Archive for the 'Exchange Traded Funds-Creation' Category

Interesting New Products

Greenhaven launched a new Commodity ETF last thursday. The symbol is GCC and it is based on the old CCI(Continuous Commodity Index).  The Index has 17 commodities equally weighted. The bulk of the other Commodity based ETFs are heavily weighted with the energy sector. With 9000 shares on day one and 21,000 shares on day two it looks like a favorable launch.Van Eck launched a gaming ETF, symbol BJK.  While not moving quickly the first two days it appears to be a product with some hope.On the Municipal ETF front there continues to be signs of success. After a relatively slow start, there is some growth in AUM in the Barclays, Powershares and State Street lists. Van Eck offerings have been slower but like the others national products they should gain some momentum. 

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Municipal ETFs

Van Eck has joined the fray with their long term offering MLN. Typically the first day results were spotty but that has been the norm for new issues.All of the long term National Municipal ETFS have sold well and the seed money has been finished. Barclays MUB, SSGA’s TFI and Powershares PZA all continue to sell well and grow in assets. Of some interest is the fact that the NY and Calif Muni ETFS are starting to show some real movement. INY, and CXA from SSGA, NYF from Barclays, PZT and PWZ from Powershares are all showing a pick up in sales. Likewise SSGAs short offering of SHM has doubled its AUM and Powershares PVI(short VRDO) continues to show consistent sales and consequent growth. What was moribund in November has become lively in late December and early January. The yields still look attractive. 

Municipal ETFs, Oil 2, Timber

Municipal ETF volume topped 100,000 shares on friday. With the  announcement of some kind of agreement coming from the Treasury and the financial world, we would expect an uptick in the Muni ETF volume this week. Volumes for friday:TFI   15,500<,PVI   5,300,SHM  6,300,PZT  1,300,PZA   14,500,NYF  2,800,CXA  1,800,MUB  43,300. It should also be noted that TFI(SSGA National Munis) had several creations this past week indicating that more than one seller was creating to cover short sales.FXP(ProShares China double down) had a fairly light day at 1,212,300 shares but has average daily volume of 1,323,070 shares daily on a very young product. CUT, the Timber product from Claymore and Andy Corn continues to show steady growth and should be an interesting play and grower over time.This week should bring US Oil2 from Victoria Bay. This is the second coming of USO with the difference being  that the underlying is a 12 month strip of futures instead of USO front use of the front month future. The hope is that the strip will attract more sticky assets that Oil 1. On the near horizon in Vanguards EDV-an ETF based on zero coupon/strips on Treasuries. First to market and the halo effect of Vanguards sales effort and reputation should make this an interesting product. 

Muni ETFs and New Issues

Several new issues launched last week with very positive results. First out of the gate was ProShares FXP(double down China). Volume is hitting one million shares per day and there have been at least six more creation units jumping the assets under management sharply.

Powershares launched two products on thursday. PVI (VRDO-very short-money market type product-tax exempt). Volume totalled almost 100,000 shares for the two days. Spreads have been 2-3 cents wide. We would expect this product to grow steadily. Powershares also launched PHB(high yield) which has been less robust for the first two days of trading. The subprime and CDO credit issues undoubtedly have had an effect on sales of this product though longer term it has real promise.

Barclays launched AIA(Asia 50) on the ARCA platform on friday to a heartening first day volume of over 50,000 shares. This appears to be one of the more successful recent ARCA launches.

On the Muni ETF front, there appears to be a pickup in flow and an improvement in the bids on the ETFs and the muni market in general.

The coming week is slow in terms of new issues with a pick up during the following two weeks.

Municipal Bond ETFs 10/24/2007

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.

Municipal Bond ETFs 10/17/2007

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.

SSGA MUNI ETFs

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.