► ASIA: INVESTORS POSITIVE,
EMIRATIS STAY CAUTIOUS Friends Provident recently published its “Investor Attitudes Index”, covering Hong Kong, Singapore and the UAE. Investors in both Asian markets are more positive than in the UAE. Gold and equities/shares remain the favoured asset classes in HK. Singapore follows a similar pattern. UAE remains least positive of the three markets, but once again shares similar views on bonds. A preference for
TO LAUNCH NEW ETFS Vanguard will boost its presence in the Aussie ETF market with the introduction of three new products. The new funds will include Australian small and large companies ETFs and a high yield Australian shares ETF and are expected to commence trading around the end of May 2011, according to Robyn Laidlaw, Head of Product Development.
Global Summary Top10 Global Index Provider
SINGAPORE Indexing&ETFAsia 1 June 2011 Amara Hotel
MSCI 25.3% ↑
World Islamic Conference 8-9 June 2011 Pan Pacific Hotel
Russell 6.2% ↑ Dow Jones 3.8% → STOXX 3.6% ↓ Deutsche Boerse 2.8% ↑
FRANKFURT ETF & Indexing Deutschland 20-22 June 2011 Radisson Blu Hotel MADRID ETF & Indexing Espana 15-16 Jun 2011 Melia Ave. America Hotel
Other 16.7%
Number Cruncher
Hot Product Debuts
Sources: Event organizers, Reuters, BusinessWire, BlackRock, ETF Radar Global Research
► NEW ASIA FOCUSED ETFS
► NEW FLOATING RATE BOND ETF
► THREE NEW PHYSICAL ETCS
► NEW PURE BETA COMMODITY ETNS
Deutsche Bank has launched two new ETFs which are linked to the MSCI AC Asia exJapan High Dividend Yield and MSCI Philippines Investable Market indices, respectively. It’s the first ever ETF linked to Asian high dividend stocks and the first ETF listed in Asia to give investors exposure to the Philippines. “We still observe a strong interest for high yielding investments in Asia” said Singapore-based Marco Montanari, Regional Head of db X-trackers.
ETF-Provider Van Eck introduced the new Market Vectors Investment Grade Floating Rate ETF. FLTR seeks to track, before fees and expenses, the Market Vectors Investment Grade Floating Rate Index, which consists of a portfolio of U.S. dollardenominated investment grade floating rate notes. The newly launched product could exhibit attractive returns for income-oriented investors also seeking participation on rising interest rates.
London-based Source has launched three new physical precious metal ETCs: The Source Physical Silver P-ETC, the Source Physical Platinum P-ETC and the Source Physical Palladium P-ETC will offer exposure to the respective precious metals. Each ETC is secured by physical metal held in JPMorgan's London vaults. These will complement Source's existing Physical Gold P-ETC, which has raised over US$ 1 billion.
Barclays recently launched a new series of iPath ETNs. Unlike many commodity indices, which roll their exposure to the corresponding futures contract on a monthly basis, iPath´s Beta Indices may roll into one of a number of futures contracts with varying expiration dates. The ETNs are linked to commodities like Crude, Copper, Coffee. “The new indices are unique” said Waqas Samad, Head of Index, portfolio and risk solutions.
Ticker/ISIN: Lu0592215825, LU0592215403 TER: 0.65% p.a. CCY: USD
Ticker/ISIN: FLTR TER: 0.49% p.a. CCY: USD
Ticker/ISIN: IE00B43VDT70 IE00B40QP990, IE00B4LJS984 TER: 0.39% p.a. CCY: USD
Ticker/ISIN: CUPM, OLEM, et.al. TER: 0.75% p.a. CCY: USD
4 ETF Radar Magazine | Issue May 2011
Index Investor Stoxx Europe 600 Sector Map
Telecoms consolidate, Chemicals lead by Sebastian Stahn In April the STOXX 600 Index rose 2.86% driven by a good earnings season till now. Having a look at the sector performances, the Telecommunications sector was the worst performing with a loss of -1.13% in April 2011. After a good performance in March the sector consolidated in April. If investors believe in a recovery, the contrarian pick with the ComStage ETF STOXX Europe 600 Telecommunications (LU0378437171) would be the best
The Action Plan
choice. Best performing sector with a performance of +9.57% in April 2011 was the STOXX 600 Chemicals Index. Increasing deal activity and good quarter earnings led European chemical stocks reaching new highs this year. If you believe in an ongoing trend, the Lyxor ETF STOXX Europe 600 Chemicals (FR0010345470) would be your best pick.
CONTRARIAN PICK
BEST-TREND PICK
ComStage STOXX 600 Telecommunications ETF ISIN/Ticker: LU0378437171/SXKP TER / AUM: 0.25% / 35mn. 1 Year Return: +18.31% Last Price/High/Low 52-Weeks: €50.66 / 52.82 / 40.08 Replication: Synthetic
Lyxor STOXX 600 Chemicals ETF ISIN/TIcker: FR0010345470/SX4P TER / AUM: 0.30% / 41mn. 1 Year Return: +31.29% Last Price/High/Low 52-Weeks: €60.75 / 60.75 / 42.60 Replication: Synthetic
RISK-REWARD-ANALYSIS
RISK-REWARD-ANALYSIS
based on an investment horizon of one month
SXKP
based on an investment horizon of one month
WORST PERFORMING SECTORS
Basic Ressources –0.37%
Telecommunications –1.13% Banks +1.93%
Travel & Leisure +2.72%
Construction & Personal & Materials +3.18% Household Goods +3.44% Health Care +5.53% Mon th
ly Pe rform ance .
