PDF 'ETF 20/20': Exchange Traded Fund Monthly Report

`ETF 20/20': Exchange Traded Fund Monthly Report

Published: July 2016 Report Scope: Global

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Key Highlights

Our monthly `ETF 20/20' report briefly summarizes recent Exchange Traded Fund (ETF) trends globally. It uses data from the First Bridge ETF database that includes all global ETPs.

? Assets for global ETPs ended the first half of June 2016 at $3.226T, up 7.4% year to date. Inflows in end June were driven by a shift into gold and treasury bond ETPs as a result of the Brexit vote.

? Over 150 new ETPs were listed globally in June 2016, including 32 in the US. Many of the US listed equity ETFs were focused on cross-sector themes, particularly ESG (environmental / social / governance) and lifestyle themes.

? In the 2 weeks after the Brexit vote, large cap UK ETFs outperformed small cap ETFs, since the former hold more companies that potentially benefit from a weaker pound. Small cap ETFs may be a better reflection of investor concerns about the potential impact of Brexit on the domestic UK market.

? US based investors are also likely to show a renewed interest in ETFs that hedge against a falling pound.

? Low volatility and dividend outperformed the other popular US equity strategies in the trailing month, as investors rotated into defensive strategies. Expectedly, Gold (GLD) was the best performing among ETFs representing 6 major asset classes, as investors looked for safety.

About Us

First Bridge provides ETF data and analytics to reputed institutional clients. Our ETF data sets include daily ETF holdings, global ETF product & smart beta classifications, historical distributions and risk metrics. Our clients include asset managers, financial software providers and research firms that use ETF data as a critical input into their systems & workflow. We often provide `high touch' services to our clients in the form of ETF data sets customized to their needs with related support. The First Bridge team combines deep expertise in the Indexing & ETF domain with skills in statistical programming and data visualization.

Email: support@ Phone: (650) 762-9270 Web:

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Global ETPs: Landscape Snapshot

Assets for global ETPs ended the first half of June 2016 at $3.226T, up 7.4% year to date. Inflows in end June were driven by a shift into gold and treasury bond ETPs as a result of the Brexit vote. For more granular data & analytics on global ETFs:

ETF / ETP Type

1. Bonds 1.1 Broad Market 1.2 Corporate 1.3 Municipal 1.4 Treasury / Sovereign 1.5 Inflation Protected 1.6 Specialty / Other

Assets ($M) - Jun '16 Assets ($M) - May '16

182,818 182,275 23,248 141,357 38,947 59,700

175,440 178,769 22,233 135,465 38,090 62,470

2. Commodities & Metals 2.1 Diversified Commodities 2.2 Agricultural 2.3 Energy 2.4 Gold & Metals 2.5 Other

13,159 2,238 9,846 103,081 135

12,383 2,260 10,127 89,292 135

3. US Equity Exposure 3.1 Broad Market & Size 3.2 Dividend & Fundamental 3.3 Factor & Thematic 3.4 Sector & Industry 3.5 Growth / Value 3.6 Quant Strategy & Other

655,916 80,678 45,282 257,555 216,890 6,928

659,603 75,558 42,716 256,219 214,886 7,382

4. Global/Ex-US Equity Exposure* 4.1 Broad Market & Regional 4.2 Country Specific 4.3 Dividend & Fundamental 4.4 Factor & Thematic 4.5 Sector & Industry 4.6 Quant Strategy & Other

478,402 372,186 73,044 60,367 63,622

1,890

498,134 374,549 76,507 56,698 59,671

1,853

5. Multi-Asset & Other

61,844

59,750

6. Inverse / Leveraged

65,605

62,715

7. ETPs Listed in Israel**

28,919

29,802

All Globally Listed ETPs

3,225,930

3,202,707

Source: First Bridge Data and individual ETF Sponsors; ETF data as of June 30, 2016

* The Global Equities category includes both International (ex-US) and Global (US + International)

** Asset breakdown by exposure type not available for ETFs listed in Israel

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Key ETF Developments ? Brexit vote

Although the "Brexit" outcome did not trigger contagion in the form of a bank collapse or trading disruptions, the long-term implications for Pan-European trade are still uncertain. The effects that ETF investors experienced in the two weeks since the Brexit vote include:

1. Performance differential in domestic vs. export oriented UK ETFs

ETFs that track the FTSE 100 and other large cap UK indices have outperformed small cap UK ETFs, since the former hold more export oriented firms that potentially benefit from the weaker pound. Small cap ETFs may be a better reflection of investor concerns about the potential impact of Brexit on the domestic UK market. US based investors are also likely to show a renewed interest in ETFs that hedge against a falling pound.

UK ETFs - 2 weeks post Brexit

110

105

100

UK Equities USD returns

(EWU)

95

UK Small Cap USD returns

(EWUS)

90

FTSE 100 (GBP)

85

UK Equities Currency

Hedged (DBUK)

80

6/24/16 6/25/16 6/26/16 6/27/16 6/28/16 6/29/16 6/30/16

7/1/16 7/2/16 7/3/16 7/4/16 7/5/16 7/6/16 7/7/16 7/8/16

ETF Data: As of 7/8/16

2. Gold ETP inflows

Gold (`GLD') was already gathering positive flows in 2016, after net outflows in 2015. Not surprisingly this trend sharply accelerated in the two weeks after the Brexit vote, as investors looked for investing safe havens.

