Active ETF Market Share Update & Weekly Market Review

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AdvisorShares Active ETF Market Share Update – Week Ending 7/19/2013

This past week, total assets in the active ETF space increased by over $60 million. The top 3 categories (“Global Bond”, “Short Term Bond” and “Foreign Bond”) all saw increases in AUM. The “Alternative Income” category fell in AUM, after weeks of only going up. The category ended with over $20 million less than it did in the previous week mainly because of unusual redemption activity in one fund. The “US Equity” category finally overtook the “US Bond” category in AUM, as the former increased by almost $14 million while the later decreased by over $2 million. The “High Yield” category, made up of the two active ETFs that invest mainly in high yield bonds, crossed the $300 million mark, to end the week with $311,762,427.82 in AUM. One trend from weeks that continued hold was a decline in AUM for the “Currency” category as active ETFs in this space continue to experience redemptions.

Highlights of the Prior week

For the week of July 15 – July 19

Stock Markets

Several US stock market indices, with the exception of the technology heavy Nasdaq, set new all-time highs last week as many companies reported second quarter earnings numbers. The Nasdaq index ended a 15 day streak of gains on Tuesday, the longest such stretch since 1990. Many financial companies outperformed the market, after several major banks reported good quarters with higher lending rates and reduced defaults. Economic data was mixed but the market seemed to react favorably to the overall economic landscape. On the positive side, jobless claims fell to 334,000 after rising slowly for the past two months and a positive report on manufacturing in the Mid-Atlantic region was released. There were also some bad data points for June, such as a lower than expected retail sales growth number and a decline in housing starts and permits. Ben Bernanke also helped calm investors’ fears once more, when he said that the Fed would only increase its range for the federal funds rate if employment fell below 6.5% and if the drop is not due to workers dropping out of the labor force.

Bond Markets

For the second week in a row, US Treasury prices rose as yields declined. For the first time in a while Treasury inflation protected securities were in high demand. Thursday, July 18th was the first time since 2011 that an newly auctioned TIPS provided investors with a positive real yield. This is in large part to higher than expected consumer inflation data that was released last week (the headline CPI was up 1.8% y-o-y, while core CPI was up 1.6%). High yield bonds had another good week, as the asset class sees large net inflows as investors take advantage of a drop in prices caused by June’s sell-off. Investment grade corporates and bank loans also gained for the week. While emerging market debt gained for the week, US investors are still taking more money out of the asset class than they are putting in. Argentina’s bonds benefited from a better than expected GDP growth number, while Egypt’s sovereign debt was boosted by a news of the country securing large loans from its Arab neighbors in the Persian Gulf.

Bond rates

July 19, 2013

July 12, 2013

2 Year Treasury



10 Year Treasury



30 Year Treasury



US Corporates



High Yield



Municipals (10yr)




July 19, 2013

July 12, 2013

Dow Jones 30



S&P 500






Russell 2000



Gold (per ounce)




*Indexes are from Reuters and Yahoo! Finance 4pm closing data

*Gold prices are from EcoWin and J.P. Morgan Asset Management

*Treasury rates are from

*Municipal and high yield rates are from Barclays Capital

*30 year mortgage rate comes from the Mortgage Bankers Association (MBA)

Past performance is not indicative of future results.

This document should not be considered investment advice and the information contain within should not be relied upon in assessing whether or not to invest in any products mentioned. This document has been prepared without regard to the individual financial circumstances and objective of persons who received it. The securities discussed in this document may not be suitable for all investors.

This material was compiled by AdvisorShares based on publically available data. AdvisorShares makes no warranties or representation of any kind relating to the accuracy, completeness or timeliness of the data and shall not have liability for any damages of any kind relating to such data.

There are risks involved with investing in ETFs including possible loss of money. Shares are actively managed and are subject to risk similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply.

Shares are not individually redeemable and owners of the shares may acquire those shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations only, typically consisting of 50,000 shares.

AdvisorShares® is a registered trademark of AdvisorShares Investments, LLC. The trademarks and service marks contained herein are the property of their respective owners.

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