Deutsche Bank Markets Research Europe Synthetic Equity & Index Strategy European Monthly ETF Market Review Date 10 December 2015 Strong Equity Inflows where Foreign Equities Benefit Data in this report is as of 30th November 2015 ________________________________________________________________________________________________________________ Deutsche Bank AG/London Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. DISCLOSURES AND ANALYST CERTIFICATIONS ARE LOCATED IN APPENDIX 1.MCI (P) 124/04/2015. Author Ari Rajendra Strategist (+44) 20 754-52282 [email protected]Team Contacts Shan Lan Strategist (+852) 22036716 [email protected]Sebastian Mercado Strategist (+1) 212 250-8690 [email protected]European ETP Highlights As of the end of November 2015, Global ETPs assets stood at $2.9 trillion with European ETP assets at $505bn (€478bn). European ETPs continued its positive trend and ended the month with net inflows of +€3.1bn in November (+€6.2bn in the prev. month and +€65bn YTD). Equity ETFs led the charge with notable inflows of +€2.5bn followed by Fixed Income ETFs (+€0.5bn) and Commodity ETPs (+€0.2bn). Global ETPs flows totalled +$25.7bn for November taking YTD total to over +$300bn. This was led by US ETPs recording +$26bn in monthly inflows with YTD flows nearing +$200bn. November saw significant number of new launches and 2 new providers During November, European ETP market welcomed 48 new launches and 2 new Providers (BMO Global Asset Management and Sun Global Investments). The majority of the new launches were by ETF Securities (24 launches) introducing leveraged products on commodities and currencies. US, Japan and Global focused ETFs benefitted from inflows, Broad European equities experienced net outflows Majority of the inflows into equity ETFs in Europe were channeled into equities outside of Europe. US equities in particular were favoured by European investors where we observed inflows of +€0.6bn during November. Japan equities and global benchmarks such as MSCI World also benefitted. Our analysis suggests that both segments received net inflows of +€0.4bn each. However, in November, the broad European equities segment had a reversal where we observed monthly outflows of -€0.3bn. Real Estate and Dividend ETFs drew interest in November Sector wise, during November, we found that European investors showed interest in real estate (+€0.4bn) and dividend ETFs (+€0.3bn). The low interest rates environment has lead investors into higher-yielding products such as dividend ETFs which has accumulated +€2bn YTD. Corporate Bonds registered inflows while Sovereign lags Within fixed income, corporate bonds led the flows attracting +€1.7bn over the last month (+€13.1bn YTD) while sovereign bonds reversed the previous month’s trend and recorded outflows of -€1.3bn in November (+€2bn in October & +€8.7bn YTD).
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Deutsche Bank Markets Research
Europe
Synthetic Equity & Index Strategy
European Monthly ETF Market Review
Date
10 December 2015
Strong Equity Inflows where Foreign Equities Benefit
Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. DISCLOSURES AND ANALYST CERTIFICATIONS ARE LOCATED IN APPENDIX 1.MCI (P) 124/04/2015.
1. Investment Trends ...................................................... 8 Cross-Asset Class ETPs ............................................................................................8 Equity ETFs ...............................................................................................................8 Fixed Income ETFs .................................................................................................11 Commodity ETPs ....................................................................................................11
2. Market Metrics .......................................................... 12 ETF Industry Asset Evolution ..................................................................................12 ETFs vs. Cash Equities ............................................................................................15 ETFs vs. Unlisted Mutual Funds .............................................................................17 European ETF Industry Replication Structure Composition (Synthetic vs. Physical)
................................................................................................................................19 Industry Growth Analysis ........................................................................................21
4. Product Review ......................................................... 30 New Products Launched in the Month ...................................................................30 Average TERs .........................................................................................................35
5. Provider Rankings ..................................................... 38 Global Provider Rankings ........................................................................................38 European Provider Rankings – General ...................................................................40 European Provider Rankings – by Asset Class ........................................................44 European Provider Analysis by Replication Method ...............................................47
6. Trading Perspective .................................................. 48 ETP Monthly Turnover Analysis by Asset Class, by Instrument..............................48 Asset Class Analysis ...............................................................................................48 Product Rankings ....................................................................................................53
7. European ETF Exchanges ............................................ 58
8. Assets ......................................................................... 61 ETP Monthly AUM Analysis by Asset Class ...........................................................61 Asset Class Analysis ...............................................................................................61 Product Rankings ....................................................................................................66
9. ETF Broker rankings .................................................. 68 US ETP Broker Rankings .........................................................................................68 European ETP Broker Rankings ..............................................................................70
Appendix A: How we define ETPs ..................................... 72
Appendix B: The road from beta to alpha ......................... 73
10 December 2015
European Monthly ETF Market Review
Deutsche Bank AG/London Page 3
European Investment Trends
All the major asset classes registered inflows during November
European domiciled ETPs recorded yet another month of inflows where we
observed +€3.1bn of inflows into ETPs (+€6.2bn of inflows in Oct’15). During
the month of November, all the major asset classes registered inflows. Equity
ETFs took the lead with inflows of +€2.5bn followed by Fixed Income ETFs
(+€0.5bn) and Commodity ETPs (+€0.2bn). Year-to-date flows for European-
listed ETPs was at +€64.5bn as of the end of November.
US domiciled ETPs recorded inflows of +$26bn (+$28bn in Oct’15) in
November taking YTD flows close to +$200bn. Similar to Europe, Equity ETFs
dominated flows with +$25.1bn (+$15.8bn in Oct’15) of positive flows while
Fixed Income ETFs only registered inflows of +$0.3bn. Commodity ETPs
reversed previous month’s trend and experienced outflows of -$0.2bn
(+$0.5bn in Oct’15).
US, Japan and Global focused ETFs benefitted from inflows, Broad European equities experienced net outflows
Majority of the inflows into equity ETFs in Europe were channeled into equities
outside of Europe. US equities in particular were favoured by European
investors where we observed inflows of +€0.6bn during November. In the US,
this was more prevalent where US-listed ETFs providing US equities exposure,
across various types of indices, registered monthly inflows of c.+$19bn.
Japan equities and global benchmarks such as MSCI World also benefitted
from inflows in November. Our analysis suggests that both segments received
net inflows of +€0.4bn each.
Since start of 2015, European ETFs with exposure broad European equity
indices had attracted significant inflows. This trend was observed both among
European and US investors. In the European ETF domain, our analysis points
to +€20bn YTD. However, in November, this segment showed a slight reversal
where we observed monthly outflows of -€0.3bn out of broad European
equities. In contrast, US listed ETFs with broad European equity exposure
continued to grow in November (+$1bn, YTD total of +$33bn).
Real Estate and Dividend ETFs drew interest in November
Sector wise, during November, we found that European investors showed
interest in real estate and dividend ETFs. Two real estate ETFs that benefitted
from most of the flows were Amundi FTSE EPRA Europe (EPRE FP, +€336mn)
and iShares Developed Markets Property Yield (IWDP LN, +€139mn). Amongst
dividend ETFs we observed net flows of +€0.3bn (+€2bn YTD, see Figure 1). It
is evident that low interest rates around the world are causing investors to look
for higher-yielding products such as dividend ETFs for better-than-market
yields.
10 December 2015
European Monthly ETF Market Review
Page 4 Deutsche Bank AG/London
Figure 1: Cumulative YTD flows into Dividend ETFs
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Cu
mm
ula
tive
Flo
ws €
mn
Dividend ETFs Flows
Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
Corporate Bonds registered inflows while Sovereign lags
In November, European Fixed Income ETF market saw modest inflows of
+€0.5bn (+€3.5bn, +€0.6bn, +€2.4bn and +€2.2bn inflows in the previous four
months). Within fixed income, corporate bonds led the flows attracting
+€1.7bn over the last month (+€13.1bn YTD) while sovereign bonds reversed
the previous month’s trend and recorded outflows of -€1.3bn in November
(+€2bn in October & +€8.7bn YTD). Figure 2 illustrates the monthly trend of
flows into fixed income ETFs (breakdown into Corporate and Sovereign bond
ETFs during 2015).
