Active ETF Market Share Update & Weekly Market Review

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AdvisorShares Active ETF Market Share Update – Week Ending 9/13/13

Last week, total AUM in all active ETFs increased by over $68.76 million. Assets in “Short Term Bond” active ETFs increased by nearly $140 million. The second largest increase in AUM came in the “High Yield” ETF category, which rose by about $20.366 million, largely due to creation units. “US Equity” active ETFs also saw a significant increase in AUM of over $8.68 million. The biggest decreases in AUM came in the “Global Bond” and “Foreign Bond” categories, which fell by $58.85 million and $44.3 million respectively. Assets in the “Alternative Income” category increased again but by less than in previous weeks; AUM increased by nearly $1.286 million. AUM for the “Alternative” active ETF category fell by almost $6.35 million. The “Currency” active ETF category saw an increase in value of about $2.56 million for the week, nearly as much as it added the week before. The smallest active ETF category, “Sustainable” ETFs, saw an AUM increase of nearly $1.185 million bringing the total AUM in that category to around $20.6 million.

Highlights of the Prior week

For the week of September 9 – September 13

Stock Markets

The major stock market indexes rose for the second week in a row. The Dow Jones Industrial Average was the best performing index last week (up 3.09%), while the Nasdaq was the worst performer (up only 1.72%). The largest component of the Nasdaq, Apple, fell significantly after releasing two new versions of the iPhone 5, which failed to impress investors. Most of the gains came early in the week, after the Obama administration seemed to have found a diplomatic solution to the chemical weapons problem in Syria. Oil prices fell after reaching a two-year high, as the US appears to have avoided another military confrontation in the Middle East. US wholesale prices rose by a greater than expected 0.3% in August. The price increases seem to be mostly due to rising food and fuel costs, not wage pressures. However, retail sales for August increased by less than expected (0.2%) and the preliminary estimate for consumer sentiment dropped to 76.8.

Bond Markets

Yields for US Treasuries fell a little bit after reaching two-year highs the previous week. While there wasn’t much change in prices for US investment-grade corporate debt, there was a lot activity in the space last week. Verizon Communication issued $49 billion in debt to pay Vodafone for its stake in Verizon Wireless. This was by far the largest corporate bond offering in history, with the previous record of $17 billion set by Apple not too long ago. High yield bonds generally rose in price and many new issues of high yield debt were oversubscribed. While municipal bonds funds and still seeing outflows, the market seems to be stabilizing as many investors are now finding the higher yields attractive. Puerto Rico is the biggest cause for concern among municipal investors and some of its bonds’ yields have climbed above 8%. Hope for a peaceful solution to the Syrian crisis caused emerging market debt to trade up for the week. However, as emerging market currencies weaken versus a stronger dollar, returns for US investors have been unimpressive. Turkey’s debt got a big boost after second quarter GDP growth numbers came in at 4.4%. Not only was this higher than expected, it was the highest growth rate since 2011 for an economy many thought was headed for troubles. Argentina also made the news, but in a negative sense, as S&P downgraded its debt from B- to CCC+.

Bond rates

As of 09.13.2013

As of 09.06.2013

2 Year Treasury

0.44%

0.45%

10 Year Treasury

2.89%

2.93%

30 Year Treasury

3.83%

3.86%

US Corporates

3.54%

3.56%

High Yield

6.82%

6.90%

Municipals (10yr)

3.15%

3.30%

Index

As of 09.13.2013

As of 09.06.2013

Dow Jones 30

15,376.06

14,922.50

S&P 500

1,687.99

1,655.17

Nasdaq

3,722.18

3,660.01

Russell 2000

1,053.43

1,030.73

Gold (per ounce)

$1,319

$1,387

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

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 objectives 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.

The indices included herein are unmanaged indices and one cannot directly invest in an index. Index returns do not reflect the impact of any management fees, transaction costs or expenses. The index information included herein is for illustrative purposes only.

There are risks involved with investing in ETFs, including possible loss of principal. Shares are actively managed and are subject to risks 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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