Active ETF Market Share Update & Weekly Market Review

Learn more about this firm

AdvisorShares Active ETF Market Share Update – Week Ending 10/11/2013

Since the end of September, total AUM in all active ETFs increased by almost $443 million. Assets in the two largest categories “Short Term Bond” and “Global Bond” fell by $61 million and $12.77 respectively. The “Foreign Bond” category also fell, by $19.38 million. The largest gain was in “Currency” active ETFs, which a AdvisorSharesdded an impressive $499.5 million in value due to flows into one fund. The second largest increase in AUM came in the “High Yield” ETF category, which this time rose by over $17.8 million, mainly due to creation units. The “Alternative Income” category increased by $8.59 million and the “US Equity” category increased by $5.96 million. While some funds in the “Alternative” category had creations and others experienced redemptions, AUM fell almost $2.3 million. Finally, the “Multi-Asset” and “Foreign Equity” categories increased by a little over $3 million each.

To subscribe to our full monthly report, please register at www.advisorshares.com (note the full report is only available to financial professionals).

Highlights of the Prior week

For the week of October 7 – October 11

Stock Markets

The markets were volatile last week. The major benchmarks, with the exception of the Nasdaq went up. As in the previous weeks, political developments drove the markets. The markets declined until Wednesday due to the ongoing government shutdown. On Wednesday, the markets reacted favorable when President Obama and the House Republicans agreed to meet. Also on Wednesday, Alcoa was the first major American company to report earnings, which were positive. Wells Fargo and JP Morgan also reported earnings. Thursday was the best day in two years for the large-cap benchmarks, based on news of a Republican plan to extend the debt ceiling for another six weeks. On Wednesday, Obama nominated Janet Yellen to be the next Chair of the Fed. She is thought to be more dovish than Ben Bernanke. In terms of economic statistics, consumer sentiment decreased in October, the NFIB Small business optimism index fell and jobless claims increased to 374,000.

Bond Markets

Due to fears about hitting the debt ceiling, Treasury bonds maturing this month dropped in price. However, on the good news on Thursday caused bonds to increase in price. High yield corporate debt has been performing well, despite the political situation. Municipal bonds fell a little bit, and the state of Massachusetts decided to investigate money managers who are alleged to have misled investors about their holdings in troubled Puerto Rican debt. Emerging market debt performed well, especially after Thursday. Brazil raised interest rates again and India’s current account deficit contracted.

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.

© AdvisorShares

www.advisorshares.com

© AdvisorShares

Read more commentaries by AdvisorShares  

Learn more about this firm