Figure 2: Monthly Flows into Sovereign and Corporate Bonds ETFs
(1,500)
(1,000)
(500)
-
500
1,000
1,500
2,000
2,500
3,000
Mo
nth
ly F
low
s €
mn
Sovereign Bonds ETFs Corporates Bonds ETFs
Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
Index and WisdomTree Europe Hedged Equity Index. These ETFs were
listed on London Stock Exchange, Deutsche Borse and Borsa Italiana.
ETF Securities listed two new equity ETFs on Borsa Italiana providing 3x
leverage (CH3L IM) and 3x short (CH3S IM) exposure to FTSE China 50
Index.
BlackRock listed one equity ETF (IUIT LN) on London Stock Exchange
tracking S&P 500 Information Technology Index.
1 On exchange turnover, excludes over the counter turnover figures as they are not currently consistently
reported across Europe. 2 Cash equities turnover represents total on-exchange euro value of all traded security types in Europe, as
reported by Bloomberg
10 December 2015
European Monthly ETF Market Review
Page 6 Deutsche Bank AG/London
ThinkCapital ETFs N.V. launched an equity ETF (TNAE NA) providing
exposure to Morningstar North America 100 Equal Weight Index. This ETF
was listed on the Euronext Amsterdam.
Commerzbank AG listed an equity (BOC1 GY) providing exposure to
Shanghai Stock Exchange 50 A Share Index. This ETF was listed on
Deutsche Borse. Fixed Income
BMO Global Asset Management also listed four Fixed income ETF during
November. The three global corporate bond ETFs and a global high yield
ETF are GBP hedged products and track the Barclays Global Corporate 1-3
Liquid Index, Barclays Global Corporate 3-7 Liquid Index, Barclays Global
Corporate 7-10 Liquid Index and Barclays Global HY Corporate Liquid
Index respectively. These ETFs were listed on the London Stock Exchange.
Sun Global Investments debut into the European ETF market by launching
one new Fixed Income ETF (CURY LN) on the London Stock Exchange
tracking the performance of ZyFin India Sovereign Owned Enterprise Bond
Index.
Source launched a Fixed Income ETF (STHS LN) on the London Stock
Exchange providing GBP hedged exposure to BofA Merrill Lynch 0-5 Yr US
HY Constrained index.
Amundi listed one Fixed Income ETF (CBBB FP) during November
providing exposure to Markit iBoxx EUR Liquid Corporates BBB Top 60
Index. This ETF was listed on the Euronext Paris.
Figure 3: Currency Hedged products launches in November
ETF NameBBG
TickerIssuer
Asset
classBenchmark TER
Exchange
Listed
WisdomTree Japan Equity UCITS ETF - GBP Hedged DXJP LN WisdomTree Equity WisdomTree Japan GBP Hedged Equity Index 0.45% London SE
WisdomTree Germany Equity UCITS ETF - USD Hedged DXGG LN WisdomTree Equity WisdomTree Germany USD Hedged Equity Index 0.48% London SE
WisdomTree Europe Equity UCITS ETF - GBP Hedged HEDP LN WisdomTree Equity WisdomTree Europe Hedged Equity Index 0.58% London SE
WisdomTree Japan Equity UCITS ETF - EUR Hedged Acc WTIF GY WisdomTree Equity WisdomTree Japan EUR Hedged Equity Index 0.45% Deutsche Borse
BMO MSCI USA Income Leaders GBP Hedged UCITS ETF ZISG LN BMO Global Asset Management Equity MSCI USA Select Quality Yield 100% Hedged to GBP NR Index 0.40% London SE
BMO MSCI Europe ex-UK Income Leaders GBP Hedged UCITS ETF ZIEG LN BMO Global Asset Management Equity MSCI Europe ex-UK Select Quality Yield 100% Hedged to GBP NR Index 0.40% London SE
PIMCO Short-Term HY Corporate Bond Index Source UCITS ETF - GBP Hgd Inc STHS LN Source Fixed Income BofA Merrill Lynch 0-5 Yr US HY Constrained index 0.60% London SE
BMO Barclays 3-7 Year Global Corporate Bond GBP Hedged UCITS ETF ZC3G LN BMO Global Asset Management Fixed Income Barclays Global Corporate 3-7 Liquid Index 0.30% London SE
BMO Barclays 7-10 Year Global Corporate Bond GBP Hedged UCITS ETF ZC7G LN BMO Global Asset Management Fixed Income Barclays Global Corporate 7-10 Liquid Index 0.30% London SE
BMO Barclays Global High Yield Bond GBP Hedged UCITS ETF ZHYG LN BMO Global Asset Management Fixed Income Barclays Global HY Corporate Liquid Index 0.35% London SE
BMO Barclays 1-3 Year Global Corporate Bond GBP Hedged UCITS ETF ZC1G LN BMO Global Asset Management Fixed Income Barclays Global Corporate 1-3 Liquid Index 0.30% London SE Source: Deutsche Bank, Bloomberg Finance LP, Reuters
ETC launches:
Commodity
ETF Securities listed 18 Commodity ETCs during November providing 3x
short and 3x leveraged exposure (9 launches in each category) to Coffee,
Total 2015 699,349 7,699,332 9.1% 16,323,286 64,038,866 25.5% 2.8x 8.3x 23.4x1As reported by Bloomberg.The figure equals total on-exchange euro value of all traded security types in Europe.
2 As reported by Bloomberg.The figure equals total dollar value of all traded security types on every US Exchange.
Europe (€ million) USA ($ million)
Turnover
US vs Europe comparatives
3 On-exchange turnover comparision between ETFs and Cash Equities.
Source: Deutsche Bank , Bloomberg Finance LP, Reuters
10 December 2015
European Monthly ETF Market Review
Deutsche Bank AG/London Page 17
ETFs vs. Unlisted Mutual Funds
Figure 35: European ETP vs mutual fund assets | ETPs | Europe |
db x-trackers DBLCI - OY Balanced UCITS ETF 1C EUR - Hedged XDBC GR Deutsche AWM Beta 19.7 0.0 -158.7 Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
10 December 2015
European Monthly ETF Market Review
Deutsche Bank AG/London Page 29
Figure 58: Top 10 monthly Equity ETF outflows (€ million) | ETFs | Europe |
ETF Name BBG Ticker Issuer Invest.
Strategy
Current
Month Flows
Prev. Month
Flows
YTD
Flows
iShares Euro STOXX 50 (DE) SX5EEX GR BlackRock Beta -434.5 -78.3 2,063.6
ETFS Energy AIGE LN ETF Securities Beta -8.6 9.6 62.5 Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
10 December 2015
European Monthly ETF Market Review
Page 30 Deutsche Bank AG/London
4. Product Review
New Products Launched in the Month
Figure 61: Number of ETPs by Asset Class | ETPs | Global |
Nov-15 Oct-15 End of 2014
Asset Class Nu.Mkt
Share %Nu. Nu. % Nu. Nu. %
ETFs
Equity 2,924 66.6% 2,885 39 66.9% 2,602 322 64.7%
Fixed income 705 16.1% 693 12 16.1% 665 40 16.5%
Commodity 110 2.5% 110 - 2.6% 107 3 2.7%
Currency 16 0.4% 15 1 0.3% 17 (1) 0.4%
Multi Asset 43 1.0% 43 - 1.0% 45 (2) 1.1%
Alternative 51 1.2% 51 - 1.2% 47 4 1.2%
Total 3,849 87.7% 3,797 52 88.0% 3,483 366 86.7%
ETC/Vs
Equity - 0.0% 0 - 0.0% 0 - 0.0%
Commodity 412 9.4% 394 18 9.1% 406 6 10.1%
Currency 124 2.8% 118 6 2.7% 126 (2) 3.1%
Alternative 4 0.1% 4 - 0.1% 4 - 0.1%
Total 540 12.3% 516 24 12.0% 536 4 13.3%
Total ETPs 4,389 100.0% 4,313 76 100.0% 4,019 370 100.0%
MoM Change YTD Change
Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
Figure 62: Number of ETPs by Asset Class | ETPs | Europe |
Nov-15 Oct-15 End of 2014
Asset Class Nu.Mkt
Share %Nu. Nu. % Nu. Nu. %
ETFs
Equity 1,091 55.2% 1,074 17 0.9% 1,021 70 3.7%
Fixed income 356 18.0% 349 7 0.4% 341 15 0.8%
Commodity 50 2.5% 50 - 0.0% 49 1 0.1%
Currency - 0.0% 0 - 0.0% 1 (1) -0.1%
Multi Asset 8 0.4% 8 - 0.0% 8 - 0.0%
Alternative 15 0.8% 15 - 0.0% 20 (5) -0.3%
Total 1,520 76.9% 1,496 24 1.2% 1,440 80 4.2%
ETCs
Commodity 349 17.7% 331 18 0.9% 342 7 0.4%
Currency 107 5.4% 101 6 0.3% 109 (2) -0.1%
Total 456 23.1% 432 24 1.2% 451 5 0.3%
Total ETPs 1,976 100.0% 1,928 48 2.5% 1,891 85 4.5%
MoM Change YTD Change
Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
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Figure 63: New ETF launches & cross listings | ETFs | Europe |
Launch/ cross
listing dateBBG Ticker
Reuters
CodeIssuer ETF Name Asset class
Invest.