LOW
Media +0.56%
Oil & Gas +0.23%
Technology +2.23%
Real Estate +2.93%
SX4P
HIGH
LOW
Financial Services +2.48%
Insurance +3.10%
Utilities
+2.53%
Food & Beverage +3.16%
Industrial Goods & Services +3.63%
Retail +5.14%
Automobiles & Parts +8.78%
Chemicals A s of
5 ETF Radar Magazine | Issue May 2011
April
30, 2 011.
+9.57%
BEST PERFORMING SECTORS
Index Investor Tactical Portfolio Update
“Double G”: Germany and Gold show the most potential for gains by David Cohne QUICK FACTS ► T he latest macroeconomic
figures could lead to a ralley in Germany’s DAX Index. ► Nevertheless, Investors should stay cautious because of the debt crisis in the Eurozone .
The ETF Radar Tactical portfolio is a model portfolio that invests in five ETFs based on a tactical ETF rankings system. The portfolio trades at the end of each month. The holdings for April include iShares DAX (DE0005933931), SPDR MSCI Europe Consumer Discretionary (FR0000001752), ETFX DAXglobal Gold Mining Fund (DE000A0Q8NC8), SPDR MSCI Europe Materials
(FR0000001794), iShares DJ STOXX 600 Oil & Gas (DE0006344765). European stocks have risen in recent weeks due to better than expected earnings reports. While I still have a cautious outlook on the European economy, I believe investors can benefit from a short term hold in European stocks. Germany is at the top of the rankings most likely from strong exports, a three year low in unemployment and strong earnings from companies such as Merck KGaA. As per Gold, if interest rates remain cheap, we should expect continued increases in precious metals such as Gold and Silver. Based on the rankings, iShares DAX is the ETF of the month. It tracks the
German DAX Index. It has an expense ratio of 0.17% annually. Top holdings include industry giant Siemens AG, BASF SE, insurance company Allianz SE, Bayer AG, Daimler AG, E.ON AG, SAP AG, Deutsche Bank AG, Deutsche Telekom AG and Linde AG. ETF of the Month iShares DAX ETF (De0005933931) 52-Week Range Market Cap Dividends TER Last Volume ETF Issuer Replication
€51,91 - €69,89 €6.05 billion cumulated (2,06%) 0.17% p.a. € 2,978,560 iShares Physical
ETF Radar Tactical Portfolio ISIN
ETF NAME
TER
AUM
WEIGHT
DE0005933931
iShares DAX
0.17%
€6.05 bn.
20%
Fr0000001752
SPDR MSCI Europe Cons. Discret.
0.30%
€13.84 mn.
20%
DE000A0Q8NC8
ETFX DAXglobal Gold Mining Fund
0.65%
€67.00 mn.
20%
Fr0000001794
SPDR MSCI Europe Materials
0.30%
€29.27 mn.
20%
DE0006344765
iShares DJ STOXX 600 Oil & Gas
0.52%
€203.97 mn.
20%
Source: Cohne Investment Group, exclusively for ETF Radar / May 2, 2011 Ranking
6 ETF Radar Magazine | Issue May 2011
Feature
Chasing Yield in ETFs In times with ultra-low interest rates, many equity investors are turning toward dividend paying stocks or other higher-yielding instruments. High yield corporate ETFs continue to grow in assets, but do they still belong in your portfolio? by David Cohne QUICK FACTS â–ş In current times when an investor is lucky to get a 1.50% return annually, higher yielding instruments are very popular. â–ş Biggest issues to be aware of are credit tightening and the spread. There are a few new Exchange Traded Funds on the scene hoping to take advantage of the growing asset bases of the original high yield corporate funds. For instance, Guggenheim Funds released three target date based ETFs in June of last year. The funds follow an index that is designed to track the performance of a portfolio of high yield corporate bonds held to a maturity year. In addition, Advisor Shares released an actively managed ETF by Peritus Asset Management which came out in November last year. The asset class seems to be hot right now, but how long will it last? It's hard to find bargains One of the reasons people are still looking for high yield 7 ETF Radar Magazine | Issue May 2011
is that stock bargains are becoming harder and harder to find. As the stock market has recovered, there are less equities selling at value or affordable prices. Another reason is a bearish outlook on treasuries. Yields are still very unattractive. There are also very low yields in the investment grade corporate bond space. Investors, who are willing to take on more risk, are looking for high yield bonds. The spreads are still attractive. Another point to consider is that when stocks do well, so do high yield bonds. There is fairly strong to correlation between the two. As the stock market continues to rise, investors are likely to stick with these types of investments. Why not? They provide fairly low volatility and good long term returns. They can also benefit from rising inflation, especially until short term rates rise and the spread gets smaller. They can protect your portfolio when interest rates rise and bond prices start to fall. Other bonds don't offer you that same protection. High-Yield-Investments still in an uptrend In terms of analyzing this space from a technical viewpoint, just take a look at how a high yield ETF has recently >
Feature performed compared to its 200 Day and 50 Moving Averages. For the purposes of this analysis let's use the iShares iBoxx High Yield Corp ETF (HYG) as an example. As of April 26th, HYG is above both its 50 Day and more importantly its 200 Day moving average. This tells us that it is still in an uptrend. If you consider these facts, you might want to jump right in, but beware; this isn't going to last forever. People seem to forget what happened to high yield bonds in 2008. As the market tanked, so did high yield corporate bonds. We take a tactical approach to just about all our investments, so we wouldn't recommend a buy and hold strategy with these funds. It's best to keep abreast of economic and credit conditions and prices of bonds.
“
We don't expect a big degradation in the loan market.
