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ETF Stats For February 2015 – Actively Managed Assets Jump 10%

The ETF industry roared back in February after beginning the year with a negative start in January . Twenty-two new products came to market during the month and seven shuttered operations. Assets jumped 5.3% to $2.1 trillion, which by our calculations allowed month-end assets to close above the $2 trillion mark for the first time. Readers should note that we exclude fund-of-fund assets in our calculations to avoid double counting. As such, our year-end 2014 data put assets just a sliver short of that threshold. February’s net addition of 15 active listings brought the year-to-date count back into positive territory at plus five. The month’s launches were heavily skewed with 21 ETFs and just one ETN coming to market. Additionally, six of the seven closures were ETNs, putting month-end listings at 1,667 consisting of 1,462 ETFs and 205 ETNs. Actively managed ETFs saw four additions and one closure. Their count now stands at 123, which is a decline of two for the year. However, actively managed assets surged 10.6% for the month, are up 13.0% year-to date, and now total $19.5 billion. ETFs with more than $10 billion of assets increased by two and now number 49. Although they represent less than 3% of products, they hold more than 58% of industry assets. Products with $1 billion or more in assets increased by nine to 259 and have a better than 89% market share. The smallest 830 products (nearly half) account for just 1% of assets. Trading activity plunged more than 28% with just $1.3 trillion worth of ETFs and ETNs changing hands. There were only 19 trading days in the month, which only partially accounts for the decline. The quantity of products averaging more than $1 billion a day in trading activity dropped from twelve to eight, yet they still accounted for 48.7% of industry dollar volume. February 2015 Month End ETFs ETNs Total Currently Listed U.S. 1,462 205 1,667 Listed as of 12/31/2014 1,451 211 1,662 New Introductions for Month 21 1 22 Delistings/Closures for Month 1 6 7 Net Change for Month +20 -5 +15 New Introductions 6 Months 98 6 104 New Introductions YTD 34 1 35 Delistings/Closures YTD 23 7 30 Net Change YTD +11 -6 +5 Assets Under Mgmt ($ billion) $2,058 $27.6 $2,085 % Change in Assets for Month +5.3% +5.4% +5.3% % Change in Assets YTD +4.3% +2.7% +4.3% Qty AUM > $10 Billion 49 0 49 Qty AUM > $1 Billion 254 5 259 Qty AUM > $100 Million 765 39 804 % with AUM > $100 Million 52.4% 19.5% 48.2% Monthly $ Volume ($ billion) $1,282 $50.2 $1,333 % Change in Monthly $ Volume -28.6% -28.2% -28.6% Avg Daily $ Volume > $1 Billion 7 1 8 Avg Daily $ Volume > $100 Million 80 3 83 Avg Daily $ Volume > $10 Million 296 12 308 Actively Managed ETF Count (w/ change) 123 +3 mth -2 ytd Actively Managed AUM ($ billion) $19.5 +10.6% mth +13.0% ytd Data sources: Daily prices and volume of individual ETPs from Norgate Premium Data. Fund counts and all other information compiled by Invest With An Edge. New products launched in February (sorted by launch date): RevenueShares Global Growth Fund (NYSEARCA: RGRO ) , launched 2/2/15, holds about 100 securities based on two main selection criteria. First, 5 developed and 5 emerging countries will be chosen by selecting those with the highest percentage growth of their year over year GDP from the prior 2 quarters, with each country getting a 10% weighting. Second, the top 10 revenue-producing companies in each country are weighted by revenue, but they are limited to a 5% portfolio allocation. The expense ratio will be capped at 0.70% until 11/25/15 ( RGRO overview ). ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN (NYSEARCA: SMHD ) , launched 2/4/15, is an exchange-traded note that provides 2x (200%) leveraged exposure (reset monthly) to an index of small-cap stocks having dividend yields that are relatively high compared to other small-cap stocks in the U.S. market. The ETN pays a variable monthly coupon linked to two times the cash distributions paid by index constituents. SMHD has an estimated yield of 16.8% and sports an expense ratio of 0.85% ( SMHD overview ). Fidelity MSCI Real Estate Index ETF (NYSEARCA: FREL ) , launched 2/5/15, is designed to represent the performance of the real estate sector in the U.S. equity market. The fund will not hold all of the positions in the underlying index, MSCI USA IMI Real Estate Index, but will instead select a representative sample of securities that collectively has an investment profile similar to the index. Investors will pay 0.12% annually to own this fund ( FREL overview ). ProShares Russell 2000 Dividend Growers ETF (NYSEARCA: SMDV ) , launched 2/5/15, invests in the companies of the Russell 2000 Index with at least 10 consecutive years of dividend growth. The fund will hold a minimum of 40 stocks equally weighted, and right now it holds 55. The top sectors represented in the fund are Financials and Utilities, each