Printer Friendly

ETF Landscape: European DJ STOXX 600 Sector ETF Net Flows.

Summary: This is a weekly publication covering European Sector ETF Net Flows, analysing all ETFs listed in Europe tracking

This is a weekly publication covering European Sector ETF Net Flows, analysing all ETFs listed in Europe tracking the DJ STOXX 600 sectors. Click here to download the report.Inflows to ETFs have broad relevance to the pattern of fund allocations. ETFs have been and will be increasingly used as a means of trading short-term beta. Although today given that the annual Total Expense Ratios (TER) have come down on average to 37 bps for equity ETFs, they are embraced as a tool for core holdings, strategic holdings, tactical asset allocation and building blocks in fund of funds and multi-asset class strategies.An increasing number of institutional investors have embraced the use of passively managed ETFs over the past year as an alternative to using certificates and swaps as they try to avoid products which have counterparty or issuer risk. Other investors have turned to ETFs after deciding to limit or refrain from using derivatives including futures. A growing number of investors understand that ETF liquidity is really the liquidity of the underlying basket of stocks given the unique creation and redemption process that ETFs utilise. MiFID (Markets in Financial Instruments Directive) is especially important in Europe where the reporting of ETF trades is not required under MiFID. This means that best estimates are that only a third of ETF trades are reported on-exchange.The table below shows the index ticker, number of stocks in the index and the sector weight. The performance data is shown in US$ total return performance for the last week and year-to-date. We rank the sectors based on weekly performance with the top performing sector being ranked #1 and worst being #19 and the same for YTD performance. The ETF AUM column represents the combined assets in all ETFs in that sector. The 5-day ADV looks at the turnover last week in all ETFs in that sector. The weekly, month-to-date (MTD) and year-to-date (YTD) net flows are converted into US$ and each illustrated in the bar charts to the right. The data required to produce the flow analysis is available by Tuesday evening which means the earliest this publication can be distributed is on Wednesdays.Last week saw US$247.2 Mn net inflows to DJ STOXX 600 sector ETFs. The largest sector ETF inflows last week were in Basic Resources with US$137.6 Mn and Automobiles & Parts with US$31.9 Mn while Media experienced net outflows of US$10.5 Mn.Year-to-date, Basic Resources has been the most popular sector with US$416.3 Mn net new assets, followed by Banks with US$388.8 Mn net inflows. Retail sector ETFs have been the least popular with US$36.3 Mn net outflows YTD.We hope you find this publication of interest. If any of your colleagues would like to subscribe please have them send their name, title, company name, postal address, email and phone to We also welcome any comments or questions. Below is a list of some upcoming events where we will be presenting: J.P. Morgan Chase Masterclass, New York, 2009 Al Bawaba (

2009 Al Bawaba (

Provided by an company
COPYRIGHT 2009 Al Bawaba (Middle East) Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2009 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Date:Nov 5, 2009
Previous Article:Turner Classic Movies encourages filmmakers in the region.
Next Article:D-LinkA Add-In For Microsoft A WindowsA Home Server Now Available.

Related Articles
Demonstrating arbitrage using Diamonds and the Dow Jones Industrials index.
Emerging Global Advisors sets up emerging market ETFs.
iShares launches new emerging markets infrastructure ETF.
iShares announces launch of iShares MSCI All Peru Capped Index Fund (EPU).
First Nordic ETF starts trading on the NYSE Arca.
Net inflows into exchange traded products reach ,e1/441 billion.
HSBC enters European ETF market.
Net inflows into exchange traded products reach nearly $60 billion.
Eurozone equity ETF hits the market.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters