Active ETF Market Share Update & Weekly Market ReviewLearn more about this firm
AdvisorShares Active ETF Market Share Update – Week Ending 8/9/2013
Overall the total AUM in all active ETFs declined by $1.2 million last week, an insignificant amount for the $14.4 billion space. “Short Term Bond” increased by almost $29.3 million, while “Global Bond” fell by around $15.8 million. “Foreign Bond” had another bad week, ending almost $34 million lower than where it began, as did the “Currency” category which declined by more than $8.7 million. Active ETFs in the “High Yield”, “Alternative” and “Alternative Income” categories continued to raise money, increasing by $13.13 million, $8.6 million and $7.7 million respectively. Unlike in previous weeks, no “US Equity” active ETF had enough buyers to lead to a creation unit and assets fell by over $2 million due to negative weekly returns in the equity markets.
Highlights of the Prior week
For the week of August 5 – August 9
The major US indexes all declined last week, even though most of the new economic news was positive. What seemed to drive investors to sell was a fear that the good economic numbers would lead the Federal to slow down its pace of asset purchases meant to stimulate the economy. These fears were particularly pronounced on Wednesday, after the leaders of both the Atlanta and Chicago Federal Reserve Banks made comments suggesting that the Fed could decide to scale back asset purchases at its next meeting on September 17th and 18th. The ISM nonmanufacturing index rose 3.8 points to 56.0 for July, while the four-week average for jobless claims fell to 336,000 or the lowest level since November 2007. Chinese trade data released last week indicated that manufacturing activity is recovering the country, which along with good production numbers released out of Europe the prior week, points to stronger global growth in the near term. Finally, the US trade deficit fell by more than expected in June, coming in at $34.2 billion.
U.S. Treasury yields rose at the beginning of the week due to a large supply of new issues and good economic data out of Europe and China. However, by the end of week Treasury had fallen to levels below where they were at the beginning of the week. There was a lot of issuance last week in both investment-grade and high yield corporate bonds and most issues received strong investor demand many were oversubscribed. However, while investment grade corporate bonds rose in price for the week, high yield bonds lost value, especially those with longer maturities.
*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.
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