StrategyFocus
Market
flagBenchmark
Long
/Short/
Leverage
TERExchange
Listed
New Launches
3-Nov-15 CH3L IM CH3L.MI ETF Securities ETFS 3x Daily Long FTSE China 50 Equity Beta+ Leveraged Long EM FTSE China 50 3x Daily Leveraged Index 3L 0.98% Borsa Italiana
3-Nov-15 CH3S IM CH3S.MI ETF Securities ETFS 3x Daily Short FTSE China 50 Equity Beta+ Leveraged Short EM FTSE China 50 3x Daily Short Index 3S 0.98% Borsa Italiana
4-Nov-15 DXJP LN DXJP.L WisdomTree WisdomTree Japan Equity UCITS ETF - GBP Hedged Equity Beta Developed non-Europe DM WisdomTree Japan GBP Hedged Equity Index 1L 0.45% London SE
4-Nov-15 DXGG LN DXGG.L WisdomTree WisdomTree Germany Equity UCITS ETF - USD Hedged Equity Beta European Developed DM WisdomTree Germany USD Hedged Equity Index 1L 0.48% London SE
4-Nov-15 HEDP LN HEDP.L WisdomTree WisdomTree Europe Equity UCITS ETF - GBP Hedged Equity Beta Europe DM WisdomTree Europe Hedged Equity Index 1L 0.58% London SE
5-Nov-15 WTDF GY WTDF.DE WisdomTree WisdomTree Europe Equity UCITS ETF - EUR Acc Equity Beta Europe DM WisdomTree Europe Equity Index 1L 0.32% Deutsche Borse
5-Nov-15 WTIZ GY WTIZ.DE WisdomTree WisdomTree Japan Equity UCITS ETF - JPY Acc Equity Beta Developed non-Europe DM WisdomTree Japan Equity Index 1L 0.40% Deutsche Borse
5-Nov-15 WTIF GY WTIF.DE WisdomTree WisdomTree Japan Equity UCITS ETF - EUR Hedged Acc Equity Beta Developed non-Europe DM WisdomTree Japan EUR Hedged Equity Index 1L 0.45% Deutsche Borse
6-Nov-15 DXGY IM DXGY.MI WisdomTree WisdomTree Germany Equity UCITS ETF - EUR Acc Equity Beta European Developed DM WisdomTree Germany Equity Index 1L 0.32% Borsa Italiana
9-Nov-15 ZILE LN ZILE.L BMO Global Asset Management BMO MSCI Europe ex-UK Income Leaders UCITS ETF Equity Beta Dividend DM MSCI Europe ex-UK Select Quality Yield EUR NR Index 1L 0.35% London SE
9-Nov-15 ZHYG LN ZHYG.L BMO Global Asset Management BMO Barclays Global High Yield Bond GBP Hedged UCITS ETF Fixed Income Beta Overall DM Barclays Global HY Corporate Liquid Index 1L 0.35% London SE
9-Nov-15 ZC1G LN ZC1G.L BMO Global Asset Management BMO Barclays 1-3 Year Global Corporate Bond GBP Hedged UCITS ETF Fixed Income Beta Overall DM Barclays Global Corporate 1-3 Liquid Index 1L 0.30% London SE
9-Nov-15 ZISG LN ZISG.L BMO Global Asset Management BMO MSCI USA Income Leaders GBP Hedged UCITS ETF Equity Beta Dividend DM MSCI USA Select Quality Yield 100% Hedged to GBP NR Index 1L 0.40% London SE
9-Nov-15 ZC3G LN ZC3G.L BMO Global Asset Management BMO Barclays 3-7 Year Global Corporate Bond GBP Hedged UCITS ETF Fixed Income Beta Overall DM Barclays Global Corporate 3-7 Liquid Index 1L 0.30% London SE
9-Nov-15 ZILS LN ZILS.L BMO Global Asset Management BMO MSCI USA Income Leaders UCITS ETF Equity Beta Dividend DM MSCI USA Select Quality Yield USD NR Index 1L 0.35% London SE
9-Nov-15 ZIEG LN ZIEG.L BMO Global Asset Management BMO MSCI Europe ex-UK Income Leaders GBP Hedged UCITS ETF Equity Beta Dividend DM MSCI Europe ex-UK Select Quality Yield 100% Hedged to GBP NR Index 1L 0.40% London SE
9-Nov-15 ZILK LN ZILK.L BMO Global Asset Management BMO MSCI UK Income Leaders UCITS ETF Equity Beta Dividend DM MSCI UK Select Quality Yield GBP NR Index 1L 0.35% London SE
9-Nov-15 ZC7G LN ZC7G.L BMO Global Asset Management BMO Barclays 7-10 Year Global Corporate Bond GBP Hedged UCITS ETF Fixed Income Beta Overall DM Barclays Global Corporate 7-10 Liquid Index 1L 0.30% London SE
10-Nov-15 CBBB FP CBBB.PA Amundi Amundi ETF BBB Euro Corporate IG UCITS ETF Fixed Income Beta Overall DM Markit iBoxx EUR Liquid Corporates BBB Top 60 1L 0.20% Euronext Paris
11-Nov-15 TNAE NA TNAE.AS ThinkCapital ETFs N.V. Think Morningstar North America Equity UCITS ETF Equity Beta Developed non-Europe DM Morningstar North America 100 Equal Weight Index 1L 0.20% Euronext Amsterdam
18-Nov-15 BOC1 GY BOC1.DE Commerzbank AG BOCI Commerzbank SSE 50 A Share Index UCITS ETF Equity Beta Emerging Country EM SSE50 A-Share-Index 1L 0.80% Deutsche Borse
19-Nov-15 CURY LN CURY.L Sun Global Investments LAM Global ZyFin India Sovereign Enterprise Bond UCITS ETF Fixed Income Beta Overall EM ZyFin India Sovereign Owned Enterprise Bond Index 1L 0.79% London SE
20-Nov-15 STHS LN STHS.L Source PIMCO Short-Term HY Corporate Bond Index Source UCITS ETF - GBP Hgd Inc Fixed Income Beta Overall DM BofA Merrill Lynch 0-5 Yr US HY Constrained index 1L 0.60% London SE
23-Nov-15 IUIT LN IUIT.L BlackRock iShares S&P Information Technology Sector UCITS ETF Equity Beta Other Sector DM S&P 500 Information Technology Index 1L 0.15% London SE
Cross-Listings & share classes
3-Nov-15 D500 GY D500.DE Source Source S&P 500 UCITS ETF B Equity Beta Developed non-Europe DM S&P 500 1L 0.05% Deutsche Borse
4-Nov-15 DXJG LN DXJG.L WisdomTree WisdomTree Japan Equity UCITS ETF - JPY Acc Equity Beta Developed non-Europe DM WisdomTree Japan Equity Index 1L 0.40% London SE
4-Nov-15 DXJZ LN DXJZ.L WisdomTree WisdomTree Japan Equity UCITS ETF - JPY Acc Equity Beta Developed non-Europe DM WisdomTree Japan Equity Index 1L 0.40% London SE
4-Nov-15 HEDF LN HEDF.L WisdomTree WisdomTree Europe Equity UCITS ETF - EUR Acc Equity Beta Europe DM WisdomTree Europe Equity Index 1L 0.32% London SE
4-Nov-15 HEDG LN HEDG.L WisdomTree WisdomTree Europe Equity UCITS ETF - EUR Acc Equity Beta Europe DM WisdomTree Europe Equity Index 1L 0.32% London SE
