Download - IndexUniverse.com
Download - IndexUniverse.com
Download - IndexUniverse.com
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
ALPS Debuts Jefferies Funds<br />
ALPS is sponsoring three new funds<br />
from Jefferies Asset Management that<br />
track the Thomson Reuters/Jefferies<br />
In-The-Ground CRB Global Commodity<br />
Equity Index and two of its subindexes.<br />
The underlying index of the Jefferies<br />
TR/J CRB Global Commodity Equity<br />
Index Fund (NYSE Arca: CRBQ) covers<br />
145 <strong>com</strong>panies that produce energy,<br />
agricultural products, raw metals and<br />
precious metals.<br />
CRBQ, however, was just the first<br />
fund in the family; it debuted in<br />
September. October saw the launch<br />
of the Jefferies TR/J CRB Global<br />
Agriculture Equity Index Fund (NYSE<br />
Arca: CRBA) and Jefferies TR/J CRB<br />
Global Industrial Metals Equity Index<br />
Fund (NYSE Arca: CRBI). CRBQ and<br />
CRBA <strong>com</strong>pete directly with existing<br />
ETFs, but CRBI is the first global,<br />
broad-based mining ETF to focus<br />
strictly on industrial and base metals.<br />
All three funds charge annual<br />
expense ratios of 0.65 percent.<br />
UBS Launches DJP Competitor<br />
Near the end of October, UBS<br />
launched its first new ETN in more<br />
than a year. The firm had rolled out its<br />
E-Tracs family of ETNs in the first half<br />
of 2008 and then saw them languish—<br />
no doubt in part because of the credit<br />
disaster that followed in the second<br />
half of the year. But the firm’s partial<br />
ownership of the popular Dow Jones-<br />
UBS Commodity Index (formerly the<br />
DJ-AIG Commodity Index) may <strong>com</strong>e<br />
with some serious upside.<br />
The E-TRACS Dow Jones-UBS<br />
Commodity Index Total Return ETN<br />
(NYSE Arca: DJCI) tracks the popular<br />
Dow Jones-UBS Commodity Index, a<br />
broadly diversified index of 19 <strong>com</strong>modity<br />
futures. It charges investors<br />
just 0.50 percent in annual expenses.<br />
That’s in marked contrast to the<br />
market-dominating iPath DJ-UBS<br />
Commodity Index Total Return ETN<br />
(NYSE Arca: DJP), which charges 75<br />
basis points. DJP is the largest ETN on<br />
the market in terms of assets, at $1.9<br />
billion, but it looks like it could face<br />
serious <strong>com</strong>petition from DJCI.<br />
Pimco Launches FIVZ, ZROZ<br />
Pimco’s newest bond ETFs began trading<br />
in early November, with the launch of<br />
the Pimco 3-7 Year U.S. Treasury Index<br />
Fund (NYSE Arca: FIVZ) and the Pimco<br />
25+ Year Zero Coupon U.S. Treasury<br />
Index Fund (NYSE Arca: ZROZ).<br />
FIVZ tracks the Merrill Lynch 3-7<br />
Year U.S. Treasury Index, while ZROZ<br />
reflects the performance of the BofA<br />
Merrill Lynch Long Treasury Principal<br />
STRIPS Index. Both <strong>com</strong>e with a price<br />
tag of 15 basis points.<br />
BACK TO THE FUTURES<br />
CME Launches DJ-UBSCI Swaps<br />
In November, CME Group announced<br />
the Dec. 7 launch of cash-settled swaps<br />
on the Dow Jones-UBS Commodity<br />
Index. The exchange said that it would<br />
be providing clearing services through<br />
its CME ClearPort service.<br />
The new swaps join CME’s existing<br />
futures contract on the DJ-UBSCI.<br />
According to the CME, the swaps<br />
“will be subject to position accountability,<br />
transaction reporting, and margining<br />
and risk management standards<br />
that are <strong>com</strong>parable to <strong>com</strong>modity<br />
index futures contracts.”<br />
KNOW YOUR OPTIONS<br />
CBOE Sees Declining Volumes<br />
Year-Over-Year<br />
Overall trading average daily volume<br />
(ADV) at the Chicago Board<br />
Options Exchange in October 2009<br />
declined 21 percent from October<br />
2008. However, the ADV for cashsettled<br />
index options and ETF options<br />
was down even further.<br />
The index options ADV fell 36<br />
percent year-over-year in October,<br />
while the ETF options ADV fell 39 percent.<br />
Year-to-date, the CBOE’s overall<br />
ADV was down just 6 percent, but<br />
down 17 percent and 19 percent<br />
for index options and ETF options,<br />
respectively.<br />
During October, the options on the<br />
S&P 500, the SPDR S&P 500 ETF, the<br />
PowerShares QQQ Trust, the CBOE<br />
Volatility Index and the iShares Russell<br />
2000 Index Fund were the most actively<br />
traded index and ETF options.<br />
FROM THE EXCHANGES<br />
Deutsche Boerse Changes<br />
Index Licensing Model<br />
It appears that Deutsche Boerse<br />
is going to be keeping a tighter grip<br />
on its index data starting in 2010.<br />
An October announcement from the<br />
exchange said that it was moving to<br />
align its business model with international<br />
practices.<br />
Basically, going forward from Jan.<br />
1, more detailed data on the DAX will<br />
be made available for professional<br />
and <strong>com</strong>mercial use only after the<br />
users sign licensing contracts. Certain<br />
data will still be publicly available,<br />
including methodology, constituents<br />
and some historical information.<br />
However, the change will not<br />
necessarily be that abrupt, as the<br />
exchange has declared a three-month<br />
transition period that is set to end on<br />
March 31, 2010.<br />
ON THE MOVE<br />
Bond Trims PowerShares Role<br />
H. Bruce Bond, founder, CEO and<br />
chairman of Invesco PowerShares,<br />
announced in November that he will<br />
be scaling back his role with the ETF<br />
provider and will no longer hold the<br />
position of CEO.<br />
Ben Fulton, currently the executive<br />
vice president in charge of global<br />
product development, will be taking<br />
on the day-to-day management<br />
responsibilities of the Invesco unit as<br />
a managing director.<br />
PowerShares’ leadership team will<br />
report to Fulton, who will also join<br />
the Invesco Global Product Committee.<br />
Invesco executives Andrew Schlossberg<br />
and David Warren will also take on<br />
leadership roles with the Invesco<br />
PowerShares unit.<br />
Bond said he will remain active and<br />
involved with PowerShares, but that<br />
the change will give him more flexibility<br />
to work on other things. He<br />
originally founded PowerShares Capital<br />
Management in 2003.<br />
Fulton joined the PowerShares team<br />
in 2005 from Claymore Securities,<br />
where he was co-founder, president<br />
and CEO.<br />
www.journalofindexes.<strong>com</strong> January/February 2010<br />
61