Seeking Alpha

Roger Nusbaum's  Instablog

Roger Nusbaum
  • on Retirement
Send Message
Roger Nusbaum is the ETF Strategist for AdvisorShares. This Arizona-based professional has over 25 years of industry experience. He is also a well-known financial commentator covering ETFs, retirement planning and portfolio management for AlphaBaskets.com and at TheStreet.com. We think Roger is... More
My company:
AdvisorShares
My blog:
Random Roger
  • AdvisorShares Active ETF Market Share Update – Week Ending 3/20/2015

    Assets in actively managed ETFs increased last week by $473 million or 2.4% to $19.557 billion. There were no new funds launched last week, leaving the count at 123 actively managed fund. PIMCO benefitted from most of that net inflow at $316 million followed by $62 million into State Street and $48 million into First Trust. Outflows last week were small led by $16 million from AdvisorShares and $5 million from PowerShares. At the category level Short Term Bond had the largest inflow with $337 million as most of that went into the PIMCO Enhanced Short Duration ETF. Global Bond had $61 million of inflows and the Bank Loan category had $44 million. High Yield had $17 million of outflows followed by $9 million from Foreign Bond. Last week's activity led to a 92 basis point in increase in market share for Short Term Bond. To subscribe to our full monthly report, please register at www.advisorshares.com (note the full report is only available to financial professionals). (click to enlarge) Number of Active ETFs by Sponsor Number of Active ETFs by Strategy

    There are risks involved with investing in ETFs including possible loss of money. Shares are actively managed and are subject to risk 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.
    Mar 24 11:29 AM | Link | Comment!
  • AdvisorShares Weekly Market Review – Week Ending 3/20/2015

    Highlights of the Prior Week

    The Fed Loses Patience

    By: Roger Nusbaum, AdvisorShares ETF Strategist

    Macro

    The Federal Reserve Bank apparently figured out how to remove the word "patient" from its guidance without triggering fear and anxiety in the capital markets. The Fed will be data dependent, which is not a new term, and also appeared to take hiking rates in June off the table. The immediate reaction on Wednesday was a huge rally in equities and bonds (yields went back below 2% on the Ten Year Note), a three cent gain for the euro against the dollar which is a huge move, gold also rallied and crude oil even got in on the party rising better than 3% that day.

    Those trades mostly reversed direction on Thursday in varying degrees. Then on Friday they all again reversed direction, picking up on Wednesday's post Fed reaction including another huge move up in the price of West Texas Intermediate Crude.

    In last week's Alpha Call Martin Pring mentioned that the US is importing deflation from most of Europe and Japan. This is evident in the dollar's general strength against most currencies, economic data that is weaker than that of the US, other countries still in the early stages of quantitative easing versus the US which has ended its asset purchase program (although it will still use proceeds from matured holdings to buy more debt) and the fact that Spain, Portugal, Italy and Ireland have sovereign debt yields below yields available on US Treasury debt despite having inferior credit ratings.

    All of this puts up a major obstacle to the Fed's raising rates anytime soon. All of the above have contributed to the dollar's strength but too much strength becomes a problem for the US economy for domestic companies selling abroad. Higher interest rates would be likely to lift the dollar even higher, exacerbating the problem for domestic multinational companies. Should the dollar continue higher it would put further pressure on earnings growth which could then impact GDP growth possibly fomenting the next recession.

    Domestic equities were volatile but closed the week higher. The Dow Jones Industrial Average gained 2.14%, the S&P 500 added 2.68%, the NASDAQ led the way with a 3.16% lift and the Russell 2000 gained 2.75%.

    All of the major foreign equity markets we follow in this report traded higher last week. The DAX was up 1.16%, the CAC 40 gained 1.74%, the FTSE 100 4.11%, the Nikkei 225 1.56%, the Hang Seng 2.38% and Australia was better by 2.81%. The Shanghai Composite went on a 7.26% tear on the heels of a Mario moment which refers to Mario Draghi saying the ECB would do whatever it takes, well China also has tools at its disposal to stimulate economic activity if needed.

