ETP Landscape AWS
ETP Landscape Monthly Snapshot February 28, 2013
The opinions expressed are as of February 28, 2013 and may change as subsequent conditions vary.
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION.
Global ETP Monthly Overview
Highlights (US$):1
February Results at a Glance1
February flows of $10.6bn ensured the strongest 2-month start for Equities
Feb 2013
Jan 2013
Dec 2012
Feb 2012
Monthly Flows 10.6
37.0
38.7
15.6
Assets
2,037
2,044
1,944
1,720
# of ETPs
4,798
4,793
4,759
4,560
(US$bn)
Developed Market Equity ETPs continued to exhibit strong momentum in February, gathering $13.0bn. This included $7.3bn in non-US exposures. Sector funds added $4.7bn led by Real Estate with $1.5bn, under the backdrop of improving economic indicators in the US housing markets.
On the heels of a strong risk rally in January, continued purchasing in February brought YTD Equity ETP flows to $47.1bn, the strongest Jan-Feb total on record. The S&P 500 index came close to levels last seen in 2007, even as the US sequester budget negotiations wore on, and some concerns persisted over the durability of the US Federal Reserve’s asset purchase program. Emerging Markets Equity inflows slowed compared to January and High Yield Fixed Income funds experienced outflows as modest yield compression continued. Equity Income in Demand: Dividend focused ETPs gathered $1.6bn in February. The continued appetite for yield is even more evident when adding the $1.5bn from Real Estate and $0.7bn from Preferred Stock ETPs. Duration Rotation: Investors continued to move toward the short end of the Fixed Income yield curve. February inflows into Short Maturity Fixed Income ETPs (including Ultra-Short Term, ShortTerm and Floating Rate) totaled $4.0bn while all other maturities saw collective outflows of ($1.3bn). Gold Loses its Luster: Set against the backdrop of rising Equities, a strengthening US dollar, and US Treasury bonds yield holding below 2%, the investment appetite for Gold has waned. Gold ETP outflows totaled ($5.6bn) and have now reached ($6.8bn) YTD.
Global 13-Month Rolling Net Flows1 2013 YTD Net Flows: $50.0bn (US$bn)
Feb-13
10.6
Jan-13
37.0
Dec-12
38.7
Nov-12
25.7
Oct-12
13.2
Sep-12
45.1
Aug-12
11.6
Jul-12
22.8
Jun-12
20.3
May-12
18.8
Apr-12
0.8
Mar-12
16.4
Feb-12
15.6
($10) $0
$10 $20 $30 $40
Equity
Fixed Income
Commodity / Other
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2
Year-To-Date Global ETP Flows YTD 2013 vs. YTD 2012 Global ETP Flows1 Equities $47.1bn
(US$bn)
YTD 2013: $47.6bn
20.0
YTD 2012: $49.1bn
15.0 10.0 5.0 0.0 -5.0 N. America
Other Developed/ Global
Emerging Markets
YTD-2013 Flows
Fixed Income
Commodities & Other
YTD-2012 Flows
Year-To-Date Highlights (US$):1 Year-to-date Equity ETP flows of $47.1bn are off to a record start in 2013 with a strong showing across a number of exposures. Flows into Developed Markets ex-North America of $16.0bn were well above YTD 2012 when the category registered almost no net inflows. The overall level of asset gathering is slightly off 2012’s record-setting pace due to Gold outflows and moderated inflows into Fixed Income as compared to 2012’s record-breaking levels. North America Equities Lead: YTD 2013 flows of $18.1bn are up ~$5.3bn versus YTD 2012 and are focused in Small Cap, Mid Cap, Dividend Focused, and Sectors. Cyclical Sectors in Favor: Sector ETPs continue to see increased investor demand, taking in another $4.7bn in February. More economically-sensitive sectors such as Real Estate, Financials and Technology remain in favor and lead the category with nearly 52% of February flows. YTD 2013 inflows of $11.0bn are up ~$4.1bn over the comparable period for 2012.