at about 23%. SMDV has an estimated yield of 2.4% and expects to pay dividends quarterly. The fund’s expense ratio will be capped at 0.40% until 9/30/16 ( SMDV overview ). ProShares S&P MidCap 400 Dividend Aristocrats ETF (NYSEARCA: REGL ) , launched 2/5/15, will invest in the companies of the S&P 400 MidCap Index that have at least 15 consecutive years of dividend growth. The fund will hold a minimum of 40 stocks equally weighted, and right now it holds 47. Financials leads the sector lineup at nearly 30%, and the next closest is Materials at 17%. The estimated yield for REGL is 1.8%. The fund’s expense ratio will be capped at 0.40% until 9/30/16 ( REGL overview ). SPDR S&P 500 Buyback ETF (NYSEARCA: SPYB ) , launched 2/5/15, provides exposure to companies in the S&P 500 that have high buyback ratios compared to other stocks. The fund may either hold all of the positions in the underlying index, S&P 500 Buyback Index, or it could instead select a representative sample of securities that collectively has the same risk and return characteristics of the Index. The Index provides exposure to the 100 companies in the S&P 500 that have the highest buyback ratio in the last 12 months, and currently the fund holds 101 positions. The fund sports a 0.35% expense ratio ( SPYB overview ). Guggenheim S&P High Income Infrastructure ETF (NYSEARCA: GHII ) , launched 2/11/15, invests in 50 high-yielding securities of companies in developed markets that engage in various infrastructure-related industries. Sector representations in the fund include Utilities 50.2%, Industrials 33.2%, and Energy 16.7%. Investors will pay 0.45% annually to own this fund ( GHII overview ). KraneShares FTSE Emerging Markets Plus ETF (BATS: KEMP ) , launched 2/13/15, invests in large- and mid-cap companies in emerging market countries and weights the country allocations by gross domestic product. As of the end of 2014, the largest markets represented were China (43.5%), India (17.7%), Brazil (5.2%), Mexico (4.5%), and Russia (3.9%). The fund’s largest holding at 17.5% is KraneShares Bosera MSCI China A ETF (NYSEARCA: KBA ), and it has a 0.68% expense ratio ( KEMP overview ). ProShares Ultra Gold Miners (NYSEARCA: GDXX ) , launched 2/13/15, seeks a daily return that is 2x (200%) the daily performance of an index made up of publicly traded companies involved in gold and silver mining. Companies whose revenues lean toward silver mining are limited to 20% of the holdings. Canada has the largest geographic allocation at 60%. The expense ratio will be capped at 1.11% until 9/30/16 ( GDXX overview ). ProShares Ultra Junior Miners (NYSEARCA: GDJJ ) , launched 2/13/15, seeks a return that is 2x (200%) the daily performance of an index made up of micro- and small-cap companies involved in gold and silver mining that generate at least 50% of their revenues from those activities. Companies whose revenues lean toward silver mining are limited to 20% of the holdings. Canada takes top billing in the geographic allocation at 64%. The expense ratio will be capped at 1.12% until 9/30/16 ( GDJJ overview ). ProShares UltraShort Gold Miners (NYSEARCA: GDXS ) , launched 2/13/15, seeks a daily return that is 2x inverse (-200%) the daily performance of the same index underlying GDXX. The expense ratio will be capped at 0.95% until 9/30/16 ( GDXS overview ). ProShares UltraShort Junior Miners (NYSEARCA: GDJS ) , launched 2/13/15, seeks a daily return that is 2x inverse (-200%) the daily performance of the same index underlying GDJJ. The expense ratio will be capped at 0.95% until 9/30/16 ( GDJS overview ). AdvisorShares Pacific Asset Enhanced Floating Rate ETF (NYSEARCA: FLTR ) , launched 2/19/15, is an actively managed ETF designed to produce a high level of current income. The ETF invests in senior secured and unsecured floating rate loans, secured second lien floating rate loans, and other floating rate debt securities of domestic and foreign issuers. The portfolio manager can choose to invest as little as 80% of the fund or can leverage the portfolio up to 130%. Although the fund is focused on income, an estimated yield is not currently provided on the fund’s website. The expense ratio will be capped at 1.10% until at least 2/13/16 ( FLTR overview ). Sit Rising Rate ETF (NYSEARCA: RISE ) , launched 2/19/15, has an objective to profit from rising interest rates by using futures contracts and options on futures on 2-, 5-, and 10-year U.S. Treasury securities. The underlying index targets a negative 10 year duration, making it an inverse bond fund. The weighting of the instruments are expected to be from 30% to 70% for the shorter duration securities and 5% to 25% for those with 10 year maturities. RISE will issue K-1 tax reports instead of the easier to use 1099. It has an expense ratio of 1.64% based on the breakeven analysis in the prospectus ( RISE overview ). Greenhaven Coal Fund (NYSEARCA: TONS ) , launched 2/20/15, is designed to track the daily price movements of coal