Net Flows ($M) Mean Daily Flows ($M)

ETF Data; As of 7/8/2016

2015 -$2,031

-$8.1

2016 Pre Brexit vote $10,821 $90.2

2 weeks Post Brexit vote (6/24-7/8) $2,821

$282.1

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June 2016 ETF Launches ? US

32 new ETPs were launched in the US in June 2016. Many of the equity ETFs were focused on cross-sector themes, particularly ESG (environmental/social/governance) and lifestyle themes. All launches and closures are reflected in our regularly updated ETF list.

Table: June 2016 ETF Launches in the US

Type of Exposure US Equities

Sponsor

Tickers

Expense Ratios (in bps)

Small Cap ? Multi Factor

Deutsche Bank

DESC:US

30

S&P 100 ? Equal Weight

Guggenheim

OEW:US

40

Behavioral Momentum

Ex. Traded Concepts

BEMO:US

79

Sustainable Equity Income

Columbia Management

ESGS:US

35

Technology ? Hardware

State Street (SPDR)

XTH:US

35

Technology ? Internet

State Street (SPDR)

XWEB:US

35

US Multi-Factor - Active

ALPS

RFFC:US

52

US Dividend - Active

ALPS

RFDA:US

52

Global or Ex-US Equities

Emerging Markets - Active China A Shares Dividend & Quality - Global Multi-Factor EAFE ? Currency Hedged Multi-Factor ? Emerging & Global Lifestyle and Demographic Themes Sustainable International & Global Equity Income ESG Theme ? EAFE and EM Bonds / Fixed Income

First Trust Blackrock (iShares) Franklin Templeton Franklin Templeton

Franklin Templeton

Janus Columbia Management Blackrock (iShares)

RFEM:US CNYA:US FLQD:US

FLQH:US

FLQE:US; FLQG:US

FITS:US; OLD:US; SLIM:US; ORG:US

ESGN:US; ESGW:US ESGD:US; ESGE:US

95 65 55 40

45

50

45 40 - 45

Fixed Income Allocation

State Street (SPDR)

DWFI:US

60

Active Fixed Income

ALPS

RFUN:US; RFCI:US

51

High Yield ? ex Oil & Gas Blackrock (iShares)

HYXE:US

50

High Yield ? Previously Rated Investment Grade

Blackrock (iShares)

FALN:US

35

Commodities & Metals

GSCI Crude Oil

AccuShares

OILU:US

29

Leveraged / Inverse

S&P 500 ? Inverse

Direxion Shares

SPDN:US

45

High Yld Bond ? 2x Inverse Direxion Shares

HYDD:US

80

GSCI Crude Oil ? Inverse

AccuShares

OILD:US

29

Multi-Asset / Other

Equi-Cash Trend Allocator

RBC

ETF Data: First Bridge Data; Data as of June 30, 2016

TALL:US

85

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June 2016 ? Ex-US ETP Notable Launches

Below we summarize the notable new ETP listings outside the US in June 2016. The table below is summarized from First Bridge's ETF data sets for institutional clients.

Type of Exposure

US Equities

U.S. Equities Quality Dividend Growth ? USD, GBP, EUR S&P 500 ? CHF Hedged U.S. Equities ? ESG Non Cap-Weighted ? Max Diversification Global or Ex-US Equities

Thailand - Large & Mid Cap

EMU ESG ? Hedged to USD Japan ESG ? Hedged to EUR Japan ESG ? Hedged to USD United Kingdom ESG ? Hedged to EUR & USD Global Equities Quality Dividend Growth ? USD, GBP, EUR JPX/S&P CAPEX & Human Capital JPX/S&P CAPEX & Human Capital Europe Equities ? Low Volatility U.S. Equities ? Low Volatility Europe Equities ? Momentum Europe Equities ? Quality Europe Equities ? Value Emerging Markets ? High Dividend Low Volatility Eurozone Equities ? Large Cap Japan Equities ? Broad Market / Multi-Cap EMU Equities ex Controversial Weapons Emerging Market Equities ex Controversial Weapons Europe Equities ? Small Cap

Sponsor

Wisdom Tree Lyxor

BNP Paribas Mackenzie Investments Bangkok Capital

UBS

Wisdom Tree DIAM

Blackrock (iShares)

BNP Paribas

Invesco Powershares

Yuanta Yuanta

BNP Paribas

Tickers

Expense Ratios (in bps)