4-Nov-15 DXGE LN DXGE.L WisdomTree WisdomTree Germany Equity UCITS ETF - USD Hedged Equity Beta European Developed DM WisdomTree Germany USD Hedged Equity Index 1L 0.48% London SE
4-Nov-15 DXGY LN DXGY.L WisdomTree WisdomTree Germany Equity UCITS ETF - EUR Acc Equity Beta European Developed DM WisdomTree Germany Equity Index 1L 0.32% London SE
4-Nov-15 DXGZ LN DXGZ.L WisdomTree WisdomTree Germany Equity UCITS ETF - EUR Acc Equity Beta European Developed DM WisdomTree Germany Equity Index 1L 0.32% London SE
5-Nov-15 WTEZ GY WTEZ.DE WisdomTree WisdomTree Germany Equity UCITS ETF - EUR Acc Equity Beta European Developed DM WisdomTree Germany Equity Index 1L 0.32% Deutsche Borse
6-Nov-15 HEDF IM HEDF.MI WisdomTree WisdomTree Europe Equity UCITS ETF - EUR Acc Equity Beta Europe DM WisdomTree Europe Equity Index 1L 0.32% Borsa Italiana
6-Nov-15 DXJZ IM DXJZ.MI WisdomTree WisdomTree Japan Equity UCITS ETF - JPY Acc Equity Beta Developed non-Europe DM WisdomTree Japan Equity Index 1L 0.40% Borsa Italiana
6-Nov-15 DXJF IM DXJF.MI WisdomTree WisdomTree Japan Equity UCITS ETF - EUR Hedged Acc Equity Beta Developed non-Europe DM WisdomTree Japan EUR Hedged Equity Index 1L 0.45% Borsa Italiana
9-Nov-15 GMVM GY GMVM.DE Van Eck Funds Market Vectors Morningstar US Wide Moat UCITS ETF Equity Beta Other Theme DM Morningstar Wide Moat Focus 1L 0.49% Deutsche Borse
10-Nov-15 CC4D FP CC4D.PA Amundi Amundi ETF Euro Corporates UCITS ETF Fixed Income Beta Overall DM Markit iBoxx EUR Liquid Corporates Index 1L 0.16% Euronext Paris
10-Nov-15 X1GD FP X1GD.PA Amundi Amundi Govt Bond Lowest Rated EuroMTS Investment Grade UCITS ETF Fixed Income Beta Overall DM FTSE MTS Lowest-Rated Eurozone Government Bond IG 1L 0.14% Euronext Paris
10-Nov-15 AHYD FP AHYD.PA Amundi Amundi Euro HY Liquid Bond iboxx UCITS ETF Fixed Income Beta Overall DM Markit iBoxx EUR Liquid High Yield 30 Ex-Financial Index 1L 0.40% Euronext Paris
17-Nov-15 AMEB GY AMEB.DE Amundi Amundi ETF MSCI Europe Buyback UCITS ETF Equity Beta Other Theme DM MSCI Europe Equal Weighted Buyback Yield Index 1L 0.30% Deutsche Borse
17-Nov-15 GNT1 GY GNT1.DE Sun Global Investments LAM Global ZyFin India Sovereign Enterprise Bond UCITS ETF Fixed Income Beta Overall EM ZyFin India Sovereign Owned Enterprise Bond Index 1L 0.79% Deutsche Borse
17-Nov-15 ISPY IM ISPY.MI ETF Securities ETFS ISE Cyber Security GO UCITS ETF Equity Beta Other Theme Overall ISE Cyber Security Index 1L 0.75% Borsa Italiana
18-Nov-15 CCMR GY CCMR.DE Commerzbank AG Commerzbank CCBI RQFII Money Market UCITS ETF Fixed Income Beta Overall EM Other 1L 0.65% Deutsche Borse
18-Nov-15 MFDD IM MFDD.MI Lyxor Lyxor Euro Stoxx 300 DR - D EUR Equity Beta Eurozone DM Euro STOXX 1L 0.30% Borsa Italiana
18-Nov-15 MEUD IM MEUD.MI Lyxor Lyxor STOXX Europe 600 DR UCITS ETF Equity Beta Europe DM STOXX Europe 600 1L 0.30% Borsa Italiana
18-Nov-15 CCME GY CCME.DE Commerzbank AG Commerzbank CCBI RQFII Money Market UCITS ETF -EUR Fixed Income Beta Overall EM Other 1L 0.65% Deutsche Borse
19-Nov-15 CRRY LN CRRY.L Sun Global Investments LAM Global ZyFin India Sovereign Enterprise Bond UCITS ETF Fixed Income Beta Overall EM ZyFin India Sovereign Owned Enterprise Bond Index 1L 0.79% London SE Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
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Figure 64: New ETF launches & cross listings | ETFs | Europe |
Launch/ cross
listing dateBBG Ticker
Reuters
CodeIssuer ETF Name Asset class
Invest.
StrategyFocus
Market
flagBenchmark
Long
/Short/
Leverage
TERExchange
Listed
Cross-Listings & share classes
20-Nov-15 CNAA SW CNAA.S Lyxor Lyxor Fortune SG UCITS ETF MSCI China A DR C-USD Equity Beta Emerging Country EM MSCI China A TR Net Index 1L 0.65% London SE
23-Nov-15 IHCU LN IHCU.L BlackRock iShares S&P Health Care Sector UCITS ETF Equity Beta Other Sector DM S&P 500 Health Care Index 1L 0.15% London SE
23-Nov-15 IUFS LN IUFS.L BlackRock iShares S&P Financials Sector UCITS ETF Equity Beta Other Sector DM S&P 500 Financials Index 1L 0.15% London SE
23-Nov-15 IUHC LN IUHC.L BlackRock iShares S&P Health Care Sector UCITS ETF Equity Beta Other Sector DM S&P 500 Health Care Index 1L 0.15% London SE
23-Nov-15 UIFS LN UIFS.L BlackRock iShares S&P Financials Sector UCITS ETF Equity Beta Other Sector DM S&P 500 Financials Index 1L 0.15% London SE
23-Nov-15 IUCD LN IUCD.L BlackRock iShares S&P Consumer Discretionary Sector UCITS ETF Equity Beta Other Sector DM S&P 500 Consumer Discretionary Index 1L 0.15% London SE
23-Nov-15 ICDU LN ICDU.L BlackRock iShares S&P Consumer Discretionary Sector UCITS ETF Equity Beta Other Sector DM S&P 500 Consumer Discretionary Index 1L 0.15% London SE
24-Nov-15 IESU LN IESU.L BlackRock iShares S&P Energy Sector UCITS ETF Equity Beta Other Sector DM S&P 500 Energy Index 1L 0.15% London SE
24-Nov-15 IITU LN IITU.L BlackRock iShares S&P Information Technology Sector UCITS ETF Equity Beta Other Sector DM S&P 500 Information Technology Index 1L 0.15% London SE
24-Nov-15 IUES LN IUES.L BlackRock iShares S&P Energy Sector UCITS ETF Equity Beta Other Sector DM S&P 500 Energy Index 1L 0.15% London SE Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
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Figure 65: New ETC launches & cross listings | ETCs | Europe |
Launch/ cross
listing date
BBG
Ticker
Reuters
CodeIssuer ETC Name Asset class
Invest.