”
Jonathan Blau Head of Global Leveraged Finance Strategy Credit Suisse
OUR SHORTLIST Selected ETFs At A Glance SPDR Barclays Capital High Yield Bond ETF (NYSE: JNK) Yield: 8.50% | AuM: 7.44 billion iShares iBoxx $ High Yield Corporate Bond Fund (NYSE: HYG) Yield: 7.80% | AuM: 8.48 billion PowerShares Fundamental High Yield Corporate Bond ETF (NYSE: PHB) Yield: 7.00% | AuM: 592.93 million PowerShares Senior Loan ETF (NYSE: BKLN) Yield: 4.90% | AuM: 118.10 million
THE HIGH YIELD TRIO Performance Comparison Of Selected High Yield ETFs vs. S&P500 Performance (USD)
2009
Don't forget about the risks The biggest issues to be aware of are credit tightening and the spread. As the central bank tightens, very risky high yield bonds aren't the best place to be. According to Jonathan Blau, Head of Global Leveraged Finance Strategy at Credit Suisse, “When the Central Bank tightens, and liquidity is withdrawn from the financial system, that's when riskier assets underperform. The riskier the bond, the worse it will likely perform.”
2011
2010
+60%
S&P500
+50%
+40%
This brings up another question. If not high yields, where should we allocate our fixed income investments? One possibility is senior loan securities. PowerShares has recently released an ETF that covers this market, the PowerShares Senior Loan ETF (BKLN). This fund tracks the S&P/LST US Leveraged Loan 100 Index, a portfolio that tracks the performance of leveraged loans. We put this question to Mr. Blau once again, “Initially, the effect will be muted. Many companies have fixed their balance sheets by pushing out maturity dates so we don't expect a big degradation in the loan market.” ETFs to Watch We've run high yield corporate ETFs through the ETF ranking model and there are three main high yield corporate ETFs to keep an eye on. This includes the PowerShares High Corp ETF (PHB), SPDR Barclays High Yield Bond ETF (JNK) and iShares iBoxx High Yield Corp (HYG). JNK and HYG have similar returns, while PHB is less volatile, especially when high yield bonds took a short dive in the first half of March. The reason for this is likely the fundamental management style of the ETF. It tracks the RAFI High Yield Bond Index. As for the PowerShares Senior Loan ETF (BKLN), we would keep it on your watch list for now.
+30%
JNK
+20%
PHB HYG
+10%
0% Source: NYSE as of May 2, 2011
8 ETF Radar Magazine | Issue May 2011
Spotlight
ETF No swap, no cry? Recently super-regulators like the G20's Financial Stability Board warned over ETF risks. The main critic came on securities lending and swap-based Exchange Traded Funds. What the industry should do now – and what should investors know. by Sebastian Stahn and Martin Raab, CAIA As the ETF market has developed rapidly, ETFs have begun to play an increasingly important role in today's capital markets. For example, several ETFs are amongst the most traded instruments on the London Stock Exchange on any given day. Same picture on the other side of the Atlantic Ocean. The SDPR ETF linked to the S&P500 is one of the world's most liquid investment products. Little wonder that recently ETFs have appeared on the radar screen of three well-known regulatory authorities: The G20's Financial Stability Board (FSB), the International Monetary Fund (IMF) and the Bank for International Settlements (BIS) attacked the ETF industry. The critics were mainly focused on inverse and leveraged products. The regulators are seeing 9 ETF Radar Magazine | Issue May 2011
new systematic risks caused by the global ETF business. The FSB criticized securities lending by providers of physical-replicated ETFs, which buy the constituents of the benchmark they wish to track.
“
Little wonder that recently ETFs have appeared on the radar screen of three well-known regulatory authorities.
”
The IMF said the disproportionately large size of some ETFs compared with the market capitalization of their underlying indices posed a risk of
disruptions in some markets from heavy ETF trading. Investors and ETF providers should improve their riskmanagement strategies and the providers should also enhance transparency, making public details on a product's riskiness. A bit worse: The Bank for International Settlements commented on the systemic risks posed by ETFs in their new working paper that drew uncomfortable parallels between ETFs and the structured products like CDOs and CLOs that blew up in the financial crisis. There are good reasons why using securities lending in ETFs Competition between ETF issuers is encouraging them to use derivatives like swaps and forwards to maximize the ETF´s profits. No investor wants
Spotlight
to pay large fees, especially not when you are an institutional player in the asset management business and compete with some aggressive peers. As expenses dip precipitously sometimes close to zero as seen on some index products in Europe , some firms are turning to practices such as securities lending for a larger part of revenue. Issuers like iShares or State Street Global Advisors split lending profits between the firm and shareholders. Those shareholder profits go towards counteracting an expense ratio. Rate wars also play a role in product development calculations, evaluating new markets on what fees clients will pay for access and whether there are enough clients for the fund to reach a sustainable scale. The main aspects There are two main aspects to the way in which ETF investors could benefit from securities lending. First, the ETF's asset manager can lend the constituent parts of an ETF and a portion (i.e. 60/40) of the generated revenue is returned to the fund. This activity, common in many unit trusts or mutual funds available to the public, accrues benefits to all fund shareholders as reflected in the fund's Net Asset Value (NAV). Hence some ETF issuers are able to compete with near-zero TERs on blue-chip indices like the EuroStoxx50. Secondly, large shareholders can lend their ETF units, which is something that investors in other pooled fund vehicles cannot do. Each individual holder decides whether or not to lend its units, and any lending revenue accrues directly to that investor. Swap-based ETFs under fire The FSB pays particular attention to the conflicts of interest within the European ETF industry, where unlike its peers in the US the same institution can be the ETF issuer, swap counterparty, market maker and sometimes index provider. “Since the swap counterparty is typically the
bank also acting as ETF provider, investors may be exposed if the bank defaults. Therefore, problems at those banks that are most active in swapbased ETFs may constitute a powerful source of contagion and systemic risk,” said the FSB. Basically these concerns are legitimated. For example ETFissuer Lyxor quotes prominently the potential counterparty risk vs. its mother company Société Générale on its own website: “Through Lyxor ETFs, investors are exposed to counterparty risks resulting from the use of an OTC Swap with Société Générale. In-line with UCITS guidelines, the exposure to the Swap Counterparty, Société Générale, cannot exceed 10% of the total fund assets.” Finally, having a swap exposure in Lyxor ETFs (just as an example) versus Société Générale should not be a surprise for investors and also not for a regulator. Nevertheless it's important that each ETF issuer proactively deals with these risks.