Cumulative Equity ETP Flows1 Year-To-Date 2013 Equity Flows: $47.1bn
180
2012
150
2011
120 90
2010 2013
60 30 0 -30
Jan
March
June
Sept
Dec
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3
Momentum in Minimum Volatility and Dividend Income Average Monthly Flows: Minimum Volatility ETPs1
Highlights (US$):1 Flows into Minimum Volatility (or Low Volatility) ETPs have picked up in 2013. These funds seek to provide exposure to a particular Equity segment like Emerging Markets or Global stocks with a reduced amount of price volatility than traditional market-cap weighted indexes.
(US$mn)
1000 800 600 400
Minimum Volatility funds attracted average monthly flows of $926mn for the first two months of 2013, or more than double the average monthly flows of $416mn in 2012.
200 0 2013
2012
Part of that surge in flows is attributable to the fact that providers are offering more of these funds. There are now 34 Minimum or Low Volatility ETPs available globally, which together hold $8.7 billion in assets. It’s important to note that there are considerable methodology differences in the indexes they track. Some indexes screen out the most volatile stocks, while others take a more dynamic approach to screening for low beta stocks. Investors can use Minimum Volatility ETPs as a means to gain access to equity markets while maintaining some downside protection.
Dividend Dividend Income Equity Income ETP Equity Monthly ETPs Flows1 (US$mn)
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
Jun-11
May-11
Apr-11
Mar-11
Feb-11
Jan-11
3,300 2,800 2,300 1,800 1,300 800 300 -200
ETP investors continued to seek income through Dividend Focused ETPs which gathered $1.6bn in February and $4.5bn YTD, after stalling in Q4 while negotiations over the US fiscal cliff placed tax treatment of dividends in limbo.
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4
Rotation in Fixed Income ETPs Maturity Bucket Analysis YTD Fixed Income Flows: By Duration Category1, 3 +$5.7bn
(US$bn)
($1.2bn)
5.0 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 Floating Rate
Ultra-Short Term
Short-Term
Intermediate
Long-Term
Broad Maturities
Duration Rotation within Fixed Income:1 While there has been speculation that we could be seeing the beginnings of a great rotation from Fixed Income to Equities, the flows in ETPs indicate that we aren’t seeing a “flight” from credit, but rather a rotation into shorter-duration assets. With the 10-year Treasury yield up roughly 12bps from December, investors are considering the impact of rising rates on longer duration Fixed Income securities. In this context, YTD flows into Short Maturity (Ultra-Short Term, Short-Term and Floating Rate) ETPs have escalated to $5.7bn while longer-duration categories have seen outflows of ($1.2bn), including Broad Maturity ETPs that blend a number of maturity categories into a single fund. Most of the short duration inflows came in February, which accounted for $4.0bn of the $5.7bn YTD total.
On a YTD basis, 8 of the top 10 asset-gathering Bond ETPs were either Short-Term or Floating Rate exposures. This represents a departure from both Q4 2012 and full-year 2012 when Short-Term & Floating products composed only 2 of the top 10 asset gathering ETPs. Floating Rate ETPs can be used as a tool to adjust duration in a portfolio, serve as a higher yielding alternative to money market funds, and act as a diversifier within portfolios. These credit instruments can span the investment grade and high yield credit rating categories. Contrary to the shift toward short-term ETP instruments, money market mutual funds have seen net redemptions of ($34.5bn) YTD.2 It appears that investors are rotating money market assets into Equities.
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5
Global ETP Flows by Listing Region
Highlights (US$):1 ETPs listed in the US account for 70% of global ETP assets and 71% of global 2012 net inflows. Year-to-date 2013, flows into US-listed products accounted for 79% of the global total. ETP assets in the US have grown about 5.7%, helped by market price movements with the S&P 500 reaching a psychologically important level of 1500 for the first time since 2007.