DGRA:LN, DGRG:LN, WTDM:GR, DGRA:IM

33

LYSPH:SW

15

EKLD:FP

36

MUS:CN

60

BMSCITH:TB

65

EUSRU:SW

38

U1FB:GR, JPSRE:SW JPSRU:SW

50

4UBA:GR, UKSRE:SW, UKSRU:SW

38

GGRA:LN, GGRG:LN, WTEM:GR, GGRA:IM

38

1484:JP

17

1483:JP

19

EVOE:FP

EVOU:FP 42

EMOM:FP

EQUA:FP EVAE:FP

EMHD:FP, EHDL:GR

49

00660:TT

74

00661:TT

70

EEMU:FP

31

EEMK:FP

51

EESM:FP

31

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Type of Exposure

ex Controversial Weapons Europe Equities ex UK ex Controversial Weapons Europe Equities ex Controversial Weapons UK Equities ex Controversial Weapons Pacific ex Japan ex Controversial Weapons North America ex Controversial Weapons Japan Equities ? ex Controversial Weapons Global Equities ? ex Controversial Weapons Canada ? Non Cap Weighted Max Diversification Global Equities Energy ? Currency Hedged Global Volatility, Value, Momentum, Liquidity Active UAE Equities Japan Equities ? Physical and Human Capital Nasdaq 100 ? HKD, CNY, USD Nasdaq-100 UK Equities Large Cap ? HKD, CNY, USD Taiwan Equities ? HKD, CNY, USD Germany Equities Large Cap ? HKD, CNY, USD Eurozone Equities Large Cap ? HKD, CNY, USD Korea Large Cap ? HKD, CNY, USD Japan ETN ? Large & Mid Cap China H-Share

Korea Mega Cap ? Turnaround, Value, Growth

India Large Cap ? Value India Mid Cap

Sponsor

BNP Paribas

Mackenzie Investments Beta Shares ETF

Vanguard Afkar Capital

Mitsubishi Blackrock (iShares) Fubon AM

Mirae Asset Mirae Asset

Samsung ICICI Prudential ICICI Prudential

Tickers

EEXU:FP

EEUE:FP

EUKD:FP

EPEJ:FP

ENAM:FP

EJAP:FP

EWRD:FP

MKC:CN

FUEL:AU

VVO:CN, VVL:CN, VMO:CN, VLQ:CN

UAETF:UH 1485:JP

2834:HK, 82834:HK, 9834:HK 00662:TT

2847:HK, 82847:HK 9847:HK

3074:HK, 83074:HK, 9074:HK

3146:HK, 83146:HK, 9146:HK

3155:HK, 83155:HK, 9155:HK

3170:HK, 83170:HK, 9170:HK

590005:KS, 590006:KS 245360:KS 247800:KS; 247780:KS; 247790:KS ICPNV20:IN ICPMIDC:IN

Expense Ratios (in bps)

31

41 31 41 46 60 47

35 100 22 28 55 20 30 20 20 30 90 35 45

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Type of Exposure

Sponsor

Bonds

Corporate Bond ? Floating Rate USD hedged to EUR High Yield Corporate Bond ? EUR High Yield Corporate Bond ? USD, GBP, EUR Sovereign Bond ? India Turkey Sovereign Bond ? EUR & GBP Developed Market Govt. Factor Weighted China Medium Term Govt. Bond ? EUR, USD, CNY Long Term Sovereign Bond ? India Commodities & Metals

Amundi

DBX Strategic Advisors Blackrock (iShares)

MCB Invt. Mgmt.

ZyFin Funds

ETF Securities

Fullgoal Asset Management

SBI

Diversified Commodities Energy ? Crude Oil Leveraged / Inverse

Wisdom Tree Horizons

Korea Large Cap Equities ? Leveraged & Inverse

Samsung

Japan Multi Cap Equities ? Leveraged & Inverse

Samsung

Energy WTI Oil ? EUR, USD,

GBP (1xInverse)

Energy WTI Oil ? EUR, USD,

GBP (2xLeveraged)

Energy WTI Oil ? EUR, USD,

GBP (2xInverse)

Energy WTI Oil ? EUR, USD,

GBP (3xLeveraged)

BOOST

Energy WTI Oil ? EUR, USD,

GBP (3xInverse)

S&P 500 VIX Short-Term

Futures

(2.25xLeveraged)

Emerging Markets ?

3xLeveraged & Inverse

S&P 500 ETN ? Leveraged & Inverse

Mirae Asset

ETF Data source: First Bridge; June 30, 2016

Tickers

FRNH:GR, HFRN:IM

XDEP:GR WING:LN, RISE:LN,

QDVQ:GR MISB:MP TRKY:GR, TRKY:LN, TURK:LN HCOE:GR RMB1:LN, RMB1:IM RMB2:LN, RMB3:LN, SBIGILT:IN

WCOA:IM, WTIC:GR 3097:HK

7250:HK, 7326:HK

7255:HK, 7311:HK OI1S:GR, OILZ:LN,

OIZL:LN 2OIL:GR, 2OIL:LN,

2OLI:LN 2OIS:GR, 2OIS:LN,

2OSI:LN 3BFM:GR, 3BRL:LN,

3BLR:LN 3BFS:GR, 3BRS:LN,

3BSR:LN

VIXL:GR

3E3M:GR, 3E3S:GR 590010:KS, 590011:KS

Expense Ratios (in bps)

20 25 50 99 89 30 55

35 99

105 49 65

99

90

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