futures. The fund will hold an equal number of futures contracts in each of the three months making up the closest calendar quarter. The positions will be rolled over to the next calendar quarter four times a year. TONS will issue K-1 tax reports instead of the more investor friendly 1099. Based on the breakeven analysis in the prospectus, the expense ratio will be 1.23% ( TONS overview ). SPDR DoubleLine Total Return Tactical ETF (NYSEARCA: TOTL ) , launched 2/24/15, is an actively managed income fund designed to provide investors with maximum total return. The fund’s manager, Jeffrey Gundlach, invests in fixed income securities of any credit quality and may include mortgage-backed securities, high yield securities, foreign-denominated instruments, and securities tied to emerging market countries. TOTL characteristics include a current yield of 4.8% and a duration of 3.1 years. The fund’s expense ratio will be capped at 0.55% until 10/31/16 ( TOTL overview ). Tuttle Tactical Management U.S. Core ETF (NASDAQ: TUTT ) , launched 2/25/15, is an actively managed fund-of-funds seeking to deliver relative returns during market uptrends and capital preservation during market downtrends. The fund will combine multiple, uncorrelated tactical strategies. The top two holdings are iShares 7-10 Year Treasury Bond (NYSEARCA: IEF ) at 26.6% and Pimco Enhanced Short Maturity (NYSEARCA: MINT ) at 20.0%. TUTT sports a 1.34% expense ratio ( TUTT overview ). iShares U.S. Fixed Income Balanced Risk ETF (BATS: INC ) , launched 2/26/15, is an actively managed ETF investing in U.S. dollar denominated investment-grade and high-yield fixed-income securities. The portfolio will be designed so that, in the aggregate, the fund’s exposure to credit spread risk and interest rate risk should be equal. In order to achieve the balanced goal, the fund may take short or long positions in U.S. Treasury futures. The fund is currently leveraged with a 25% short position in cash and/or derivatives. The expense ratio will be capped at 0.25% until 2/29/16 ( INC overview ). Lattice Developed Markets (ex-US) Strategy ETF (NYSEARCA: RODM ) , launched 2/26/15, invests in a broad range of companies showing favorable valuation, momentum, and quality characteristics that are located in major developed markets of Europe, Canada, and the Pacific Region. There are currently about 340 holdings. Japan leads the country allocation at 18.6%, and the U.K. follows with 13.7%. Investors will pay 0.50% annually to own this fund ( RODM overview ). Lattice Emerging Markets Strategy ETF (NYSEARCA: ROAM ) , launched 2/26/15, strives to balance risk across emerging market countries, currencies, and companies. It will provide increased exposure to smaller, more locally driven emerging economies and enterprises that have encouraging valuation, momentum, and quality characteristics. ROAM sports a 0.65% expense ratio ( ROAM overview ). Lattice U.S. Equity Strategy ETF (NYSEARCA: ROUS ) , launched 2/26/15, will invest in large-cap U.S. equities that have solid valuation, momentum, and quality characteristics. Financials leads the sector allocation at 19.2%, and Information Technology comes in second at 16.1%. ROUS has an expense ratio of 0.35% ( ROUS overview ). Arrow QVM Equity Factor ETF (NYSEARCA: QVM ) , launched 2/27/15, consists of 50 equally weighted domestic equities selected based on a combined ranking score of their quality, value, and momentum characteristics. To be considered, stocks must have daily dollar volume above $1 million for the last three months and at least a $5 share price. The portfolio is constructed at the end of January and July and is rebalanced quarterly to maintain equal weighting. The expense ratio will be capped at 0.65% until 5/31/16 ( QVM overview ). Product closures/delistings in February : WisdomTree Euro Debt (NYSEARCA: EU ) PowerShares DB 3x Italian T-Bond Futures ETN (NYSEARCA: ITLT ) PowerShares DB 3x Long USD Index Futures ETN (NYSEARCA: UUPT ) PowerShares DB 3x Short USD Index Futures ETN (NYSEARCA: UDNT ) PowerShares DB Italian T-Bond Futures ETN (NYSEARCA: ITLY ) PowerShares DB US Deflation ETN (NYSEARCA: DEFL ) PowerShares DB US Inflation ETN (NYSEARCA: INFL ) iShares moved its four allocation ETFs to its Core lineup effective February 2. Deutsche Bank and Invesco ended their agreement to market DB issued ETNs under the PowerShares brand. The 26 ETNs were renamed effective 2/24/15. The role of “managing owner” for 11 PowerShares DB ETFs transferred from Deutsche Bank to Invesco effective 2/25/15 resulting in the temporary suspension of creation units on the affected funds. Creations were resumed by the following day. The only disruption we noted was PowerShares DB Oil Fund (NYSEARCA: DBO ) traded with about a 3.5% premium for a few hours the morning of 2/25/15. Previous monthly ETF statistics reports are available here . Disclosure covering writer, editor, publisher, and affiliates: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.