“
Lyxor quotes prominently the potential counterparty risk vs. its mother company Société Générale on its own website.
futures and forwards (OTC traded future contract). This instruments use additional collaterals to be protected in case of the bankruptcy of their counterparty. If an investor desires an ETF with exotic investment exposure there is no alternative to derivatives. Experts’ advice available for complex questions and mandates Finally, three years after the financial crisis and the Lehman disaster, most ETF issuers and investors are aware of potential risks and strictly monitor it. Nevertheless, investors should bear in mind that swap-based ETF structures reveal some significant differences, notably regarding collateral policy, swap reset frequency, swap fees and the taxation of dividend income from the underlying securities. Investor Intelligence firms and advisors like ETF Radar could help when it comes to specific questions on Exchange Traded Funds. No matter if it’s from an asset managers point of view or within a complex mandate.
”
No alternative when it comes to exotic strategies Especially in Europe, ETFs using swaps to track their underlying index today outnumber those using (traditional) physical replication by around 2:1. In the US, ETF provider use primarily futures in order to track the inverse or leveraged performance of a specific underlying. In most cases especially when it comes to exotic strategies there is no alternative to use such financial derivatives. Investors exposed i.e. to volatility risk can use various ETPs linked to the VIX Index in order to hedge their portfolio accordingly. Also most of the Exchange Traded Commodities or Exchange Traded Notes are purely based on commodity 10
ETF Radar Magazine | Issue May 2011
People Expert Talk with
Farley Thomas Global Head of Wealth Solutions & ETFs, HSBC The initator behind HSBC’s ETF activities about the pure physical approach, the firm’s strong Emerging Markets DNA, profitable niche strategies and the latest expansion plans for the months ahead.
by Silvan Schelling
VITA ► Born: 1970 ► Lives in: London ► Career: Farley is Global Head of Wealth Solutions & ETFs at HSBC. He is responsible for development of the relationship between the capital markets and retail banking divisions of HSBC, and leading the development of exchange traded funds (ETFs) as a Group-wide initiative. Before taking up this role in March 2010, Thomas spent 12 years at HSBC Global Asset Management, where he was most recently responsible for distribution of investment products through internal and external distribution networks worldwide. Prior to joining HSBC in 1997, Thomas had a variety of business development responsibilities at Framlington, a specialist asset management company now part of Axa Investment Managers. ► My first ETF: Bought in August 2009 ► My favorite investments: HSBC plc
11 ETF Radar Magazine | Issue May 2011
HSBC started in August 2009 with its ETF division. How is your résumé? We've moved from one Europelisted ETF on the blue chip UK index to having 23 listed in Europe now, with plans to add further to this through the rest of 2011. What differentiates our offering is that it is purely based on physical investment in the underlying, it is highly competitive in terms of quality and fees, and it exhibits a strong bias towards the emerging markets theme as you would expect from HSBC, a leading emerging markets bank. On which exchanges have you listed your ETFs currently? We have our ETFs listed on the four main exchanges in Europe, namely the LSE London Stock Exchange, NYSE Euronext, Deutsche Boerse and SIX Swiss Exchange, allowing us to tap into the major flows. What was one of the major success moments till today and what was the most frustrating situation? Launching our first ETF in 2009 was a great step on a journey that started in 2008. I recall being on holiday in France and placing the first trade in our FTSE 100
ETF from my laptop. This really brought home the hybrid features of ETFs that can be traded as easily as any stock but provides the investor protections of a UCITS. Another highlight was being the first to list an S&P 500 ETF when the index license exclusivity expired in 2010. So, no frustrating moments? Not too many frustrations, except perhaps the knowledge that we can do more, more quickly but have to make sure we control risks and maintain quality, which is more important than adding products for their own sake.
“
I recall being on holiday in France and placing the first trade in our FTSE 100 ETF from my laptop.
”
How are your thoughts about the increased competition between the ETF issuers? Will smaller players with less Assets under Management
People
survive in this let’s call it "tiny fee environment” like the broad ETF business is? This business favours scale firms so it will inevitably be harder for the specialist players unless they focus on exploiting a niche profitably. Competition is good for investors by increasing product quality, choice and cost. That said, since they are mainly standardised products, customers will tend to buy them from their mainstream product provider, so having a large customer base is a great plus for the ETF providers that are part of large financial institutions like HSBC. How is your current client base structure? More institutional i nve s to r s o r m o re p r iva te investors/IFAs? To date we have more business from wealth and asset managers but are starting to attract institutional flows on top of that.
”
To date we have more business from wealth and asset managers but are starting to attract institutional flows .
“
In which of your ETFs, have you seen the most inflows within the last weeks - and which ETF saw the most redemptions? The FTSE 100 and S&P 500 ETFs have seen most inflows and the MSCI Japan ETF has understandably had the most outlflows, but we see a resumption of interest now and are generally adding assets. We have not had to make a redemption in any of our funds since we launched in Europe. Are there any plans to list further ETFs the next time? Into which
asset classes do you want to expand in the future? We will add more equity ETFs this year, with a continued focus on the emerging markets theme, aiming to bring some new investment ideas to the market. We are of course looking at other asset classes but want to first complete our equity line up.
“
We will add more equity ETFs this year, with a continued focus on the emerging markets.
