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ETF Exchange (ETFX) reaches $275m Assets under Management as Resource-equity related ETFs show stellar performance this year
19/10/09
- ETFX Funds now have over $275 million AUM, up 84% in the past two months.
- Resource-equity related ETFs show stellar performance this year, with ETFX Russell Global Coal Mining Fund up 109% YTD.
- ETFX equity ETF platform has seen strong trading growth, with turnover now reaching $100m per week
- Third generation ETFs pioneered by ETF Securities
London, the 19th October 2009 - ETF Securities Ltd (ETFS), the global pioneers in Exchange Traded Commodities (ETCs) and independent provider of Exchange Traded Funds (ETFs), is pleased to announce that ETF Exchange, its third generation ETF platform has now reached over $275m in assets under management.
The ETFX equity ETF platform has seen strong trading volume growth since the introduction of thematic ETFs in the fourth quarter of 2008, and 2x short and 2x leveraged equity ETFs at the end of Q2 2009, with weekly turnover in early October up four-fold since June. Recent strong turnover has been associated with swings in market sentiment since the start of the October quarter, with a growing contribution from leveraged and short ETFs recently pushing trading volumes over $100 million per week in the opening weeks of Q4.
Commodity-related ETFs have all increased sharply since the start of 2009, with average growth of 42% YTD in the week ended October 9 (21 percentage points ahead of the DJ-STOXX 50 Index). Gains have been led by a 109% increase in the ETFX Russell Global Coal Mining Fund (COAL), an 85% rise in ETFX Dow Jones 600 Basic Resources Fund (BRES) and a 60% increase in ETFX Russell Global Steel Large Cap Fund (STLL) as high beta commodities have prospered in the context of a rebound in cyclical activity indicators. Basic resources has been the strongest performing STOXX 600 sector so far in 2009, outperforming all other sectors by 50 percentage points on average YTD.
The vision for third generation ETFs was pioneered by ETF Securities. The idea was inspired by investor demands for increased levels of transparency, liquidity and counterparty risk management. ETF Securities identified that the current ETF issuance model by single financial institutions could be strengthened by diversifying index replication across a consortium of the strongest financial players and concentrating liquidity within a single platform. Under the current ETF issuance model, if the sponsoring / issuing financial institution fails, it is highly likely that their respective ETFs would be greatly disrupted and potentially liquidated.
Commenting on ETF Exchange reaching $275m in AUM, Mark Weeks, CEO of ETF Exchange, said:
“The ETF Exchange has seen rapid growth in terms of product breadth, trading liquidity, and returns since its inception in the December quarter of 2008. With the participation of a world-class network of banks the platform will offer investors a unique opportunity to trade an innovative range of ETFs with an unparalleled level of service, setting a new benchmark in global ETF trading.”
ETF Securities continues its series of conference calls for finance professionals:
'In specie ETFs Riskless? Think again! - an investors view'
Date: Thursday 22nd October 2009
Time: 11:00am and 15:00pm London Time
Speaker: Simon Luhr, CEO, PCE Investors Ltd
Click here to register your place today.
For further information, please contact:
Helen Burden
Tel: +44 (0) 20 7448 4336
Email: helen.burden@etfsecurities.com
Notes to Editors:
ETF Securities is a provider of Exchange Traded Commodities (ETCs) and 3rd generation Exchange Traded Funds (ETFs). The management of ETF Securities pioneered the development of ETCs, with the world's first listing of an ETC, Gold Bullion Securities in Australia and London in 2003 and then the world's first entire ETC platform which was listed on the London Stock Exchange in September 2006.
The Exchange Traded Products (ETPs) provide investors with a wide variety of investment strategies, with ETPs offering resource equities, physical, long, forward, leveraged and short exposure to all commodity sectors. ETPs are simple to access as they are traded in five currencies (EUR, USD, GBP, AUD and JPY) and listed on nine major exchanges globally including the London Stock Exchange, the New York Stock Exchange, the Tokyo Stock Exchange, NYSE-Euronext Paris, NYSE-Euronext Amsterdam, Deutsche Börse, Borsa Italiana, the Australian Securities Exchange and the Irish Stock Exchange.
The ETF Exchange initiative is driven by client demand for increased liquidity, innovative products and reduced credit risks and counter-party exposure. The ETFX ETFs are all swap-backed ETFs using multiple counterparties, allowing more efficient tracking, with collateral being held in excess of UCITS guidelines. This issuance model is arguably the most efficient and risk averse available today.
ETFX offers a total of 21 equity ETFs comprising Europe’s first complete platforms of resource-equity ETFs and double leveraged (2x) and double short (-2x) ETFs. These ETFs are listed on 5 European exchanges (the London Stock Exchange, Deutsche Borse, NYSE Euronext, the Borsa Italiana and the Irish Stock Exchange) and traded in 3 currencies (USD, EUR and GBP
To learn more about ETF Securities go to: www.etfsecurities.com
This press release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities (together the "Securities")of ETFS Commodity Securities Limited, ETFS Metal Securities Limited or ETFS Oil Securities Limited or any shares (the "Shares") of ETFS Fund Company public limited company (the "Fund") or any other shares or securities, nor shall it or any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto. Any offer, invitation or solicitation shall be made solely by means of the relevant prospectus (plus any supplements thereto) in the case of the Securities or the prospectus together with the relevant sub-fund supplement in the case of the Shares (in each case the "Prospectus") and recipients of this advertisement who are considering a purchase of Securities or Shares following distribution of the Prospectus are reminded that any such purchase should be made solely on the basis of the information contained in such Prospectus. This advertisement does not constitute any recommendation regarding the Securities or the Shares.