February Net Flows by Listing Region1
Asset Growth Rates and YTD Flows1 (US$bn)
US
7.8
Europe
1.4
Bubble size = Assets ($bn)
50
Canada
2013 YTD Flows
40
0.9
Latin America
0.4
US $1,426
30 Europe
20
$375
Asia Pacific
10
Latin America $13
$143 Canada
Asia Pacific
0.1
($5) Equity
$0
Fixed Income
$5
0
$56
-10-5%
$10
0% 5% 2013 AUM Growth
10%
Commodities/Others
Listing Region View (US$bn)1 Net Flows Feb 2013 Assets
% Asset Market Share
Number of Products
47.6
2,037.0
100
4,798
7.8
37.7
1,426.2
70.0
1,444
Europe
1.4
7.9
375.4
18.4
2,135
Canada
0.9
0.4
56.0
2.7
270
Latin America
0.4
0.6
13.0
0.6
35
Asia Pacific
0.1
0.9
143.2
7.0
551
*
*
23.3
1.1
363
By Listing Region
Feb 2013
YTD 2013
Global ETP Total
10.6
US
Middle East and Africa * Not available
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6
Global ETPs and Mutual Funds Monthly Flows Highlights (US$): 1, 2 Developed Equity mutual fund flows shifted from outflows in 2012 to net inflows in 2013. Year-todate, mutual funds have drawn in $36.8bn while Developed Equity ETPs attracted inflows of $36.6bn year-to-date, Fixed Income mutual funds and ETPs enjoyed steady inflows in 2012 which continued into January and then moderated in February. Year-to-date, mutual funds have gathered $56.3bn while Fixed Income ETP flows totaled $4.8bn.
Emerging Markets Equity flows trended higher in December and January for both mutual funds and ETPs. In February, mutual funds gathered $7.6bn while Emerging Markets Equity ETPs saw outflows of ($0.4bn).
Monthly Flows (US$bn)1, 2 Developed Markets Equity 35 25 15
ETP Flows
5
Mutual Fund Flows (5) (15) (25) (35) Jul
Aug
Sep
Oct
Nov
Dec Jan-13Feb-13
Fixed Income
Emerging Markets Equity 16
60 50
12
40 8
30 20
4
10 0
0 (10)
Jul
Aug
Sep
Oct
Nov
Dec Jan-13Feb-13
(4)
Jul
Aug
Sep
Oct
Nov
Dec Jan-13Feb-13
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7
Top 15 New 2013 Global ETPs Ranked by AUM Highlights (US$):1 • 75 new ETPs and 6 individual share class listings debuted around the globe so far this year • 36 products and 3 individual share class listing were delisted so far this year with combined AUM of less than $260mn • One new ETF listed in China captured most of the flow into newly launched ETPs year-to-date Product Name (US$mn)1
Bloomberg Ticker
Exposure
Launch Date
Feb-2013 Assets
Listing Region
ChinaAMC CSI 300 Index ETF
510330 CH
Equity
Jan-13
3,167
Asia Pacific
Samsung KODEX FTSE China A50 ETF
169950 KS
Equity
Jan-13
168
Asia Pacific
Lyxor MTS Spain Gov Bond All-Maturity
ES10 FP
Fixed Income
Feb-13
66
Europe
159921 CH
Equity
Jan-13
41
Asia Pacific
Amundi ETF MSCI Europe Ex Financials
EUXF FP
Equity
Jan-13
41
Europe
ComStage ETF S&P SMIT 40 Index TRN Fund
E129 GY
Equity
Jan-13
39
Europe
NEXT NOTES KOSPI200 Leveraged ETN
2033 JP
Equity
Feb-13
34
Asia Pacific
SMICHI SW
Equity
Feb-13
32
Europe
NEXT NOTES HSI Leveraged ETN
2031 JP
Equity
Feb-13
31
Asia Pacific
Mirae Asset TIGER Beta Plus ETF
170350 KS
Equity
Jan-13