StrategyFocus Benchmark
Long
/Short/
Leverage
TERExchange
Listed
New Launches
2-Nov-15 3SUS IM 3SUS.MI ETF SecuritiesETFS 3x Daily Short Sugar Commodity Beta+ Sugar Bloomberg Sugar Subindex TR 3S 0.98% Borsa Italiana
2-Nov-15 3WHL IM 3WHL.MI ETF SecuritiesETFS 3X Daily Long Wheat Commodity Beta+ Wheat Bloomberg Wheat Subindex TR 3L 0.98% Borsa Italiana
2-Nov-15 3CUS IM 3CUS.MI ETF SecuritiesETFS 3x Daily Short Copper Commodity Beta+ Copper Bloomberg Copper Subindex TR 3S 0.98% Borsa Italiana
2-Nov-15 3AUL IM 3AUL.MI ETF SecuritiesETFS 3x Daily Long Gold Commodity Beta+ Gold Bloomberg Gold Subindex TR 3L 0.98% Borsa Italiana
2-Nov-15 NG3L IM NG3L.MI ETF SecuritiesETFS 3X Daily Long Natural Gas Commodity Beta+ Natural Gas Bloomberg Natural Gas Subindex TR 3L 0.98% Borsa Italiana
2-Nov-15 3CUL IM 3CUL.MI ETF SecuritiesETFS 3x Daily Long Copper Commodity Beta+ Copper Bloomberg Copper Subindex TR 3L 0.98% Borsa Italiana
2-Nov-15 3AUS IM 3AUS.MI ETF SecuritiesETFS 3x Daily Short Gold Commodity Beta+ Gold Bloomberg Gold Subindex TR 3S 0.98% Borsa Italiana
2-Nov-15 3NIL IM 3NIL.MI ETF SecuritiesETFS 3X Daily Long Nickel Commodity Beta+ Nickel Bloomberg Nickel Subindex TR 3L 0.98% Borsa Italiana
2-Nov-15 SI3L IM SI3L.MI ETF SecuritiesETFS 3x Daily Long Silver Commodity Beta+ Silver Bloomberg Silver Subindex TR 3L 0.98% Borsa Italiana
2-Nov-15 3CRS IM 3CRS.MI ETF SecuritiesETFS 3x Daily Short WTI Crude Oil Commodity Beta+ Crude Oil Bloomberg WTI Crude Oil Subindex TR 3S 0.98% Borsa Italiana
2-Nov-15 SI3S IM SI3S.MI ETF SecuritiesETFS 3X Daily Short Silver Commodity Beta+ Silver Bloomberg Silver Subindex TR 3S 0.98% Borsa Italiana
2-Nov-15 3NIS IM 3NIS.MI ETF SecuritiesETFS 3X Daily Short Nickel Commodity Beta+ Nickel Bloomberg Nickel Subindex TR 3S 0.98% Borsa Italiana
2-Nov-15 3CRL IM 3CRL.MI ETF SecuritiesETFS 3x Daily Long WTI Crude Oil Commodity Beta+ Crude Oil Bloomberg WTI Crude Oil Subindex TR 3L 0.98% Borsa Italiana
2-Nov-15 3WHS IM 3WHS.MI ETF SecuritiesETFS 3x Daily Short Wheat Commodity Beta+ Wheat Bloomberg Wheat Subindex TR 3S 0.98% Borsa Italiana
2-Nov-15 3SUL IM 3SUL.MI ETF SecuritiesETFS 3x Daily Long Sugar Commodity Beta+ Sugar Bloomberg Sugar Subindex TR 3L 0.98% Borsa Italiana
2-Nov-15 3CFL IM 3CFL.MI ETF SecuritiesETFS 3x Daily Long Coffee Commodity Beta+ Coffee Bloomberg Coffee Subindex TR 3L 0.98% Borsa Italiana
2-Nov-15 3CFS IM 3CFS.MI ETF SecuritiesETFS 3X Daily Short Coffee Commodity Beta+ Coffee Bloomberg Coffee Subindex TR 3S 0.98% Borsa Italiana
2-Nov-15 NG3S IM NG3S.MI ETF SecuritiesETFS 3x Daily Short Natural Gas Commodity Beta+ Natural Gas Bloomberg Natural Gas Subindex TR 3S 0.98% Borsa Italiana
23-Nov-15 SUP5 LN SUP5.L ETF SecuritiesETFS 5x Short EUR Long GBP Currency Beta+ EURGBP MSFX 5x Short Euro/British Pound Index (TR) 5S 0.98% London SE
23-Nov-15 SUD5 LN SUD5.L ETF SecuritiesETFS 5x Long EUR Short USD Currency Beta+ EURUSD MSFX 5x Long Euro/US Dollar Index (TR) 5L 0.98% London SE
24-Nov-15 USP5 LN USP5.L ETF SecuritiesETFS 5x Long USD Short GBP Currency Beta+ USDGBP MSFX 5x Long US Dollar/British Pound Index (TR) 5L 0.98% London SE
23-Nov-15 PUS5 LN PUS5.L ETF SecuritiesETFS 5x Short USD Long GBP Currency Beta+ USDGBP MSFX 5x Short US Dollar/British Pound Index (TR) 5S 0.98% London SE
23-Nov-15 LUD5 LN LUD5.L ETF SecuritiesETFS 5x Short EUR Long USD Currency Beta+ EURUSD MSFX 5x Short Euro/US Dollar Index (TR) 5S 0.98% London SE
23-Nov-15 EUP5 LN EUP5.L ETF SecuritiesETFS 5x Long EUR Short GBP Currency Beta+ EURGBP MSFX 5x Long Euro/British Pound Index (TR) 5L 0.98% London SE
Cross-Listings & share classes
23-Nov-15 3WHS LN 3WHS.L ETF SecuritiesETFS 3x Daily Short Wheat Commodity Beta+ Wheat Bloomberg Wheat Subindex TR 3S 0.98% London SE
23-Nov-15 3CRL LN 3CRL.L ETF SecuritiesETFS 3x Daily Long WTI Crude Oil Commodity Beta+ Crude Oil Bloomberg WTI Crude Oil Subindex TR 3L 0.98% London SE
23-Nov-15 SI3L LN SI3L.L ETF SecuritiesETFS 3x Daily Long Silver Commodity Beta+ Silver Bloomberg Silver Subindex TR 3L 0.98% London SE
23-Nov-15 3CFS LN 3CFS.L ETF SecuritiesETFS 3x Daily Short Coffee Commodity Beta+ Coffee Bloomberg Coffee Subindex TR 3S 0.98% London SE
23-Nov-15 NG3L LN NG3L.L ETF SecuritiesETFS 3x Daily Long Natural Gas Commodity Beta+ Natural Gas Bloomberg Natural Gas Subindex TR 3L 0.98% London SE
23-Nov-15 3CUS LN 3CUS.L ETF SecuritiesETFS 3x Daily Short Copper Commodity Beta+ Copper Bloomberg Copper Subindex TR 3S 0.98% London SE
23-Nov-15 3NIS LN 3NIS.L ETF SecuritiesETFS 3x Daily Short Nickel Commodity Beta+ Nickel Bloomberg Nickel Subindex TR 3S 0.98% London SE Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
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Figure 66: New ETC launches & cross listings | ETCs | Europe |
Launch/ cross
listing date
BBG
Ticker
Reuters
CodeIssuer ETC Name Asset class
Invest.