”
Where do you expect HSBC's ETF AuM in Europe (and globally) by end of 2011? At the moment we have just over $1b AuM in Europe and USD 7 billion in Asia (under our Hang Seng brand). By year end we expect to grow that to over USD 3 billion in Europe and USD 7.5 billion in Asia. Which ETFs should an investor consider currently - and why? Any ETF tracking an index the investor already has exposure to or wishes to gain exposure to. Why? Because they offer high levels of transparency, low cost and clear investment objectives. If the investor is convinced they need to deviate from the benchmark and is willing to pay a higher fee for active management, with the benefits and risks of that, then they have a wide choice of active funds to pick from.
Across the Atlantic:
Thank you! People
Interview with Tom Anderson, State Street Global Adv. in the Magazine’s North American Edition. www.etf-radar.com 12
ETF Radar Magazine | Issue May 2011
Rankings
In association with
Top 25 ETF providers around the world ranked by Assets under Management As at end March 2011
WORLDWIDE Q1-11 Provider
# ETFs
YTD change
AUM (US$ Bn)
% total
ADV (US$ Bn)
# planned # ETFs
% ETFs
AUM (US$ Bn)
% AUM
% market share
iShares
461
$609.3
43.5%
$19.4
21
-12
-2.5%
$30.7
5.3%
-0.6%
State Street Global Advisors
118
$200.4
14.3%
$32.8
33
5
4.4%
$9.7
5.1%
-0.2%
Vanguard
66
$164.7
11.8%
$1.8
1
1
1.5%
$16.2
10.9%
0.4%
Lyxor Asset Management
158
$54.5
3.9%
$1.2
1
2
1.3%
$1.2
2.3%
-0.2%
db x-trackers
183
$51.8
3.7%
$1.0
13
4
2.2%
$2.8
5.6%
0.0%
PowerShares
131
$47.0
3.4%
$4.1
48
1
0.8%
$4.2
9.8%
0.1%
ProShares
103
$23.4
1.7%
$3.8
98
3
3.0%
$1.8
8.4%
0.0%
Van Eck Associates Corp
30
$21.9
1.6%
$0.9
36
1
3.4%
$2.0
10.0%
0.0%
Credit Suisse Asset Management
58
$16.6
1.2%
$0.1
0
4
7.4%
$0.9
5.9%
0.0%
Nomura Asset Management
32
$15.2
1.1%
$0.2
0
0
0.0%
-$1.2
-7.3%
-0.2%
Zurich Cantonal Bank
7
$12.7
0.9%
$0.1
0
0
0.0%
$0.9
7.4%
0.0%
Bank of New York
1
$11.5
0.8%
$0.5
0
0
0.0%
-$0.7
-5.8%
-0.1%
46
$11.3
0.8%
$0.2
72
2
4.5%
$1.4
13.9%
0.1%
UBS Global Asset Management
38
$9.9
0.7%
$0.1
6
9
31.0%
$3.3
51.0%
0.2%
Commerzbank
90
$9.2
0.7%
$0.1
0
0
0.0%
$0.6
7.3%
0.0%
Amundi ETF
95
$9.1
0.7%
$0.1
0
3
3.3%
$2.0
27.4%
0.1%
HSBC/Hang Seng
26
$8.2
0.6%
$0.1
4
9
52.9%
$0.8
10.3%
0.0%
First Trust Advisors
44
$7.3
0.5%
$0.1
17
1
2.3%
$1.9
34.3%
0.1%
Direxion Shares
42
$7.0
0.5%
$2.9
174
3
7.7%
$0.4
6.1%
0.0%
Nikko Asset Management
20
$6.7
0.5%
$0.1
0
3
17.6%
$0.1
1.5%
0.0%
Source Markets
57
$6.6
0.5%
$0.4
15
1
1.8%
$1.6
32.7%
0.1%
ETFlab Investment
40
$6.6
0.5%
$0.1
0
5
14.3%
-$0.2
-3.2%
0.0%
EasyETF
49
$6.3
0.4%
$0.0
1
0
0.0%
$0.7
12.6%
0.0%
Claymore Investments
30
$6.1
0.4%
$0.0
5
1
3.4%
$0.6
11.8%
0.0%
Daiwa Asset Management
23
$5.5
0.4%
$0.0
1
0
0.0%
-$1.4
-20.0%
-0.1%
WisdomTree Investments
Source: BlackRock Global ETF Research and Implementation Strategy Team
13
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ETF Radar Magazine | Issue May 2011
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Rankings Top 10/Top 5 ETFs by Assets under Management As at end March 2011
UNITED STATES ETF SPDR S&P 500 Vanguard MSCI Emerging Markets ETF iShares MSCI EAFE Index Fund iShares MSCI Emerging Markets Index Fund iShares S&P 500 Index Fund PowerShares QQQ Trust iShares Barclays TIPS Bond Fund Vanguard Total Stock Market ETF iShares Russell 2000 Index Fund iShares Russell 1000 Growth Index Fund
Bloomberg ticker SPY US VWO US EFA US EEM US IVV US QQQ US TIP US VTI US IWM US IWF US
AUM (US$ Mn) $89,906.9 $47,224.5 $39,148.1 $38,831.4 $27,027.6 $24,459.4 $19,889.0 $19,527.1 $17,621.0 $13,572.5
ADV ('000 shares) 194,261 20,582 18,642 60,205 2,447 69,195 777 1,782 62,666 2,701
ADV (US$ Mn) $25,340.2 $967.2 $1,098.3 $2,792.7 $320.6 $3,898.3 $84.8 $119.8 $5,075.8 $160.4
Bloomberg ticker IUSA LN DAXEX GY ZGLD SW MSE FP IEEM LN ISF LN SX5EEX GY XDAX GY XMEM GY IBCS GY