    The yield on the Ten Year US Treasury Note continued to decline last week, falling below 2% to 1.93%. Yields in Europe generally fell in step with US yields last week. The German bund now yields 18 bp down from 26 bp the week before. The French OAT now yields 44 bp and the Swiss ten year moved further into negative territory at -0.07%. Yields in some of the PIIGS actually moved up slightly; Spain yields 1.18%, Italy 1.20% and Portugal 1.63%.

    West Texas Crude had a shockingly volatile week with moves greater than 3% on three out of the five days yet closed the week with a decline of just 64 basis points. As mentioned, gold caught a bid from the Fed news closing up 2.06% for the week. As for the dollar's weakness, the euro gained 3.08% this week, the British pound gained 1.33% and the dollar fell 1.1% against the yen.

    ETF News & Data

    GlobalX launched two funds last week, expanding its suite of dividend oriented funds with one targeting emerging markets and the other focuses on REITs.

    At the end of 2014 and into the New Year we closely followed $25 billion that flowed into the SPDR S&P 500 and then watched those assets flow right back out and discussed the possibility of window dressing. The first quarter is now winding down and the SPDR S&P 500 is again seeing very large inflows; $8 billion last week alone. We will again track this flow to see what conclusions we might be able to draw.

    Interesting Reads

    LinkedIn had an interesting article about How All 50 States Got Their Names.

    Wyoming: Derived from the Delaware (Lenape) Indian word mecheweami-ing("at/on the big plains"), which the tribe used to refer their home region in Pennsylvania (which was eventually named the Wyoming Valley [Wilkes-Barre represent!]). Other names considered for the new territory were Cheyenne, Shoshoni, Arapaho, Sioux, Platte, Big Horn, Yellowstone and Sweetwater, but Wyoming was chosen because it was already in common use by the territory's settlers.

    Sports

    If it seemed like Thursday's games in the NCAA Mens Basketball Tournament was one of the best round of 64 days ever you may be right and ESPN put together some numbers to support the idea including the fact that five games were decided by one point which coincidentally is how many games were decided by one point in the 2013 and 2014 tournaments combined.

    Source: Google Finance, Yahoo Finance, Wall Street Journal, Bloomberg, Barrons, Business Insider, ETF.com, XTF.com, Convergex,ESPN, LinkedIn

    (click to enlarge)

    Weekly ETF Flows

    For March 16, 2015 to March 20, 2015

    (click to enlarge)

    S&P Sector Analysis

    As for the sectors of the S&P 500, five outperformed the broad benchmark - Telecom, Energy, Financials, Materials and Discretionary. The remaining five - Industrials, Technology, Staples, Healthcare and Utilities - each underperformed. The dispersion between the top-performing and bottom-performing sectors was roughly 10.59% this week, with Telecom outperforming all, and Utilities coming in last.

    For March 16, 2015 to March 20, 2015

    As measured by the S&P 500 sector indices, respective performances were:

    Mar 23 1:06 PM | Link | Comment!
  • AdvisorShares Active ETF Market Share Update – Week Ending 3/13/2015

    Assets in actively managed ETFs decreased by $69 million or 0.3% to $19.084 billion. There were no new funds launched last week.

    Inflows and outflows were all generally very small. On the positive side of the ledger State Street led the way with $12 million of inflows and was the only provider with more than $1 million. Outflows were led by $16 million each from WBI and First Trust and $15 million from PowerShares.

    Category numbers were slightly more pronounced with $14 million into Bank Loans and roughly $2 million each into Multi-Asset, US Bond and Foreign Equity. Alternative Income had outflows of $29 million followed by $21 million from Alternative and $17 million from Tactical.

    Not surprisingly the small moves last week were not enough to change market share numbers.

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

    (click to enlarge)

    Number of Active ETFs by Sponsor

    Number of Active ETFs by Strategy

    There are risks involved with investing in ETFs including possible loss of money. Shares are actively managed and are subject to risk 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.
    Mar 17 6:10 PM | Link | Comment!
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.