Tag Archives: GDXJ

Down 50% in 2 Days, TVIX Could Fall More Monday

After the VelocityShares Daily 2x Long VIX Short-Term ETN (TVIX) plunged 30% in Thursday, Credit Suisse, the sponsor of the controversial fund, reopened share issuance on a “limited basis.” The ETF proceed to fall again Friday for a 50% drop over two days.

The Swiss banking giant was blamed for the two-day decline, by Benzinga, because it had temporarily halting new issuance of TVIX shares last month.

“Beginning March 23, 2012, Credit Suisse may from time to time issue the ETNs into inventory of its affiliates to make the ETNs available for lending at or about rates that prevailed prior to the temporary suspension of issuances of the ETNs. Also, beginning as soon as March 28, 2012, Credit Suisse may issue additional ETNs from time to time to be sold solely to authorized market makers,” according to a written statement issued by the bank after Thursday’s close.

Benzinga says “the halt in TVIX share creations may have caused a massive spike in the ETN’s net asset value. The elevated NAV and ensuing plunge in TVIX indicates that, simply put, traders discovered said premium and exploited it.”

TVIX’s slide continued in after-hours trading where the ETN lost almost another 12% and was found at $9 at 8:30PM Eastern Time. That’s by far the the lowest price TVIX has ever traded at.

On Friday, the shares fell 30% to $7.16 on volume of 29.3 million shares, more than twice its daily average volume. That’s 62% of the 46.7 million shares outstanding. And with the shares still 7% above their indicative value of $6.70, according to VelocityShares, the ETN could see another decline on Monday.

ETF Reading List:

China’s PMI Data Could Hinder, Help These ETFs (HAO, FXI, MCHI) (Benzinga)

Happy Water Day? Maybe For Water ETFs (PIO, PHO, CGW) (Benzinga)

Yorkville High Income MLP ETF’s Yield 8.5% On Average (Investors.com)

Seriously? Credit Suisse to Allow New TVIX Creations (TVIX, CS) (Benzinga)

Avoid These ETFs For Now (FXI, TVIX, GDXJ) (Benzinga)

Van Eck Wins Most Innovative at Global Awards

Van Eck Global’s ETF family, the Market Vectors, won the Americas award for Most Innovative ETF at the 6th Annual Global ETF Awards. It was the second year that the ETF industry chose Market Vectors for most original new fund. Last year, it shared the award with PowerShares Invesco, but this year it alone received the most votes. IndexIQ and ProShares tied for second place, while ETF Securities, ProShares and Pimco tied for third.

Unfortunately, voters don’t need to specify which fund they feel is most innovative, just the sponsoring house. So, we are left to guess which fund was most innovative. I think a nice change for next year would be for voters to specify which fund should win the award.

Last year, Market Vectors released:

Brazil Small-Cap ETF (BRF)
Indonesia Index ETF (IDX)
Junior Gold Miners ETF (GDXJ)
Poland ETF (PLND)
Vietnam ETF (VNM)
Pre-Refunded Municipal Bond ETF (PRB)
High-Yield Municipal Bond ETF (HYD)

While there’s no indication which the industry found most innovative, the Junior Gold Miners and Brazil Small-Cap ETFs gathered the most assets last year.

In 2008, when Market Vectors tied for first, it released the Double Short Euro exchange-traded note (DRR). This has proven very popular in the last week, posting an average daily volume of 300,000 shares vs. the previous average of just 40,000 a day.

Hedge Fund ETF and Deutche Bank’s db x-trackers won Most Innovative ETF for Europe and S&P CNP500 Fund took top prize in Asia. Deutsche Bank won Most Useful ETF Research for both statistical and analytical in the Americas. BlackRock’s Deborah Fuhr, one of the industry’s leading analysts, won both research awards for Europe.

The Global Awards, run by exchangetradedfunds.com, are the Oscars of the ETF industry because as its slogan says it’s “How the industry measures excellence.” Like the Oscars in which only actors are allowed to vote for Best Actor and only directors are allowed to vote for Best Director, only ETF industry insiders are allowed to vote for the Global Awards. So, when your competitors vote for your fund over their own, you know you’ve done something special. The Capital Link awards, comparatively, are chosen by 14 industry analysts.

While Europe, Asia and the Americas win an award in each category, I’m just focusing on the Americas.

Most Recognized Brand went to both iShares and SPDR. In recent years, SPDR monopolized the award due to its TV ad campaign with animated spiders making webs in the shape of industrial icons. It clearly affixed the SPDR brand with investments. iShares, the ETF market leader, fought back this year with a campaign to that instilled in investors minds iShares as a good way to invest. SPDRS.com won Most Informative ETF Website, with ishares.com coming in second.

Other awards

Most Innovative ETF Hybrid Product — iPath S&P 500 VIX Short-Term Futures ETN (VXX) This one has also been very popular recently.

The ETF that raised the most assets in 2009 — iShares MSCI Emerging Markets Index Fund (EEM)

The ETF that raised the most assets in 2009 — Direxion Daily Emerging Markets Bull 3x Shares (EDC).

The most liquid ETF (based upon daily USD turnover)– SPDR S&P 500 (SPY)

The Exchange that has the largest number of Primary ETF listed products — NYSE Arca

For the full awards list go to exchangetradedfunds.com click on Winners-6th Annual Global ETF Awards.