StrategyFocus Benchmark
Long
/Short/
Leverage
TERExchange
Listed
Cross-Listings & share classes
23-Nov-15 3AUL LN 3AUL.L ETF SecuritiesETFS 3x Daily Long Gold Commodity Beta+ Gold Bloomberg Gold Subindex TR 3L 0.98% London SE
23-Nov-15 NG3S LN NG3S.L ETF SecuritiesETFS 3x Daily Short Natural Gas Commodity Beta+ Natural Gas Bloomberg Natural Gas Subindex TR 3S 0.98% London SE
23-Nov-15 3SUL LN 3SUL.L ETF SecuritiesETFS 3x Daily Long Sugar Commodity Beta+ Sugar Bloomberg Sugar Subindex TR 3L 0.98% London SE
23-Nov-15 3CRS LN 3CRS.L ETF SecuritiesETFS 3x Daily Short WTI Crude Oil Commodity Beta+ Crude Oil Bloomberg WTI Crude Oil Subindex TR 3S 0.98% London SE
23-Nov-15 3WHL LN 3WHL.L ETF SecuritiesETFS 3x Daily Long Wheat Commodity Beta+ Wheat Bloomberg Wheat Subindex TR 3L 0.98% London SE
23-Nov-15 3CUL LN 3CUL.L ETF SecuritiesETFS 3x Daily Long Copper Commodity Beta+ Copper Bloomberg Copper Subindex TR 3L 0.98% London SE
23-Nov-15 SI3S LN SI3S.L ETF SecuritiesETFS 3x Daily Short Silver Commodity Beta+ Silver Bloomberg Silver Subindex TR 3S 0.98% London SE
23-Nov-15 3NIL LN 3NIL.L ETF SecuritiesETFS 3x Daily Long Nickel Commodity Beta+ Nickel Bloomberg Nickel Subindex TR 3L 0.98% London SE
23-Nov-15 3CFL LN 3CFL.L ETF SecuritiesETFS 3x Daily Long Coffee Commodity Beta+ Coffee Bloomberg Coffee Subindex TR 3L 0.98% London SE
23-Nov-15 3AUS LN 3AUS.L ETF SecuritiesETFS 3x Daily Short Gold Commodity Beta+ Gold Bloomberg Gold Subindex TR 3S 0.98% London SE
23-Nov-15 3SUS LN 3SUS.L ETF SecuritiesETFS 3x Daily Short Sugar Commodity Beta+ Sugar Bloomberg Sugar Subindex TR 3S 0.98% London SE Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
10 December 2015
European Monthly ETF Market Review
Deutsche Bank AG/London Page 35
Average TERs
Figure 67: ETF TERs using simple average | ETFs | Europe |
Asset class Strategy TER Nu. TER Nu. TER Nu.
Equity Alpha 0.75% 2 1.48% 3 1.19% 5
Beta 0.39% 528 0.42% 447 0.40% 975
Beta+ 0.50% 2 0.55% 75 0.55% 77
Semi Active 0.54% 16 0.55% 18 0.54% 34
0.39% 548 0.44% 543 0.42% 1,091
Fixed Income Alpha 0.59% 8 0.41% 2 0.54% 10
Beta 0.25% 193 0.19% 134 0.22% 327
Beta+ NA NA 0.23% 19 0.23% 19
0.26% 201 0.20% 155 0.23% 356
Alternative Alpha NA NA 0.67% 4 0.67% 4
Beta 0.75% 2 0.70% 2 0.73% 4
Beta+ NA NA NA NA NA NA
Semi Active 0.30% 1 0.57% 6 0.54% 7
0.006 3 0.63% 12 0.63% 15
Commodity Beta 0.49% 22 0.49% 27 0.49% 49
Beta+ NA NA NA NA NA NA
Semi Active NA NA 0.45% 1 0.45% 1
0.49% 22 0.49% 28 0.49% 50
Currency Beta NA NA NA NA NA NA
NA NA NA NA NA NA
Multi Asset Beta NA 1 NA NA NA 1
Alpha 0.52% 5 0.64% 2 0.57% 7
0.52% 6 0.64% 2 0.57% 8
Total 0.37% 780 0.40% 740 0.39% 1,520
Physical Synthetic Total
Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
10 December 2015
European Monthly ETF Market Review
Page 36 Deutsche Bank AG/London
Figure 68: ETC TERs using simple average | ETCs | Europe |
Asset Class Segment Strategy TER Nu. TER Nu. TER Nu.
Commodity Agriculture Beta NA NA 0.51% 39 0.50% 39
Beta+ NA NA 0.92% 35 0.92% 35
Energy Beta NA NA 0.49% 51 0.47% 51
Beta+ NA NA 0.80% 53 0.80% 53
Industrial Metals Beta NA NA 0.50% 24 0.48% 24
Beta+ NA NA 0.90% 27 0.90% 27
Livestock Beta NA NA 0.49% 6 0.49% 6
Beta+ NA NA 0.98% 6 0.98% 6
Overall Beta NA NA 0.52% 10 0.47% 10
Beta+ NA NA 0.98% 4 0.98% 4
Precious Metals Beta 0.45% 31 0.44% 20 0.43% 51
Beta+ NA NA 0.76% 43 0.76% 43
Commodity 0.45% 31 0.67% 318 0.64% 349
Currency Currency Beta NA NA 0.41% 40 0.41% 40
Beta+ NA NA 0.82% 67 0.82% 67
Currency NA NA 0.67% 107 0.67% 107
Physical Synthetic Total
Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
10 December 2015
European Monthly ETF Market Review
Deutsche Bank AG/London Page 37
Figure 69: ETF TERs using AUM weighted average | ETFs | Europe |
Asset class Strategy TER Nu. TER Nu. TER Nu.
Equity Alpha 0.75% 2 0.95% 3 0.76% 5
Beta 0.31% 528 0.34% 447 0.31% 975
Beta+ 0.50% 2 0.48% 75 0.48% 77
Semi Active 0.56% 16 0.54% 18 0.55% 34
0.31% 548 0.35% 543 0.32% 1,091
Fixed Income Alpha 0.36% 8 0.39% 2 0.36% 10
Beta 0.26% 193 0.18% 134 0.24% 327
Beta+ NA NA 0.22% 19 0.22% 19
0.26% 201 0.18% 155 0.25% 356
Alternative Alpha NA NA 0.86% 4 0.86% 4
Beta 0.75% 2 0.70% 2 0.73% 4
Beta+ NA NA NA NA NA NA
Semi Active 0.30% 1 0.64% 6 0.51% 7
0.73% 3 0.80% 12 0.78% 15
Commodity Beta 0.41% 22 0.43% 27 0.42% 49
Beta+ NA NA NA NA NA NA
Semi Active NA NA 0.45% 1 0.45% 1
0.41% 22 0.43% 28 0.42% 50
Currency Beta NA NA NA NA NA NA
NA NA NA - NA -
Multi Asset Beta 0.40% 1 NA NA 0.40% 1
Alpha 0.60% 5 0.70% 2 0.69% 7
0.60% 6 0.70% 2 0.69% 7
Total 0.30% 780 0.32% 740 0.31% 1,520
Synthetic TotalPhysical
Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
Figure 70: ETC TERs using AUM weighted average | ETCs | Europe |
Asset Class Segment Strategy TER Nu. TER Nu. TER Nu.