AUM (US$ Mn) $9,267.7 $8,331.3 $7,887.5 $7,179.7 $6,707.0 $5,917.3 $5,262.7 $5,201.2 $5,068.8 $4,701.9
ADV ('000 shares) 10,141 2,948 10 3,213 1,408 14,968 1,913 1,358 1,877 152
ADV (US$ Mn) $131.6 $268.7 $19.9 $131.8 $61.7 $140.8 $78.6 $133.6 $78.3 $25.5
Bloomberg ticker STX40 SJ STXDIV SJ STXFIN SJ STXIND SJ NRD SJ
AUM (US$ Mn) $1,002.4 $154.4 $120.4 $95.4 $94.7
ADV ('000 shares) 1,107 1,214 236 32 1
ADV (US$ Mn) $4.8 $0.3 $0.3 $0.1 $0.0
Bloomberg ticker 2823 HK 2800 HK 2833 HK 510050 CH 2828 HK 159901 CH STW AU 2821 HK 069500 KS 0050 TT
AUM (US$ Mn) $7,770.8 $7,030.4 $3,949.2 $3,068.0 $2,899.7 $2,836.6 $2,424.0 $2,408.3 $2,181.0 $2,041.7
ADV ('000 shares) 88,426 19,973 65 359,532 2,000 650,481 257 12 2,290 15,627
ADV (US$ Mn) $151.7 $61.0 $2.0 $113.9 $34.3 $81.4 $12.2 $1.5 $59.3 $31.6
Bloomberg ticker 1306 JP 1321 JP 1308 JP 1330 JP 1320 JP
AUM (US$ Mn) $7,306.7 $6,499.6 $3,104.9 $3,084.2 $2,605.5
ADV ('000 shares) 5,469 890 698 517 267
ADV (US$ Mn) $58.8 $106.5 $7.4 $62.1 $31.8
EUROPE ETF iShares S&P 500 iShares DAX (DE) ZKB Gold ETF (CHF) Lyxor ETF Euro STOXX 50 iShares MSCI Emerging Markets iShares FTSE 100 iShares EURO STOXX 50 (DE) db x-trackers DAX ETF db x-trackers MSCI Emerging Market TRN Index ETF iShares Markit iBoxx Euro Corporate Bond
MIDDLE-EAST/AFRICA ETF SATRIX40 Satrix Dividend Plus SATRIX Financials SATRIX Industrials NewRand ETF
ASIA-PACIFIC ETF iShares FTSE A50 China Index ETF* Tracker Fund of Hong Kong (TraHK) Hang Seng Index ETF China AMC SSE 50 Hang Seng H-Share Index ETF E Fund SZSE 100 SPDR S&P/ASX 200 Fund ABF Pan Asia Bond Index Fund Samsung Kodex200 ETF Polaris Taiwan Top 50 Tracker
JAPAN ETF TOPIX ETF NIKKEI 225 ETF Listed Index Fund TOPIX Listed Index Fund 225 Daiwa ETF NIKKEI 225 Source: BlackRock Global ETF Research and Implementation Strategy Team
ETF Radar Magazine | Issue May 2011
14 10
Rankings Top 10 ETFs by Change in Average Daily Volume As at end March 2011
WORLDWIDE ETF SPDR S&P 500 iShares Russell 2000 Index Fund PowerShares QQQ Trust iShares MSCI Emerging Markets Index Fund Energy Select Sector SPDR Fund iShares MSCI EAFE Index Fund Financial Select Sector SPDR Fund Vanguard MSCI Emerging Markets ETF SPDR Dow Jones Industrial Average ETF iShares MSCI Brazil Index Fund
Bloomberg ticker SPY US IWM US QQQ US EEM US XLE US EFA US XLF US VWO US DIA US EWZ US
ADV (US$ Mn) $25,340.2 $5,075.8 $3,898.3 $2,792.7 $1,251.8 $1,098.3 $1,097.5 $967.2 $946.2 $905.4
ADV ('000 shares) 194,261 62,666 69,195 60,205 16,297 18,642 67,082 20,582 7,786 12,210
AUM (US$ Mn) $89,906.9 $17,621.0 $24,459.4 $38,831.4 $11,087.2 $39,148.1 $8,159.7 $47,224.5 $9,293.3 $13,312.3
AUM (US$ Mn) Q1-11 $38,831.4 $260.6 $11,087.2 $47,224.5 $7,340.2 $8,331.3 $24,459.4 $39,148.1 $6,486.7 $11,193.7
AUM (US$ Mn) Dec-10 $47,551.5 $3,650.6 $8,396.4 $44,569.8 $4,883.3 $5,917.7 $22,069.9 $36,923.1 $4,622.1 $9,332.0
Change (US$ Mn) -$8,720.1 -$3,390.0 $2,690.8 $2,654.8 $2,456.8 $2,413.6 $2,389.5 $2,225.0 $1,864.6 $1,861.7
Top 10 ETFs by Change in Assets under Management As at end March 2011
WORLDWIDE
ETF iShares MSCI Emerging Markets Index Fund Daiwa ETF NIKKEI 225 Energy Select Sector SPDR Fund Vanguard MSCI Emerging Markets ETF iShares MSCI Japan Index Fund iShares DAX (DE) PowerShares QQQ Trust iShares MSCI EAFE Index Fund iShares MSCI Canada Index Fund iShares S&P MidCap 400 Index Fund
Bloomberg ticker EEM US 1320 JP XLE US VWO US EWJ US DAXEX GY QQQ US EFA US EWC US IJH US
Source: BlackRock Global ETF Research and Implementation Strategy Team
► BIGGEST LOSER
► ENERGY STILL HOT
EEM is still having large outflows because of the turmoil in Northern Africa and Middle East, followed by Daiwa’s Nikkei ETF due to new investor fears on Japan. But EWJ (iShares Japan) enjoyed large inflows by end of March 2011.