The communication of this press release is not being made by, and this press release has not been approved by, an authorised person for the purposes of section 21 of the Financial Services and Markets Act 2000 (the "FSMA"). Accordingly this press release is not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of this press release or any other document issued in connection with the offer and sale of the Shares or Securities is only being made to and directed at those persons in the United Kingdom falling within the definition of Investment Professionals (as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"), or high net worth entities, and other persons to whom it may otherwise lawfully be communicated, falling within Article 49(1) of the Order or any person to whom it may otherwise lawfully be made (all such persons together being referred to as "relevant persons"). The communication of this press release (or any other document issued in connection with the offer and sale of the Shares or Securities) must not be acted upon or relied upon by persons who are not relevant persons. The Fund is a collective investment scheme for the purposes of the FSMA and is a recognised scheme for the purposes of the FSMA. Persons distributing this press release must satisfy themselves that it is lawful to do so. All applicable provisions of the FSMA must be complied with in respect of anything done in relation to the Shares or Securities in, from or otherwise involving the United Kingdom.
This is not an offer of securities for sale in the United States. The Shares and Securities have not been and will not be registered under the US Securities Act or any other applicable law of the United States. The Shares and Securities are being offered and sold only outside the United States to non-US persons in reliance on the exemption from registration provided by Regulation S of the US Securities Act. None of ETFS Commodity Securities Limited, ETFS Metal Securities Limited, ETFS Oil Securities Limited and ETFS Fund Company public limited company (each an "Issuer") has been or intends to become registered as an investment company under the United States Investment Company Act of 1940 (as amended) (the "Investment Company Act") and related rules. Neither the Shares nor the Securities or any beneficial interest therein may be reoffered, resold, pledged or otherwise transferred in the United States or to US persons. If an Issuer determines that any holder of shares is a US Person or any holder of Securities is a Prohibited US Person (being a US Person who is not a "qualified purchaser" as defined in the Investment Company Act), the Issuer may redeem the Shares or Securities (as the case may be) held by that Security Holder in accordance with the provisions described in the Prospectus. Neither the Shares nor the Securities may be purchased with plan assets of any "employee benefit plan" within the meaning of section 3(3) of the United States Employee Retirement Income Security Act of 1974, as amended ("ERISA"), any "plan" described in section 4975(e)(1) of the United States Internal Revenue Code of 1986, as amended (the "Code") or any entity whose underlying assets include "plan assets" of any of the foregoing by reason of an employee benefit plan's or other plan's investment in such entity, which employee benefit plan, plan or entity is subject to Title I of ERISA or section 4975 of the Code or any United States Federal, state, or local law or non-United States law that is substantially similar to the prohibited transaction provisions of section 406 of ERISA or section 4975 of the Code (any such employee benefit plan, plan or entity, a "Prohibited Benefit Plan Investor"). If the Issuer determines that any Security Holder is a Prohibited Benefit Plan Investor, the Issuer may redeem the Securities or Shares held by that person in accordance with the provisions described in the relevant Prospectus.
“None of the index providers of the relevant ETFs referred to herein nor their licensors make any warranty or representation whatsoever either as to the results obtained from use of the relevant indices and/or the figures at which such indices stand at any particular day or otherwise. None of the index providers shall be liable to any person for any errors or significant delays in the relevant indices nor shall be under any obligation to advise any person of any error or significant delay therein.” “Dow Jones,” “UBS”, DJ-UBSCISM,”, “DJ-UBSCI-F3SM,” and any related Indices or Sub-Indices are service marks of Dow Jones & Company, Inc. (“Dow Jones”) and UBS AG (“UBS”), as the case may be, and have been licensed for use by the Issuer. The Securities although based on components of the Dow Jones UBS Commodity Index 3 month Forward SM (formerly known as the Dow Jones–AIG Commodity Index 3 Month Forwards SM) are not sponsored, endorsed, sold or promoted by Dow Jones, UBS, or any of their respective subsidiaries or affiliates, and none of Dow Jones, UBS, or any of their respective subsidiaries or affiliates, makes any representation regarding the advisability of investing in such product. ETF Securities Limited and each Issuer are regulated by the Jersey Financial Services Commission.
ETF Securities Limited, ETFS Commodity Securities Limited, ETFS Metal Securities Limited, ETFS Oil Securities Limited, Gold Bullion Securities Limited and ETFS Fund Company PLC are each regulated by the Jersey Financial Services Commission.
To obtain a copy of the prospectus please visit the website at www.etfsecurities.com
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