Tag Archives: Global ETF Awards

Pimco Total Return Wins Top Capital Link Award

The best and brightest in ETF Land were honored in New York recently.

The Pimco Total Return ETF (BOND) captured the top prize at Capital Link’s annual ETF conference in New York recently. BOND won the award for Most Innovative Exchange-Traded Fund in 2012. The award was presented at the 12th annual Capital Link Closed-End Funds and Global ETFs Forum at the Metropolitan Club last month.

The awards are based on nominations by a committee of analysts and industry specialists who actively follow the products. Capital Link isn’t part of the nominating committee nor can members of the committee be candidates for the awards. Capital Link also gave out awards to the closed-end fund industry, but that doesn’t interest me.

iShares cleaned up by winning the rest of the slate. iShares and Blackrock, its parent company, won Best Shareholder Relations by an Exchange-Traded Product (ETP) Sponsor. This is award to the sponsor who practices the best financial disclosure and is proactive in shareholder communications. iShares/Blackrock also won Best Investor Relations Website in 2012.

The award for Most Innovative Index/Index-based ETF in 2012 went to iShares Morningstar Multi Asset Income Index Fund (IYLD)

Ed McRedmond, senior vice president of institutional and portfolio strategies at Invesco PowerShares, was awarded for “Contribution to the Exchange-Traded Fund Sector” for the third time. He also won in 2008 and 2009. This is given to the individual whose work contributed most to the ETF sector in the given year. McRedmond was also recognized a week earlier at the 9th Annual Global ETF Awards with an “ETP Icon of the Industry Award” for the second time. The ETP Icons of the Industry Awards recognizes individuals who have helped promote the development of the ETP marketplace.

“Investor education has always been our hallmark at Invesco PowerShares, ” said McRedmond in a written statement. “We strive to build relationships using multiple touch points to educate investors about the many beneficial ways ETFs can be used as portfolio tools. It’s truly an honor to be recognized with these awards by the many wonderful and talented people we work with each day to further the development of the ETP industry, and reflects the cumulative efforts of all my Invesco PowerShares colleagues.”

McRedmond, who joined Invesco PowerShares in 2005, works to increase the awareness and usage of ETFs by working with analysts, due-diligence groups and portfolio managers.

The analysis team at Morgan Stanley Smith Barney won the Best Research Analyst/Team for Exchange Traded Products in 2012 for the second year in a row. The team consists of Michael Jabara, David Perlman, and Stephen Minar.

Currency Hedge ETFs Win Big at Global ETF Awards

Deutsche Bank’s family of Currency Hedge ETFs won the award for the Most Innovative ETF in the Americas for 2011 at the 8th Annual Global ETF Awards. The awards are given to industry participants for outstanding achievements in the marketplace. In Europe Deutsche Bank tied with the Nomura Voltage Mid-Term Source ETF for the top prize, while the Motilal Oswal Most Shares NASDAQ-100 ETF was named most innovative in the Asia-Pacific region.

The five ETFs under the Currency Hedge banner:
db-X MSCI Brazil Currency-Hedged Equity Fund (DBBR)
db-X MSCI Canada Currency-Hedged Equity Fund (DBCN)
db-X MSCI EAFE Currency-Hedged Equity Fund (DBEF)
db-X MSCI Emerging Markets Currency-Hedged Equity Fund (DBEM)
db-X MSCI Japan Currency-Hedged Equity Fund (DBJP)

The Most Innovative Exchange Traded Product (ETP) in the Americas went to the iPath S&P 500 Dynamic VIX ETN (XVZ), while the db Physical Gold SGD Hedged ETC won in Europe.

Held at the Grand Hyatt Hotel in New York last Thursday, the Global ETF Awards provide a window on how the global ETF industry views itself. Unlike the Capital Link awards, where a small committee of analysts and industry insiders choose the winners, the Global Awards is voted on by the entire ETF industry. Here 520 organizations from around the world voted on who they think are the industry’s leaders and innovators. The awards and ceremony were created and run by the operators of exchangetradedfunds.com.

The evening began with a new prize, the Nate Most Award. Named after the man who invented the SPDR, the first ETF, it’s awarded to the individual who has made the greatest contribution to the ETF Market.

“We honored to be able to celebrate Nate’s place as the father of the ETF and to honor achievements in the ETF industry,” said Arlene C. Reyes, chief operating officer of exchangetradedfunds.com.

The first winner of this new prize was James Rose, senior managing director of State Street Global Advisors, for his commitment to the industry and for setting a standard of excellence. In addition to running State Street’s ETF business he serves as the first chairman of the Investment Company Institute’s Exchange-Traded Funds Committee.