Commodity Agriculture Beta NA NA 0.53% 39 0.53% 39
Beta+ NA NA 0.98% 35 0.98% 35
Energy Beta NA NA 0.51% 51 0.51% 51
Beta+ NA NA 0.98% 53 0.98% 53
Industrial Metals Beta NA NA 0.49% 24 0.49% 24
Beta+ NA NA 0.98% 27 0.98% 27
Livestock Beta NA NA 0.49% 6 0.49% 6
Beta+ NA NA 0.98% 6 0.98% 6
Overall Beta NA NA 0.50% 10 0.50% 10
Beta+ NA NA 0.98% 4 0.98% 4
Precious Metals Beta 0.39% 31 0.37% 20 0.38% 51
Beta+ NA NA 0.97% 43 0.97% 43
Commodity 0.39% 31 0.53% 318 0.44% 349
Currency Currency Beta NA NA 0.39% 40 0.39% 40
Beta+ NA NA 0.92% 67 0.92% 67
Currency NA NA 0.76% 107 0.76% 107
TotalPhysical Synthetic
Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
10 December 2015
European Monthly ETF Market Review
Page 38 Deutsche Bank AG/London
5. Provider Rankings
Global Provider Rankings
Figure 71: Global Top 10 ETF Providers ($ million) | ETFs | Global |
*New entrant in 2015 is highlighted in light grey. *Blackrock’s acquisition of Credit Suisse’s ETF business completed on 1-Jul-2013. We have added historical AUM of Credit Suisse ETFs to Blackrock ETFs. Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
10 December 2015
European Monthly ETF Market Review
Deutsche Bank AG/London Page 41
Figure 75: European ETC Providers (All) – Assets, Flows, Products, Turnover | ETCs | Europe |
*New entrant in 2015 is highlighted in light grey. *Blackrock’s acquisition of Credit Suisse’s ETF business completed on 1-Jul-2013. We have added historical AUM of Credit Suisse ETFs to Blackrock ETFs. Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
10 December 2015
European Monthly ETF Market Review
Deutsche Bank AG/London Page 43
Figure 77: European ETP Providers tier market share | ETPs | Europe |
60% 65% 70% 75% 80% 85% 90% 95% 100%
Q4 14
Q1 15
Q2 15
Q3 15
Nov-15
Q4 14 Q1 15 Q2 15 Q3 15 Nov-15
Tier 1 68.6% 68.7% 68.3% 68.1% 68.5%
Tier 2 27.3% 27.2% 27.6% 27.7% 27.5%
Tier 3 4.2% 4.0% 4.1% 4.2% 4.0%
Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
10 December 2015
European Monthly ETF Market Review
Page 44 Deutsche Bank AG/London
European Provider Rankings – by Asset Class
Figure 78: European ETF Providers (All) – Assets, Flows, Products, Turnover | ETFs | Europe |
*New entrant in 2015 is highlighted in light grey. *Blackrock’s acquisition of Credit Suisse’s ETF business completed on 1-Jul-2013. We have added historical AUM of Credit Suisse ETFs to Blackrock ETFs. Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
10 December 2015
European Monthly ETF Market Review
Deutsche Bank AG/London Page 45
Figure 79: European ETC Providers (All) – Assets, Flows, Products, Turnover | ETCs | Europe |
*New entrant in 2015 is highlighted in light grey. *Blackrock’s acquisition of Credit Suisse’s ETF business completed on 1-Jul-2013. We have added historical AUM of Credit Suisse ETFs to Blackrock ETFs. Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
10 December 2015
European Monthly ETF Market Review
Deutsche Bank AG/London Page 47
European Provider Analysis by Replication Method
Figure 81: European ETF Providers list by replication | ETFs | Europe|
*New entrant in 2015 is highlighted in light grey. *Blackrock’s acquisition of Credit Suisse’s ETF business completed on 1-Jul-2013. We have added historical AUM of Credit Suisse ETFs to Blackrock ETFs. Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
10 December 2015
European Monthly ETF Market Review
Page 48 Deutsche Bank AG/London
6. Trading Perspective
ETP Monthly Turnover Analysis by Asset Class, by Instrument
Figure 82: Turnover by asset class and instrument (€ million) | ETPs | Europe | YTD
1 iShares Core DAX UCITS ETF DE DAXEX GR 1,507.83 1 db x-trackers II EONIA TR Index UCITS ETF XEON GR 102.86
2 iShares Euro STOXX 50 (DE) SX5EEX GR 698.55 2 db x-trackers II iBoxx Euro Sovereigns Eurozone Yield Plus Index UCITS ETF XY4P GR 65.10
3 Deka DAX UCITS ETF ETFDAX GR 608.78 3 iShares Barclays Euro Aggregate Bond EUN4 GR 63.26
4 iShares STOXX 600 (DE) SXXPIEX GR 573.46 4 Deka Deutsche Borse EUROGOV Germany 5-10 UCITS ETF ETFGS51 GR 60.62
5 db x-trackers DAX® UCITS ETF (DR) 1C XDAX GR 558.82 5 iShares Markit iBoxx Euro High Yield EUNW GR 52.98
6 iShares EURO STOXX 50 UCITS ETF (Inc) EUN2 GR 330.05 6 iShares Euro Corporate Bond Large Cap UCITS ETF IBCS GR 40.02
7 db x-trackers Euro Stoxx 50® UCITS ETF (DR) - 1C XESC GR 234.45 7 db x-trackers II iBoxx Euro Sovereigns Eurozone UCITS ETF XGLE GR 38.40
8 db x-trackers Euro Stoxx 50® UCITS ETF (DR) - 1D XESX GR 221.17 8 db x-trackers II iBoxx Euro Sovereigns Eurozone 1-3 TR Index UCITS ETF X13E GR 31.15
9 iShares MDAX (DE) MDAXEX GR 182.11 9 db x-trackers II Barclays Global Aggregate Bond UCITS ETF - 1C XBAG GY 29.76
10 db x-trackers ShortDAX UCITS ETF XSDX GR 178.33 10 db x-trackers II iBoxx Euro Sovereigns Eurozone 5-7 TR Index UCITS ETF X57E GR 28.81
Commodity ETPs BBG Ticker Turnover Other BBG Ticker Turnover
1 XETRA-Gold XAUEUR 79.67 1 db x-trackers LPX Major Market Private Equity UCITS ETF XLPE GR 9.93
2 db Physical Gold Euro Hedged ETC XAD1 GR 22.66 2 db x-trackers Portfolio TR Index UCITS ETF XQUI GR 9.19
3 Source Physical Gold ETC (P-ETC) 8PSG GY 18.53 3 db x-trackers - db Hedge Fund Index UCITS ETF 1C EUR - Hedged XHFI GR 1.94
4 ETFS WTI Crude Oil OD7F GR 16.45 4 ETFS 5X Short USD Long EUR 5CH6 GY 1.16
5 iShares Dow Jones UBS Commodity Swap (DE) DJCOMEX GR 14.90 5 db-x trackers Portfolio Income UCITS ETF XS7W GR 1.08
6 ETFS Brent Oil OESA GR 14.87 6 UBS ETFs plc - HFRX Global Hedge Fund Index SF UIQC GR 0.98
7 db x-trackers DBLCI - OY Balanced UCITS ETF 1C EUR - Hedged XDBC GR 13.42 7 iShares S&P Listed Private Equity Fund IQQL GR 0.84
8 Gold Bullion Securities GG9B GR 10.60 8 ETFS 5X Long USD Short EUR 5CH5 GY 0.84
9 ETFS Physical Gold VZLD GR 9.17 9 ETFS Long USD Short EUR XBJP GR 0.76
10 ComStage ETF Commerzbank Commodity EW Index TR CBCOMM GR 8.28 10 Lyxor ETF Dynamic Short VIX Futures Index - EUR VOOS GR 0.30
Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
10 December 2015
European Monthly ETF Market Review
Deutsche Bank AG/London Page 55
Figure 90: Top 10 ETPs by Turnover (€ million) – London SE | ETPs | Europe | Equity ETFs BBG Ticker Turnover Fixed Income ETFs BBG Ticker Turnover
1 iShares FTSE 100 UCITS ETF (Inc) ISF LN 919.40 1 iShares Euro High Yield Corporate Bond UCITS ETF IHYG LN 1,244.16
1 iShares MSCI Europe UCITS ETF (Inc) IMEU NA 332.67 1 iShares Euro Corporate Bond UCITS ETF IEAC NA 72.35
2 iShares MSCI Japan EUR Hedged UCITS ETF IJPE NA 204.55 2 iShares Euro Aggregate Bond UCITS ETF IEAG NA 59.02
3 iShares Core MSCI World UCITS ETF (Acc) IWDA NA 143.68 3 iShares Euro Corporate Bond Large Cap UCITS ETF IBCX NA 27.82
4 iShares AEX UCITS ETF IAEX NA 105.20 4 iShares Euro Inflation Linked Government Bond UCITS ETF IBCI NA 22.01
5 Vanguard S&P 500 ETF VUSA NA 101.11 5 iShares $ Ultrashort Bond UCITS ETF ERND NA 19.84
6 iShares MSCI World UCITS ETF (Inc) IWRD NA 94.46 6 iShares $ Treasury Bond 7-10yr UCITS ETF BTMA NA 14.44
7 iShares EURO STOXX 50 UCITS ETF (Inc) EUEA NA 93.18 7 iShares $ Short Duration Corporate Bond UCITS ETF SDIG NA 13.37
8 iShares MSCI Emerging Markets UCITS ETF (Inc) IEMM NA 76.34 8 iShares Euro Government Bond 3-5yr UCITS ETF IBGX NA 13.15
9 iShares S&P 500 UCITS ETF (Inc) IUSA NA 67.33 9 iShares Euro Government Bond 1-3yr UCITS ETF IBGS NA 12.66
10 Think AEX Tracker TDT NA 46.33 10 iShares Euro Government Bond 15-30yr UCITS ETF IBGL NA 11.52 Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
10 December 2015
European Monthly ETF Market Review
Page 58 Deutsche Bank AG/London
7. European ETF Exchanges
Figure 95: European on-exchange ETF trading ranking by exchange (€ million) | ETFs | Europe |
* Borse Stuttgart ETFs turnover totalled €0.7bn for November 2015 as per the data provided by the exchange. This turnover is not included in any of the figures in this report. All the ETFs listed on Borse Stuttgart are cross with primarily listing on Deutsche Borse. We include ETF listings from each country’s major exchanges only in our analysis. Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
10 December 2015
European Monthly ETF Market Review
Deutsche Bank AG/London Page 59
Figure 96: European on-exchange ETC trading ranking by exchange (€ million) | ETCs | Europe |
Summary Jul-15Market
Share %Aug-15
Market
Share %Sep-15
Market
Share %Oct-15
Market
Share %Nov-15
Market
Share %
LSE
London SE 2,381 3.7% 1,719 2.4% 1,410 2.4% 1,785 3.1% 1,376 2.5%
* Borse Stuttgart ETCs turnover totalled €93mn for November 2015 as per the data provided by the exchange. This turnover is not included in any of the figures in this report. All the ETCs listed on Borse Stuttgart are cross with primarily listing on Deutsche Borse. We include ETC listings from each country’s major exchanges only in our analysis. Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
10 December 2015
European Monthly ETF Market Review
Page 60 Deutsche Bank AG/London
Figure 97: Total ETP on-exchange Turnover by asset class and by exchange | ETPs | Europe |
db X-trackers II IBoxx Sovereigns Eurozone Yield Plus 1-3 UCITS ETF XYP1 GY Deutsche AWM Beta 1,401.5 1,479.1 980.9 Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
10 December 2015
European Monthly ETF Market Review
Deutsche Bank AG/London Page 67
Figure 104: Top 20 Products by AUM – Commodity ETPs (€ million) | ETPs | Europe |
Global 4,447 2,721,220 100.0% 3,906 2,640,532 97.0% 541 80,691 3.0%
ETPs ETFs ETC/Vs
Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
Exchange-Traded Funds (ETFs, 97%)
US (71%): Fund structures that issue shares that are traded on an exchange much the same way as equities. ETFs
indexed to equity and fixed income benchmarks are registered under the investment company act of 1940. Only physical
index replication techniques are permissible by this legislation while synthetic replication is not allowed.
