Michael Cafiero – Vice President ETF Trading – Knight Capital Americas, L.P.
Knight ETF Trading: It is with great pleasure to share with you that our team has been once again been named Top ETF Market Maker for the Americas by exchangetradedfunds.com
Flows: Month to date Knight ETF Trading has traded in 1,452 ETFs accounting for 13.45% of total ETF volume. (Autex Block Data 4/19/13)
US Equity ETFs: Despite the recent spike in volatility; volumes remain quite tepid. For US equity ETFs flows have been two sided for SPY(SPDR S&P 500 ETF TRUST) but heavy from the buy side for IVV(SPDR S&P 500 ETF (ISHARES CORE S&P 500 ETF) and VTI (VANGUARD US TOTAL STOCK MKT). Small cap flows have been seen steady from the buy side as seen in IWM (ISHARES RUSSELL 2000) and SCHA (SCHWAB US SMALL-CAP ETF) and into mid-caps as well as seen in flows into IJH(ISHARES CORE S&P MIDCAP ETF). Heavy inflows into SH (PROSHARES SHORT S&P500) pin points that the bears are positioning themselves for a bigger pull back.
Fixed Income ETFs: We continue to see many trying to stay short on the curve. Overall sellers in JNK (SPDR BARCLAYS HIGH YIELD BD), VCLT (VANGUARD LONG-TERM CORP BOND) while buyers have been seen in short duration names like HYS (PIMCO 0-5 YEAR H/Y CORP BOND), BSJF(GUGGENHEIM BULLETSHARES 2015), and SJNK(SPDR BARCLAYS SHORT-TERM HIG). Bank loan funds continue to see buy side interest specifically in BKLN (POWERSHARES SENIOR LOAN) and newly launched SRLN (SPDR BLACKSTONE/GSO SEN LOAN).
International ETFs: Sellers seen this month in the larger EM ETFs including VWO (VANGUARD FTSE EMERGING MARKE) and EEM (ISHARES MSCI EMERGING MKT IN). Flows have been strong into IEMG (ISHARES CORE MSCI EMERGING), ECON (EGSHARES EM CONSUMER ETF), and EEMV (ISHA MSCI EMERG MKT MIN VOL). Yield oriented international funds continue to see interest specifically in EDIV (SPDR S&P EMERGING MARKETS DI), DYVE (ISHARES EMERGING MKT DVD), and DFJ (WISDOMTREE JAP S/C DVD FUND). To note, sellers have been seen in RSX (MARKET VECTORS RUSSIA ETF), and MCHI (ISHARES MSCI CHINA INDEX FD).
Commodity ETFs/ETNs: Obviously immense sellers and few buyers seen in the last two weeks in most gold funds including GLD (SPDR GOLD TRUST), and IAU (ISHARES GOLD TRUST). Same story with silver funds including SLV(ISHARES SILVER TRUST ) and PSLV(SPROTT PHYSICAL SILVER TRUST)
Sector ETFs: Regarding sectors we have seen buyers of XLP(CONSUMER STAPLES SPDR), XLV (HEALTH CARE SELECT SECTOR), and IYC (ISHARES DJ US CNSMER SERVICE). Sellers have been seen across the board of XLI(INDUSTRIAL SELECT SECT SPDR), XLB (MATERIALS SELECT SECTOR SPDR), XOP (SPDR S&P OIL & GAS EXP & PR).
Alternative/Specialty ETFs: REITs have seen an uptick in buy side demand specifically in names like RWR (SPDR DOW JONES REIT ETF), VNQ (VANGUARD REIT ETF), and IYR(ISHARES DJ US REAL ESTATE). Yield oriented funds such as MDIV(FT NASDAQ US MA DIVERS INC) and SDIV(GLOBAL X SUPERDIVIDEND ETF) continue to see strong flows. Natural resource funds GNR (SPDR S&P GL NAT RESOURCES) and GUNR (FLEXSHARES GLOBAL UPSTREAM N) also have seen strong buy side flows.
You may reach Michael directly at firstname.lastname@example.org
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