“Nate Most created a product that created an industry and a great product for investors,” said Ross upon receiving the award.

Here is the list of other winners:

Most Innovative ETF Index Provider

The Americas – Dow Jones Indexes
Europe – STOXX
Asia-Pacific – MSCI

Most Widely Utilized ETF Research (Statistical)
Deutsche Bank won in all three regions.

Most Widely Utilized ETF Research (Analytical)
The Americas – Bloomberg
Europe – Deutsche Bank
Asia-Pacific – Deutsche Bank

Best ETF Market Maker

The Americas – Knight
Europe – Flow Traders
Asia-Pacific – Flow Traders

Most Recognized ETF Brand

The Americas – SPDRs
Europe – (Tie) db x-trackers and iShares
Asia-Pacific – China 50 ETF

Best Service Provider
The Americas – BNY Mellon
Europe – (Tie) Northern Trust and State Street Fund Services (Ireland)
Asia-Pacific – SSgA

Most Informative Website

The Americas – SPDRS.com
Europe – etf.db.com
Asia-Pacific – hkex.com.hk

Most Informative Website – Media

The Americas – IndexUniverse.com

Busy Week at Global X

It’s been a very busy week for Global X Funds. Over three consecutive days, the New York ETF sponsor launched three ETFs that track the global fishing industry, the food industry and Mexican small-cap stocks.

The Global X Food ETF (EATX) tracks the global food industry as a play on continued growth of gross domestic product in emerging market nations. With income growth giving citizens of the emerging market nations great purchasing power, this has changed the way these people procure, prepare and consume their food. In particular, they have increased their consumption of dairy goods, livestock and packaged foods.

The fund got a nice ticker, EAT with Global X’s signature consenant. And it has an interesting symbol on the Web site, a chocolate chip cookie. So basically this is a play on multinational corporations from the West being able to now sell all those skinny third-worlders the same junk food we eat.

The Global X Food ETF tracks the Solactive Global Food Index a specialty index to track the equities of global companies in the food industry. Chocolate chip maker Nestle is the biggest holding in the fund, with a 4.88% weighting. Hence, the cookie. According to Reuters, Nestle, one of the world’s largest food producers has 40% of its business in emerging markets with sales growing 12% in regions such as China, South Asia and Africa. Yogurt maker Danone is a close second with 4.85% weighting, followed by Brasil Foods, 4.81%; General Mills, 4.75%, and Kraft, 4.68%, as of April 21. More than 48% of the funds holding’s are companies in the U.S., followed by China, 8.4%; Switzerland, 8.1%; Japan, 6.7% and United Kingdom 5.4%. Not including China, emerging markets make up less than 10% of the country holdings.

“8 out of 10 people in the world live in emerging markets. We are starting to see how food companies stand to benefit as the population in emerging economies continues to increase their purchasing power,” said Bruno del Ama, Global X’s chief executive in a written statement.

The fund concept is a clever niche play on the emerging markets. However, there’s definitely a dodgy feel to profiting off of selling to the third world the food we’re discovering could be the cause of many of our health problems. It seems Global X had a similar feeling. Feeling some social responsibility, Global X Management, the fund adviser, will donate any profit it derives from EATX to Action Against Hunger | ACF International, a global humanitarian organization that works to save the lives of malnourished children while providing communities with sustainable access to safe water and long-term solutions to hunger.

Wednesday saw the launch of the Global X Fishing Industry ETF (FISN), the first ETF targeting the global fishing industry, which is comprised of two main components: commercial fishing and aquaculture. Commercial fishing companies are directly involved in the capture of fish from the wild, while aquaculture represents fish farming operations. In addition to more processed foods, citizens of the emerging markets are eating more protein, says Global X. According to the United Nations’ Food and Agriculture Organization China has seen its per-capita fish consumption grow at a dramatic rate of 5.7% per year since 1961. The FAO says an additional 27 million tons of production will be needed to maintain the present level of per-capita consumption in 2030.

The Global X Fishing Industry ETF tracks the Solactive Global Fishing Index, which holds global companies involved in the fishing industry. As of April 29, the three largest components were Cermaq, with 10.8% of the index; Marine Harvest at 10.7% and Toyo Suisan Kaisha at 9.8%. More than 35% of the index is in Norwegian companies, with 22.7% from Japan and 13% from China.

