Active ETF Market Share Update & Weekly Market Review

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AdvisorShares Active ETF Market Share Update – Week Ending 8/2/2013

Overall the total AUM in all active ETFs declined by $2.5 million last week, an insignificant amount for the $14 billion space. The biggest change of the week was the “Short Term Bond” category overtaking the “Global Bond” to become the largest category in active ETF space. “Short Term Bond” increased by almost $64 million, while “Global Bond” fell by more than $71 million. Several trends continued from previous weeks; “Foreign Bond” and “Currency” declined (by over $36 million and $8.2 million respectively), while “Alternative Income” and “US Equity” grew (by over $24 million and $14.7 million respectively). In terms of the smaller categories, “Multi-asset” declined by more than $5.5 million, while “Foreign Equity” saw its first major increase in a while with an increase of over $1 million.

Active ETF Market Share by Sponsor

Asset Class

AUM

% of Mkt Share

# of ETFs

PIMCO

$8,565,182,972.00

59.36%

7

WisdomTree

$2,963,338,300.00

20.54%

13

AdvisorShares

$838,247,477.24

5.81%

18

State Street

$731,469,158.63

5.07%

4

First Trust

$584,187,932.34

4.05%

5

Guggenheim

$425,878,340.00

2.95%

2

Cambria

$121,351,500.00

0.84%

1

PowerShares

$95,449,492.93

0.66%

2

Huntington

$28,192,662.03

0.20%

2

Flexshares

$26,282,380.09

0.18%

1

Columbia

$25,558,513.63

0.18%

5

iShares

$15,028,705.00

0.10%

2

Russell

$8,236,950.00

0.06%

1

Total

$14,428,404,384

100.00%

63

Source: AdvisorShares Investments

Active ETF Market Share by Strategy

Asset Class

AUM

% of Mkt Share

# of ETFs

Short Term Bond

$4,447,633,080.09

30.83%

4

Global Bond

$4,444,598,295.03

30.80%

5

Foreign Bond

$2,287,149,780.00

15.85%

5

Alternative Income

$1,082,902,178.54

7.51%

5

Alternative

$615,851,881.02

4.27%

10

Currency

$542,442,018.00

3.76%

6

High Yield

$313,823,874.16

2.18%

2

US Equity

$271,542,486.26

1.88%

10

US Bond

$232,790,832.70

1.61%

5

Multi-Asset

$115,331,469.44

0.80%

4

Global Equity

$28,690,664.38

0.20%

3

Foreign Equity

$24,620,617.08

0.17%

2

Sustainable

$21,027,207.19

0.15%

2

Total

$14,428,404,384

100.00%

63

Source: AdvisorShares Investments

Highlights of the Prior week

For the week of July 29 – August 2

Stock Markets

The major stock indexes were up for the week and for the month of July. In fact, both the S&P 500 and the Dow Jones Industrial Average made new highs, while the best performing index of the week, the Nasdaq Composite, reached its highest level in 12 years. Plenty of good economic news was released around the middle of the week. On Wednesday morning, the market rallied after the Commerce Department’s advanced estimate of second quarter GDP growth came in at a higher than expected 1.7% annualized rate. The ISM manufacturing index increased to 55.4 for July, or the highest level in two years, while the Markit PMI increased to 53.7. Although ADP estimates showed solid job growth for June and weekly jobless claims declined more than anticipated, Friday’s official number for payroll growth from the Labor Department came in at a lower than expected 162,000 jobs causing the market to dip slightly. The unemployment rate actually fell to 7.4% from 7.6% but this was mainly due to discouraged workers dropping out of the labor force. Even though the Fed downgraded its outlook for US GDP growth from “moderate” to “modest” this week, investors reacted favorable to the Fed’s two day meeting because they believe that the Fed will remain cautious and hold back on slowing down its asset purchases of around $85 billion per month. Earnings season is almost over and two-thirds of S&P 500 companies have beaten second quarter estimates, according to Thomson Reuters’ data.

Bond Markets

US Treasury bonds had a very volatile trading week as bond investors reacted to economic news and statements from the Federal Reserve. There were two brief rallies during the week, after Fed Chairman Bernanke’s comments and after the Friday’s disappointing Labor Department jobs numbers, but ultimately long-term Treasury yields ended the week slightly higher. Treasury inflation protected securities had a better week than normal bonds due to rising oil prices and statements from the Fed that it regards persistently low inflation as a threat to economic growth. Prices for high yield corporate bonds fell slightly for the week, following several weeks of good performance. Trading in emerging market debt was very limited. Global investors are continuing to exit emerging market debt funds, but the overall pace of withdrawals was slower than in previous weeks.

Bond rates

August 2, 2013

July 26, 2013

2 Year Treasury

0.30%

0.31%

10 Year Treasury

2.61%

2.55%

30 Year Treasury

3.69%

3.61%

US Corporates

3.24%

3.23%

High Yield

6.69%

6.65%

Municipals (10yr)

2.99%

2.97%

Index

August 2, 2013

July 26, 2013

Dow Jones 30

15,658.36

15,558.60

S&P 500

1,709.67

1,691.65

Nasdaq

3,689.59

3,613.16

Russell 2000

1,059.74

1,047.66

Gold (per ounce)

$1,309

$1,331

Sources:

*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 Bloomberg.com

*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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