Oil prices remain high, even if the current price levels for WTI and Brent are expected to lower a little bit within the next weeks. Hence XLE should exhibt attractive returns within the next months.
15 ETF Radar Magazine | Issue May 2011
Rankings Top 30 Best Performing ETPs As at end of April 2011
WORLDWIDE ETF/ETP
Listing Region
ProShares Ultra Silver
North America
1 Mth
25.05%
12 Mth
291.61%
158.20%
1,715,818,072.00
ETFS Leveraged Silver ETC
Europe
24.23%
305.41%
22.65%
41,856,559.00
Horizons BetaPro COMEX Silver Bull
North America
24.07%
296.87%
170.67%
66,600,525.00
ETFS Short Cocoa ETC
Europe
23.39%
-5.55%
-11.43%
1,626,134.00
Kodex Energy & Chemicals ETF
Asia-Pacific
23.17%
104.10%
66.87%
4,294,967,295.00
UBS E-TRACS CMCI Silver TR ETN
North America
21.06%
105.41%
25.64%
n/a
ETFS Leveraged Silver (DE) ETC
Europe
20.91%
286.55%
46.83%
31,479,481.00
ProShares UltraShort MSCI Japan
North America
20.11%
-13.32%
-13.18%
41,304,395.10
ETFS Short Cocoa (DE) ETC
Europe
20.09%
-9.94%
-7.82%
1,145,888.00
Kodex Autos ETF
Asia-Pacific
19.47%
103.28%
26.62%
4,294,967,295.00
PowerShares DB Commodity Dble Long ETN
North America
18.97%
54.60%
-21.43%
n/a
Direxion Daily India Bull 2X Shares
North America
18.31%
4.76%
11.47%
n/a
KB KStar Leverage ETF
Asia-Pacific
18.29% -
45.86%
4,294,967,295.00
Kodex Leverage ETF
Asia-Pacific
18.08%
58.30%
4,294,967,295.00
Mirae Asset Tiger 200 Leverage ETF
Asia-Pacific
17.93% -
45.27%
4,294,967,295.00
Horizons BetaPro NYMEX Crude Oil Bull
North America
17.23%
-5.36%
-52.08%
189,168,745.00
Daishin GIANT Hyundai Motor Group ETF
Asia-Pacific
17.18%
100.73%
103.51%
4,294,967,295.00
ProShares Ultra DJ-UBS Crude Oil
North America
16.17%
7.83%
-21.24%
n/a
ETFS Leveraged Crude Oil ETC
North America
16.03%
6.57%
-50.40%
95,247,924.00
Direxion Daily Emrg Mkts Bull 3X Shares
North America
15.67%
26.47%
73.48%
n/a
iPath DJ-UBS Cotton TR Sub-Idx ETN
North America
15.44%
148.37%
28.91%
n/a
ETFS Leveraged Petrolm DJ-UBSCI ETC
Europe
14.58%
20.91%
-42.43%
2,258,843.00
ETFS Leveraged Energy DJ-UBSCI ETC
Europe
14.34%
1.09%
-52.64%
2,511,438.00
ETFS Leveraged Cotton ETC
Europe
14.17%
496.03%
24.81%
5,837,137.00
ETFS Leveraged Live Cattle ETC iShares Silver Trust JB Physical Silver Fund AX (USD) ETFS Physical Silver ETC JB Physical Silver Fund A (USD) ETFS Leveraged Gasoline ETC
Europe North America Europe Europe Europe Europe
13.55% 13.03% 13.03% 13.03% 13.01% 13.00%
29.38% 115.38% 114.06% 115.34% 114.04% 53.86%
-11.05% 25.17% 81.83% 28.08% 81.99% -25.21%
1,271,677.00 n/a 398,236,886.00 991,022,364.00 398,236,886.00 918,041.00
52.28%
Inception
Net assets (USD)
Source: GlobalFundData/Morningstar as of May 2, 2011
► IS THE SILVER RALLY OVER – OR JUST BACKPEDALING? After a strong rally and the hit of a new all-time-high silver is consolidating. The main question is: Is the rally over or is silver just breathing deeply? The opinions are largely divided.