Then Thursday, the firm added to its suite of Latin American-based funds with the launch of the Global X Mexico Small-Cap ETF (MEXS), the first ETF to focus on Mexico’s small-cap companies. Many analysts think small-cap stocks are the best way to play the emerging markets because these comapanies receive the majority of their revenues from the local domestic economy. According to Morgan Stanley, in the fourth quarter of 2010, Mexico’s 4.6% economic growth rate was driven almost entirely by domestic demand. Mexican consumers have a per-capita income twice as large as Brazil’s, says Reuters, which means greater purchasing power and a strong domestic services sector. The country is expected to see economic growth of about 4% this year.

The Global X Mexico Small-Cap ETF tracks the Solactive Mexico Small-Cap Index. As of May 3, consumer discretionary was the largest sector in the index, at 29.4%. Industrials made up 22.6% and consumer staples was 20.5%.

Last month, the company launched the Global X Waste Management ETF (WSTE). The fund tracks the Solactive Global Waste Management Index, which is evenly divided among global companies that deal with the disposal of hazardous waste, non-hazardous waste and recycling.

While the entire Global X family of ETFs is extremely specialized, the funds have garnered a big enough audience to pull in $1.7 billion in assets as of March 31. And the company is getting noticed. In April, Global X tied to win America’s Most Innovative ETF Provider at the Global ETF Awards. It has also won awards from ETF Express, including Most Innovative North American ETF Provider,” “Best Emerging Markets Equity ETF Manager,” and “Best Global (ex-US) Equity ETF Manager.”

Palladium Shares Wins Most Innovative ETF Award

The ETFS Physical Palladium Shares (PALL) and ETF provider Global X Funds tied to win the award for the Americas’ Most Innovative ETF of 2010 at the 7th Annual Global ETF Awards banquet at New York’s Grand Hyatt Hotel recently.

Launched by ETF Securities in January 2010 with the ETFS Physical Platinum Shares (PPLT), the palladium and platinum funds were the first ETFs in the U.S. to provide investors with a cheap and convenient way to invest in these precious metals. The Palladium Shares track the price of palladium and are backed by palladium bullion plates and ingots and stored in vaults approved by the London Platinum Palladium Market. Because the Palladium ETF holds physical bullion it has minimal counterparty or credit risks and charges an expense ratio of 0.6%. Voters did not specify which Global X ETF deseved the award.

The Benchmark Hang Seng BeES was named the most innovative ETF in Asia. Europe’s most innovative ETFs came from db x-trackers and Source. The actual funds weren’t named.

Hosted and organized by exchangetradedfunds.com, the Global ETF Awards are like the Academy Awards for the ETF industry because only industry insiders are allowed to vote. Essentially, these industry insiders are asked grade their competitors to pick which denizens of ETF Land have done the best job over the past year.

The Most Innovative Exchange-Traded Product, not an ETF, in the Americas went to Barclays ETN + S&P Veqtor ETN (VQT). This exchange-traded note tracks the S&P 500 Dynamic Veqtor Total Return Index. It offers a strategy of “broad equity market exposure with an implied volatility hedge by dynamically allocating its notional investments among three components: equity, volatility and cash. The equity component is represented by the S&P 500 Total Return Index and the volatility component is represented by the S&P 500 VIX Short-Term Futures Index.” ETF Securities won in Europe for an unnamed product.

Once again, SPDRs was named the Most Recognized ETF Brand in the Americas beating out iShares, Vanguard and PowerShares. IShares shared the title with db x-trackers in Europe, while Asia’s best known brand is China 50 ETF.

“Every year this becomes more meaningful because the industry becomes more competitive every year,” said the SPDR representative.

S&P Indices won Most Innovative ETF Index Provider in the Americas, with STOXX the European winner and China Securities Index taking Asia’s prize.

IndexUniverse.com, where I am a contributing writer, was named the Americas Most Informative ETF Website, with etf.db.com and hkex.com.hk the winners in Europe and Asia, respectively.

Deborah Fuhr of BlackRock held onto her crown as the leading ETF analyst winning both Most Widely Utilized ETF Statistical Research and Most Widely Utilized Analytical Research in Europe. The latter award she was tied with Deutsche Bank, which also took both prizes in the Americas and Asia’s analytical award. Daiwa Asset Management won Asia’s statistical research award.

Other prize winners:

Best ETF Market Maker: Knight (Americas), FlowTraders (Europe), UBS Securities (Asia)

Most Proactive Exchange: NYSE Euronext (Americas), Deutsche Borse (Europe), Shanghai Stock Exchange (Asia).

Most Proactive Exchange for ETF Derivatives: International Securities Exchange (Americas), Eurex (Europe), Hong Kong Stock Exchange (Asia).

