Strong start to the year for ETFs globally
S&P Indices saw a sharp rise in its ETF licensing activity during the first quarter of 2012, as 41 ETFs based on its indices were launched globally during the first three months of the year. The 41 ETFs launched during the first quarter represents more than half of the total number of S&P index-based ETFs launched for all of 2011. S&P Indices attributes the growth in ETF issuance to a maturing European and Asia-Pacific ETF market.
“Investor interest in ETFs, especially outside of the States, is rapidly increasing as these products are providing greater access to niche market segments and varying asset classes at fractions of the cost typically associated with actively managed products such as mutual funds – once the primary option available to invest in broad baskets of securities,” says Alexander Matturri, executive managing director at S&P Indices. “Our ETF business is becoming more international and we are well placed to offer product providers with an ever more varied set of indices to meet the growing and evolving needs of their clients.”
The growth in S&P based ETF issuance was lead by S&P Indices’ international business, as 23 ETFs were launched in Europe during the first quarter. In addition, nine ETFs were issued by product providers in Asia-Pacific and one in Canada during the first three months of 2012.
Lyxor, PowerShares and Mirae Asset Management were among the top providers launching S&P index-based ETFs in the first quarter. Ten of the first quarter ETF launches provided varying access to the international commodities markets, while 27 targeted various equity asset classes.
Also announced by S&P Indices during the first quarter, but separate from these results, is a landmark licensing agreement with Bovespa, the largest equity and futures exchange in Latin America, for the listing of S&P 500 Index futures to be settled in Brazilian real. In addition, S&P Indices expanded its suite of low volatility indices in the first quarter leading to licensing agreements with PowerShares for potential exchange traded products based upon these widely followed indices.
“Product providers and issuers are choosing S&P Indices for the power of our brand, longevity of our business and knowledge of our trade,” continues Mr. Matturri. “They rest comfortably at night knowing that 90+ years of indexing expertise and innovation is underlying their products.”
The following nine ETFs were issued in Asia-Pacific in Q1 2012:
|Mirae||Hong Kong||Mirae Asset TIGER S&P Asia ex JANZ Energy ETF|
|Mirae||Hong Kong||Mirae Asset TIGER S&P Asia ex JANZ IT ETF|
|Mirae||Hong Kong||Mirae Asset TIGER S&P Emerging Asia Consumer ETF|
|Mirae||Hong Kong||Mirae Asset TIGER S&P Global Consumer Brands ETF|
|Mirae||Hong Kong||Mirae Asset TIGER S&P Asia ex JANZ Financials ETF|
|Mirae||Hong Kong||Mirae Asset TIGER S&P Asia ex JANZ Industrials ETF|
|Mirae||Hong Kong||Mirae Asset TIGER S&P Asia ex JANZ Materials ETF|
|XIE Shares||Hong Kong||XIE Shares India S&P CNX Nifty ETF|
|CIMB-Principal Asset Management||Singapore||CIMB S&P Ethical Asia Pacific Dividend ETF|