Europe (16%): Fund structures that issue units or shares that are traded on an exchange much the same way as
equities. The vast majorities of European ETFs are UCITS III compliant and are primarily domiciled in Dublin and
Luxemburg. The Undertakings for Collective Investment in Transferable Securities (UCITS) are a set of European Union
directives that aim to allow collective investment schemes to operate freely throughout the EU on the basis of a single
authorization from one member state. Both physical and synthetic index replication is permissible by UCITS and funds
are allowed to track equity, fixed income as well as diversified commodity indices.
Asia (7%): Both European and US ETFs are cross sold into the Asian market.
Exchange-Traded Collateralized Instruments (3%)
Exchange-Traded Commodities (ETCs, 1%)
In Europe as UCITS III does not permit the creation of funds tracking non diversified commodity indices (for example
wheat or oil), exchange-traded products that track single commodity profiles are issued under the EU Prospectus
Directive in two structures that have become widely known as exchange-traded commodities (ETCs). ETCs can either
be physically backed or they can be issued through a bankruptcy remote special purpose vehicle (SPV). Both forms
utilize offshore domiciles, such as Jersey, and are classed as debt instruments. Physically-backed ETCs are fully backed
with securities that closely resemble the composition of a product’s benchmark index. SPV structures are collateralized
by assets which could bear no resemblance to those of their respective benchmark index and ensure replication of their
index return through a total return swap structure or by holding other derivative instruments such as futures. In the vast
majority of cases, both types of ETCs are fully collateralized with secure assets such as money market instruments,
government bonds and gold. For more information, please refer to our research report issued on March 11 2010 titled
‘The race for assets in the European Exchange-Traded Products Market”.
Exchange-traded vehicles (ETVs, 2%)
This terminology typically refers to grantor trusts that exist in the US market. These instruments track primarily
commodity benchmarks. They differ from ETFs in that they are registered under the Securities Act of 1933 and not the
investment Company Act of 1940, hence they are not classed as funds. Vehicles that replicate commodity benchmarks,
more often known as pools, and funds targeting alternative index returns are formed under the Commodities Exchange
Act and are listed under the 33 Securities Act, and report under 34 Corporate Act.
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Appendix B: The road from beta to alpha
The figure below illustrates the road from beta (diversified rule based market access) to alpha (discretionary market
access). Moving counter-clockwise from beta, the potential for return increases, together with the potential risk.
Figure 110: The Roadmap From Beta (β) to Alpha (α) Beta Alpha
Beta Multiplied Beta Adjusted
Beta Alpha
BetaKey Characteristics:- Diversification rules apply- Long only exposure- Weighting based on market capitalization- Composition based on pre-determined rules- Representative of a pre-defined market segmentReturn profile: Match very closely index return profileRisk profile: Match very closely index risk profile
Semi-active:Key Characteristics:- Diversification rules might apply- Long only exposure- Weighting not based on market capitalization- Composition based on pre-determined rules- Representative of a market segment per seReturn profile: Aims to generate superior returnsRisk profile: Not consistent with a diversified index risk profile
Beta+ (leveraged, long/short)Key Characteristics:- Diversification rules apply- Long, short and/or leveraged exposure- Weighting based on market capitalization- Composition based on pre-determined rules- Representative of a pre-defined market segmentReturn profile: Aims to generate superior returnsRisk profile: Not consistent with a diversified index risk profile
AlphaKey Characteristics:- Diversification rules do not typically apply- Long, short and/or leveraged exposure- Weighting not based on market capitalization- Composition not based on pre-determined rules- Not Representative of a pre-defined market segmentReturn profile: Aims to generate positive returnsRisk profile: Dependent on investment decisions
Source: Deutsche Bank
The performance of beta products is measured against an index; a manager is most successful when they manage to
match the return of a product to its stated benchmark. The performance of alpha products, or rather the performance of
an alpha product’s manager, is measured by the risk adjusted return it generates. The highest the return and the lowest
the risk [typically measured by the standard deviation of a product’s returns] the more successful a product is deemed
to be.
There is however a whole host of products that fall between beta and alpha, we have sought to create a classification
system that classifies these products, taking into consideration a number of variables, ranging from diversification to
what constitutes a market segment.
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The authors of this report wish to acknowledge the contribution made by Vibhor
Mahalwala and Varun Sachdeva, employees of Evalueserve, a third party
provider to Deutsche Bank of offshore research support services.
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Appendix 1
Important Disclosures
Additional information available upon request
*Prices are current as of the end of the previous trading session unless otherwise indicated and are sourced from local exchanges via Reuters, Bloomberg and other vendors . Other information is sourced from Deutsche Bank, subject companies, and other sources. For disclosures pertaining to recommendations or estimates made on securities other than the primary subject of this research, please see the most recently published company report or visit our global disclosure look-up page on our website at http://gm.db.com/ger/disclosure/DisclosureDirectory.eqsr
Analyst Certification
The views expressed in this report accurately reflect the personal views of the undersigned lead analyst(s). In addition, the undersigned lead analyst(s) has not and will not receive any compensation for providing a specific recommendation or view in this report. Ari Rajendra
Equity rating key Equity rating dispersion and banking relationships
Buy: Based on a current 12- month view of total share-holder return (TSR = percentage change in share price from current price to projected target price plus pro-jected dividend yield ) , we recommend that investors buy the stock. Sell: Based on a current 12-month view of total share-holder return, we recommend that investors sell the stock Hold: We take a neutral view on the stock 12-months out and, based on this time horizon, do not recommend either a Buy or Sell. Notes:
1. Newly issued research recommendations and target prices always supersede previously published research. 2. Ratings definitions prior to 27 January, 2007 were:
Buy: Expected total return (including dividends) of 10% or more over a 12-month period Hold: Expected total return (including dividends) between -10% and 10% over a 12-month period Sell: Expected total return (including dividends) of -10% or worse over a 12-month period