Best Service Provider: BNY Mellon (Americas), Bank of Ireland (Europe), SSgA (Asia).

PowerShares/Van Eck Tie for Most Innovative U.S. ETF

Invesco PowerShares and Van Eck’s Market Vectors shared the 2008 award for the Most Innovative ETF the Americas at the 5th annual Global ETF Awards recently. Daiwa FTSE Sharia Japan 100 won Most Innovative ETF in Asia, while db x-trackers and Lyxor Asset Management tied in Europe.

The actual ETFs weren’t listed, as voters aren’t required to mention the fund’s name, just the firm’s. It’s probably just as well. I surmise that PowerShares won for producing the first family of active ETFs in the U.S. rather than any particular fund. PowerShares’ Active Alpha Multi Cap Fund (PQZ), Active AlphaQ Fund (PQY), Active Low Duration Fund (PLK) and the Active Mega-Cap Fund (PMA) were all launched on April 11, 2008. Does any one fund stand out as more innovative than the others? I don’t think so. I suggest they won more for bringing the active concept to the U.S. market.

PowerShares actually didn’t launch the first active ETF. It had been in a race to come out with the first active ETF, but lost to Bear Stearns by just a matter of weeks. However, when Bear Stearns died, so did its active fund, leaving PowerShares with the first viable active ETFs in the U.S.

Meanwhile, Market Vectors launched five ETFs last year. If I had to guess, I would say they won for their funds covering frontier markets, Africa Index ETF (AFK) and Gulf States Index ETF (MES).

The SPDRs brand of ETFs from State Street Global Advisors again won Most Recognized ETF Brand in the Americas. This is probably due to the fact that the SPDR (SPY) was the first ETF and is the largest and most liquid ETF on the U.S. market. But I’m sure a lot of this has to do with the ad campaign for Select Sector SPDRs.

These commercials, which run often on CNBC, show spiders building webs in the industry-signifying shapes such as an oil derrick for the Energy Select Sector SPDR (XLE), a hard hat for the Materials Select Sector SPDR (XLB) or light bulb for Utilities Select Sector SPDR (XLU). The ad makes a really good connection between the name SPDR and that fact that these are funds to invest in. SPDR also surprised many people by winning Most Informative Website, SPDRS.com. The site is a big advancement over the previous incarnation and much easier to use.

The Global ETF Awards are like the Oscars of the ETF industry. They are unique on Wall Street, because as far as I know these are the only awards in which an industry is invited to vote on itself. This makes winning extremely special because it’s your competitors who say you’ve done a good job, rather than a few individuals.

Some people who read my previous note about the awards seemed to think the conference and awards deal only with the international market. That’s not right. As I clearly stated previously, it’s the only conference that deals with BOTH U.S. AND INTERNATIONAL issues. Nearly every company in the U.S. ETF industry attended and many had representatives speaking on panels. However, unlike other ETF conference I’ve attended, which are completely focused on the U.S., this conference also addresses issues affecting ETF providers outside the U.S.

It was a great opportunity to network with not just State Street, Bank of New York Mellon, ProShares, PowerShares and Barclays, to name a few, but also representatives from the Bank of Ireland, France’s Lyxor, the London Stock Exchange and China Asset Management.

The conference and awards dinner are presented by ExchangeTradedFunds.com and were held at the Grand Hyatt Hotel in New York City.

For the complete list of winners go to ExchangeTradedFunds.com.

You’re Invited to the Global ETF Awards

The Global ETF Awards Conference will be held next Thursday, April 30, in New York City at the Grand Hyatt Hotel. It’s sponsored by ExchangeTradedFunds.com.

I encourage all of you to attend this event. It’s the only conference that deals with U.S. and international issues in the ETF industry. This year it will concentrate on how regulatory changes will affect the industry. Because this conference receives the most attendees from Europe and Asia, it’s a great place to meet all the big players and firms in the industry.

It’s also easy to fit into your schedule. It runs only one day. The conference consists of a half day of workshops then the Awards dinner afterwards.

Some of this year’s workshops include:
· How and when to use leveraged ETFs and ETF Options
· Global ETF, ETN and ETC Product Developments-new ideas and trends
· Markets in crises-the impact on indices

Finally, the awards ceremony is unique on Wall Street in that the awards are not given by an outside body, but much like the film industry’s Academy Awards, the ETF industry votes on itself. So, this is a chance to see what the guys who run the ETF industry think are the most innovative products in the space right now.

I have attended the last two years. It’s very informative and a lot of fun, I encourage you all to go.