Get Him To The GREK

The Global X FTSE Greece 20 ETF is a great way to leverage a favorable resolution between Greece and the euro-zone. The GREK is far off its 52-week high of $25.76, largely due to the political developments that have led investors to speculate about Greece leaving the euro-zone. The security is up from its low of $10.44 recently because of an increasing understanding that a favorable resolution is likely. Opportunity exists for near-immediate appreciation on the announcement of a favorable resolution as early as next week. Over the course of this year, the GREK ETF should gain further as it reflects the benefits of ECB actions like Greece’s peer markets have. Investors interested in leveraging the prospect of a favorable Greece resolution, but hoping to limit risk to any one individual Greek security, can look to the Global X FTSE Greece 20 ETF (NYSEARCA: GREK ). The security has come off its highs on fear that Greece could leave the euro-zone. Though it has also come off its lows on the prospect of a favorable resolution, it still has a way to go higher because of the ongoing absence of that event. I think investors can buy it here for immediate upside to $15 on a quick fix and longer-term gain to $17 to $20 this year. 5-Year Chart of GREK at Seeking Alpha As you can see here in the long-term chart of the Global X FTSE Greece 20 ETF, it has recently fallen precipitously. The reason for the decline should be obvious to anyone who has not been on a deserted island for the last couple months, save for a Greek island. When the popular Syriza party was elected into power in Greece, and before that when the polls showed it could be, Greek securities started to sell off. That was because of the tough talk against austerity that emanated from the party and its leaders. Fear rose that Greece could leave the euro-zone or be ejected from it due to the change in political power. But as time has passed, investors have become aware of what I already knew. Tough-talking Greek leaders do not have the backing of the Greek people to leave the euro-zone, as polls show a great majority of Greeks would vote against it in a referendum. That was known even before the elections, and Syriza indicated it was not interested in leaving the euro-zone, ensuring its election. However, Syriza still wanted an alteration to the bailout deals Greece had previously agreed to, due to the great damage austerity has done to many Greeks. The medicine while beneficial for the long-term economy was administered too much too soon and it made a good deal of Greeks sick, if not, unemployed. Over recent weeks, the emergence of a somewhat free-speaking Finance Minister, and Greek Defense Minister’s demands for Nazi war reparations have only stirred up more concern among the global investment community. Greek demands were met with tough talk from the Germans and other EU partners, so it got scary for some investors, who then bid the GREK security down to $10 and change. When the fear was palpable, I went long National Bank of Greece (NYSE: NBG ) at approximately $1 using long-term call options. Thanks for telling us now Greek , is what you are saying, but for your information, I just went long GREK Friday and it’s not too late still. I never had concern about the future of Greece, and was long GREK a few months ago at around $17. If Greece agrees to continued currency relations with its euro-zone partners, however altered the structure of the deal could be, much fear currently priced into the security must go away. Greece said today it will do whatever it can to reach a deal to keep it in the euro-zone; it has until February 28, but there is talk that a deal could be consummated as early as Monday. And it is in Germany’s interest to keep Greece in the euro-zone, because the presence of weak partners limits the upside of the euro, which serves Germany’s exports. 1-Month Chart of GREK GREK currently trades at approximately $13.63, after rising about 5% Friday. It was up Thursday too, and as you can see here, it has come off its low of $10.44. But GREK has upside from here, because before Syriza was elected, the security traded upward of $15, and before it was a concern altogether, it traded even higher with a 52-week high of $25.76. Now some of the security’s decline has been due to the general weakness of the European economy and that of Greece over the last 12 months, but Greek stocks should be benefiting year to date from the actions of the ECB, like its peers are. The iShares Europe ETF (NYSEARCA: IEV ) is up 4.8% year to date while GREK is down 5.5%. The Global X FTSE Portugal 20 ETF (NYSEARCA: PGAL ) is up 2.2%; the iShares MSCI Spain Capped ETF (NYSEARCA: EWP ) is only down 2.8% year to date because of Greece and Spain’s own similar political issues. Thus, given European shares seem to be finding bids here, there appears to be room to grow for GREK beyond just the immediate gain that should occur once it is clear Greece will remain in the euro-zone. I’m not anticipating a quick recovery to the 52-week high, but an immediate move to above $15 on a positive resolution seems likely to me. From there, I see no reason why the security that marks the Greek market cannot approach $16 in short time and $17 to $20 before year-end. So I say, get him to the GREK. I have been following these Greek developments, so interested parties may find value in following my column . Disclosure: The author is long GREK, NBG. (More…) The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