16 ETF Radar Magazine | Issue May 2011
Rankings Top 30 Worst Performing ETPs As at end of April 2011
WORLDWIDE ETF/ETP
Listing Region
ETFS Leveraged Cotton (DE) ETC
Europe
-37.36%
234.97%
35.37%
4,113,255.00
ETFS Leveraged Cotton ETC
North America
-34.57%
273.43%
8.38%
5,837,137.00
ETFS Leveraged Sugar (DE) ETC
Europe
-28.55%
102.24%
19.01%
4,799,704.00
ProShares UltraShort Silver
North America
-26.55%
-85.81%
-80.20%
n/a
ETFS Leveraged Sugar ETC
North America
-25.37%
125.46%
-9.79%
6,811,279.00
ETFS Short Silver (DE) ETC
Europe
-24.48%
-68.55%
-40.02%
3,834,463.00
Horizons BetaPro COMEX Silver Bear
North America
-22.26%
-83.63%
-76.30%
17,238,067.00
ETFS Cotton (DE) ETC
Europe
-21.84%
87.98%
8.28%
34,063,716.00
ETFS Short Silver ETC
North America
-21.12%
-64.94%
-37.40%
5,098,477.00
iPath S&P 500 VIX Shrt-Trm Fut (DE) ETN
Europe
-20.99%
-72.54%
-74.62%
n/a
iPath DJ-UBS Cocoa TR Sub-Idx ETN
North America
-20.49%
-4.58%
-6.22%
n/a
Source S&P 500 VIX Futures ETF
Europe
-20.02%
n/a
Direxion Daily Emrg Mkts Bear 3X Shares
North America
-19.04%
-58.91%
-79.09%
n/a
ETFS Leveraged Lead (DE) ETC
Europe
-19.02%
-7.56%
-16.22%
2,312,988.00
PowerShares DB Commodity Dble Short ETN
North America
-18.51%
-44.22%
4.56%
n/a
ETFS Cotton ETC
Europe
-18.36%
109.57%
11.76%
48,339,955.00
ETFS Leveraged Lean Hogs (DE) ETC
Europe
-17.73%
-31.81%
-37.14%
1,552,018.00
PowerShares DB Crude Oil Dble Short ETN
North America
-17.70%
-27.76%
21.16%
n/a
Direxion Daily India Bear 2X Shares
North America
-17.67%
-30.59%
-34.03%
n/a
Source S&P GSCI Cotton TR T-ETC
Europe
-17.62%
112.16%
73.42%
4,768,983.00
Horizons BetaPro NYMEX Crude Oil Bear
North America
-17.52%
-27.91%
-16.77% 170,058,816.00
ETFS Short Corn (DE) ETC
Europe
-17.26%
-57.15%
-8.82%
2,686,537.00
ETFS Leveraged Lvstck DJ-UBSCI (DE) ETC
Europe
-16.98%
-12.90%
-23.80%
1,100,641.00
ETFS Sugar (DE) ETC
Europe
-16.97%
50.76%
2.26% 29,983,559.00
ETFS Leveraged Softs DJ-UBSCI (DE) ETC ETFS Leveraged Live Cattle (DE) ETC Horizons BetaPro NYMEX Natural Gas Bear iPath VSTOXX Sh-Term Futures TR (DE) ETN ETFS Leveraged Lead ETC ETFS Short Coffee (DE) ETC
Europe Europe North America Europe North America Europe
-16.80% -16.50% -16.03% -15.76% -15.41% -15.27%
192.84% 0.07% -14.99% -63.27% 3.06% -62.20%
41.70% 1,573,766.00 -16.03% 896,113.00 53.63% 210,903,953.00 -61.89% n/a -36.57% 3,282,370.00 -24.56% 3,640,167.00
Source: GlobalFundData/Morningstar as of May 2, 2011
â–ş COTTON SUFFERS BUT THERE ARE SOME OPPORTUNITIES Cotton suffered in April but now there is a unique opportunity due to backwardation. Traders could try to profit from this downward sloping curve, but should consider that cotton prices have recently hit a historic high.
17 ETF Radar Magazine | Issue May 2011
1 Mth
12 Mth
Inception
Net assets (USD)
n/a 28,163,430.00
Disclaimer Important notice to our readers General Information The views and expectations presented in the analyses, data and product presentations in this publication should not be viewed as investment recommendations of and by the ETF Radar Magazine or any of its affiliates or associates. Investors should seek independent professional advice. Contributors of this publication and/or its affiliates may invest in or act as a market maker for the securities or indices or other products referred to in this publication for its own account or the account of a third party. Editorial contributors may also have a business relationship with issuers of such securities or providers of such indices or products and may represent members of such issuers' or providers' decision-making bodies. While the information in this publication has been obtained from sources believed to be reliable, neither the ETF Radar Magazine nor any contributor makes any representation as to its accuracy or completeness. The ETF Radar Magazine does not act as an registered investment advisor or fiduciary for anyone unless otherwise agreed. Any evaluations in this publication reflect only the author's opinion at the time of the analysis. The opinions, forecasts, assumptions, estimates, derived valuations and target price(s) contained in this material are as of the date indicated and are subject to change at any time without prior notice. This publication is general and for information only and does not constitute any form of recommendation, an offer to sell or a solicitation to buy any security or other financial instrument. Prospective investors should understand the risks associated with the products mentioned in this publication and should reach an investment decision on the basis of the information in the relevant offering circulars. Neither the staff of the ETF Radar Magazine nor any other person shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary loss or damages, including without limitation lost profits arising in any way from the information contained in the material. All designated trademarks and brands are the property of their respective owners. Additional Information All figures are subject to market fluctuation and change. Investments that are concentrated in a specific sector or industry may be subject to a higher degree of market risk than investments that are more diversified. An index is not managed and is unavailable for direct investment. Total returns assume reinvestment of all distributions, including dividends and capital gains. Reinvestment does not assure a profit or protect against a loss in declining markets. Total returns do not include commissions, fees, other transaction variables or the effects of taxation. Past performance does not guarantee or predict future results. The investment discussed may not be suitable for all investors. Investors must make their own decisions based on their specific investment objectives and financial circumstances. This communication is not an offer to sell or solicitation of offers to buy any securities mentioned herein. This report is not a complete analysis of every material fact in respect to any fund or fund type. The opinions expressed here reflect the judgment of the author as of the date of the report and are subject to change without notice. Statistical information has been obtained from sources believed to be reliable but its accuracy is not guaranteed. The ETF Radar Magazine does not render legal, accounting or tax advice. Please consult your tax or legal advisors before taking any action that may have tax consequences. The performance provided is past performance, which does not guarantee future results and current performance may be lower or higher than the performance data quoted. The investment return and principal value will fluctuate when sold and may be worth more or less than the original cost. EXCHANGE TRADED FUNDS ARE SOLD BY PROSPECTUS. PLEASE CONSIDER THE INVESTMENT OBJECTIVES, RISK, CHARGES AND THE PROSPECTUS, WHICH CONTAINS THIS AND OTHER INFORMATION, CAN BE OBTAINED FROM THE ETF SPONSOR OR YOUR FINANCIAL ADVISOR. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY. EXPENSES CAREFULLY BEFORE INVESTING.
18 ETF Radar Magazine | Issue May 2011
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