My view of what’s new and important in the ETF world
The recent launches continue to show steady progress. All 10 currently issued ETFs traded yesterday with a combined volume of over 110,000 shares.
MUB 30,700, CMF 2,100, CXA 3,600, INY 8,600, TFI 26,000, SHM 10,200, NYF 7,100, PZT 1,500, PZA 17,000, and PWZ 3,800. There are numerous buyers and significantly many odd lot trades which indicates that small buyers are entering the fray. These odd lot buyers ted to produce sticky assets which are the goal of all issuers.
Volume numbers:
MUB 27,700
CMF 2,500
NYF 1,300
TFI 37,400
CXA 55,600
INY 0
SHM 0
PZA 1,221
PZT 1,200
PWZ 4,400
There were 9 odd lot buyers in TFI(SSGA National) and 1 each in CXA, PZA and PWZ for a total of 12. CXA had greatly increased volume due mainly to 2 25,000 shares orders. Interesting that the California products are outselling the NY products (PWZ, CMF and CXA vs INY, NYF and PZT). We will see if today shows an increase on yesterdays roughly 130,000 share total volume.
My commute always includes the Path ride from New Jersey into the World Trade Center station in downtown NYC. Typically at the top of the exit stairs there are shills(advertisers) passing out leaflets/flyers to those entering and leaving the station. The last two days there have been two young ladies passing out red cards during both the morning and evening rush hours. The normal pattern is for commuters to take a handout, glance at it and drop it a few feet farther on. The sidewalk is normally littered with discards.
Last night I managed to get a seat on the train (barely beat a pregnant lady out for the last spot-only a little hip action). A woman standing in front of me caught my eye. She was carefully reading one of the red handouts. Several more people boarded the train and I noticed that they were also carrying and reading the red cards. By reading over a shoulder I determined that the cards were offering loans at a discount-second mortgages or whatever-the fact that people were reading them carefully brought home just how deep the problem probably is. Anecdotal I know but…
State Street launched three(3) more Muni ETFs this morning. California (CXA), New York (INY) and Short Term (SHM) are the three products joining TFI the National product which started trading two weeks ago. SHM is the first short term product. Van Eck is taking a slightly different approach with their National offering split by maturity into short, medium and long term. The Van Eck products should launch in late October to early November.
Decent volume in both National Products today. MUB from Barclays showed volume of 15,600 shares and TFI from State Street registered 58,000 shares. Both Barclays State name ETFs-Calif and NY showed less volume but given their infancy that is to be expected. The game gets muddier tomorrow with the launch of three Powershares products. They are PZA, PZT and PWZ. All are insured products representing a National product plus Calif and NY. early indication is that there is building interest in these products. Van Eck is still scheduled for their Muni products in late October to early November.
What is normally a dull day on the Exchanges turned out to be reasonably active in the new Muni ETF space. MUB (Barclays) traded 14,800 shares, NYF (Barclays NY) 1,200 shares, CMF (Barclays California) 13,700 shares and TFI (State Street National) 91,600 shares. Overall very respectable numbers on a day that most floor personnel were up on Broadway checking out the various Columbus Day food vendors.
The Municipal ETF field is filling out with fridays launch of NYF (New York) and CMF (California) from Barclays. First day volumes were light at 200 and 3300 shares respectively. Two possible reasons for the light initial volumes are that Barclays moved to beat the competition and therefore ran ahead of their advertising, and there was a problem with data feeds which caused an almost two hour delay in the open. Powershares launches three Muni ETFs on thursday with National Insured, California Insured and New York Insured. The Insurance wrinkle gives some differentiation from both Barclays and State Street offerings. State Street follows on Monday the 15th with three more offerings. They are a Short Term Muni ETF, California and New York. Van Eck is scheduled for three offerings near the end of the month. Van Eck is splitting their National ETF into three parts based on maturity, namely Short Term, Medium Term and Long Term. Van Eck is expected to follow with both a New York and a California offering at a later date.
Average daily volume on the Barclays National product (MUB) is 45,145 shares and on the State Street National product (TFI) 57,629 shares.
Tomorrow will mark the second phase of the Municipal ETF onslaught. A total of 5 new Muni ETFs will be allocated on the Amex. This includes 3 from Powershares, including a National Insured, a California Insured and a New York Insured. Barclays will roll out two more to go with their first to market MUB. They are California and New York. Both State Street and Van Eck have further offerings on the near horizon totalling at least 5.
Sales of both MUB(Barclays) and TFI(State Street) continue to be steady and seem to be attracting true retail orders which means sticky assets-a boon to both issuers.
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