Policy Easing Puts China ETFs In Focus

Bad economic news continue to flow out of China, with the GDP growth rate falling to 24-year low in 2014, credit crunch concerns, a property market slump, persistently lagging manufacturing sector which contracted for the first time in two years in January 2015. Faltering demand from key export markets like Europe adds to the worries. The issues that plagued the economy in 2012 have actually resurfaced since the start of 2014. To lift the cloud over the economy, the People’s Bank of China (PBOC) surprised the global markets on February 4 with a cut in reserves requirement ratio (RRR) by 50 bps. The latest cut was the first comprehensive one in the Chinese economy after May 2012. Moreover, to boost smaller companies, the PBOC announced an additional RRR cut of 0.5 percentage point for city commercial banks and rural banks. Agricultural Development Bank of China receives a further reduction of 4 percentage points. Australia & New Zealand Banking Group Ltd. economists expect the step to add about 600 billion yuan ($96 billion) to the Chinese banking system. Prior to this, in November, PBOC had slashed one-year lending rate, for the first time in more than two years, by 40 bps to 5.6% and the deposit rate by 25 bps to 2.75%. The PBOC also gave Chinese banks more flexibility in setting the interest rates on deposits in November. Last year, China also took some easing measures including a mini-stimulus package mainly targeted at railways and other construction investment and a tax relief for small enterprises. Moreover, China slashed the RRR for rural banks and focused on innovative rural financial products hinting at the transition to domestic growth from exports. However, all its policy measures were small in scale then and appear not to have contributed significantly to the GDP picture so far. Market Reaction Several market participants expect a few more RRR and interest rate cuts this year with more evidence testifying to the fact that Chinese growth will take time to pick up due to global growth concerns. After all, solid monetary easing becomes essential for China given the sagging inflation which fell to five-year low in November. The sudden move by the People’s Bank of China, which echoes the easy policy era in China in the coming days, offered modest gains in the Chinese stocks. Several Asian markets have benefitted from this decision. In the large cap sphere, the iShares China Large-Cap ETF (NYSEARCA: FXI ) , the iShares MSCI China ETF (NYSEARCA: MCHI ) and the SPDR S&P China ETF (NYSEARCA: GXC ) all added about 1% in the key trading session. The more local China A-Shares ETFs the Deutsche X-trackers Harvest CSI 300 China A-Shares ETF (NYSEARCA: ASHR ) , the Market Vectors ChinaAMC A-Share ETF (NYSEARCA: PEK ) and the PowerShares China A-Share Portfolio ETF (NYSEARCA: CHNA ) have tacked on better gains in the range of 1% to 2.4%. Turnaround Possible in New Year? Those hoping for a turnaround might look forward to the Chinese New Year in late February this year against last year’s late January. This should boost Chinese spending, especially with the greater availability of cash following the latest rate cut. However, over the long run, the situation might moderate. We would like to take a wait and see approach for the broader China ETFs space given a sluggish global economy, though the U.S. demand looks strong. There are a number of headwinds still facing the Chinese economy, including shadow-banking activities and money laundering from mainland China to other peripheral destinations like Macau. A group of economists believe that the government’s excessive focus on anti-corruption activities may in fact hold back GDP growth. Whatever the case, we expect a host of small easing measures now and then from the PBOC as we progress along the year and as the economy comes up with downbeat readings. And whenever this happens, the market should warm up. Chinese equity ETFs are undervalued at the current level with the biggest ETF FXI trading at a P/E (ttm) multiple of 10 against the broader emerging market ETF, the iShares MSCI Emerging Markets ETF (NYSEARCA: EEM ) P/E (ttm) multiple of 12. So investors might have a short-term bet on the aforementioned ETFs to cash in on twin opportunities – the RRR cut and the other New Year spending spree.