30
Asia Pacific
iPath S&P MLP ETN
IMLP US
Equity
Jan-13
30
US
Gold Shares Covered Call ETN
GLDI US
Commodities
Jan-13
24
US
PIMCO Foreign Currency Strategy ETF
FORX US
Currency
Feb-13
22
US
db x-trackers NIKKEI 225 UCITS ETF
XDJP GY
Equity
Feb-13
19
Europe
2032 JP
Equity
Feb-13
16
Asia Pacific
2013
195
All
Lion SZSE Small and Medium Enterprises Composite Index ETF
UBS-ETF SMI (Share Class)
NEXT NOTES HSI Short ETN
60 additional ETPs Total - 75 ETPs
3,956
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8
Global ETPs Ranked by Year-to-Date Inflows and Outflows
ETPs as of February (US$mn) 1
Bloomberg Ticker
2013 YTD Inflows
Feb-2013 Assets
WisdomTree Japan Hedged Equity Fund
DXJ US
2,843
4,313
iShares MSCI Emerging Markets
EEM US
2,751
50,758
510330 CH
2,607
3,167
VTI US
1,788
27,716
Vanguard FTSE Emerging Markets
VWO US
1,559
60,545
iShares Russell 2000
IWM US
1,414
19,219
Vanguard S&P 500
VOO US
1,149
8,199
Vanguard REIT
VNQ US
999
17,167
PowerShares Senior Loan Portfolio
BKLN US
973
2,474
EFA US
957
41,438
ChinaAMC CSI 300 Index ETF Vanguard Total Stock Market
iShares MSCI EAFE
ETPs as of February (US$mn) 1
Bloomberg Ticker
2013 YTD Outflows
Feb-2013 Assets
SPDR S&P 500
SPY US
(5,942)
125,095
SPDR Gold
GLD US
(4,946)
64,042
iShares S&P/TSX 60 Index Fund
XIU CN
(1,497)
11,164
SPDR Dow Jones Industrial Average Trust
DIA US
(1,298)
10,400
iShares iBoxx $ Investment Grade Corporate Bond
LQD US
(1,117)
24,038
iShares Barclays TIPS Bond
TIP US
(1,026)
21,107
HYG US
(1,020)
15,078
IEI US
(960)
2,134
iShares MSCI Brazil
EWZ US
(959)
8,376
ProShares Ultra 7-10 Year Treasury
UST US
(711)
14
iShares iBoxx $ High Yield Corporate Bond iShares Barclays 3-7 Year Treasury Bond
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9
Global ETP Flows by Exposure: Developed Equity
Exposure (US$mn)
US Size and Style
US Sector
1
Large Cap Mid Cap Small Cap Micro Cap Total Market Extended Market Preferred Stock US Size and Style Total Basic Materials Consumer Cyclicals Consumer Non-cyclicals Energy Financials Health Care Industrials Real Estate Technology Telecommunications Utilities Theme US Sector Total
US Strategy US Total Canada Equity North America Regional Equity North America Total Large Cap Mid Cap Pan European Small Cap Size and Style Total Market Pan European Size and Style Total Pan European Sector Pan European Strategy Pan European Total Germany U.K. Country
Switzerland France
2013 YTD Net Flows
% of 2013 YTD Flows
(2,263)
(2,110)
(4.4)
345,489
17.0
219
Assets
% of Assets
# ETPs
994
2,625
5.5
60,640
3.0
51
1,472
4,757
10.0
60,359
3.0
64
6
37
0.1
617
0.0
4
1,253
3,439
7.2
46,417
2.3
58 3
69
195
0.4
2,321
0.1
463
1,052
2.2
16,305
0.8
5
1,995
9,995
21.0
532,149
26.1
404
(410)
200
0.4
5,405
0.3
14
174
1,048
2.2
11,639
0.6
18
337
111
0.2
8,500
0.4
12
498
1,209
2.5
26,641
1.3
39
609
1,542
3.2
20,970
1.0
37
277
455
1.0
14,493
0.7
28
489
933
2.0
7,818
0.4
17
1,004
1,927
4.1
30,063
1.5
22
99
1,321
2.8
16,201
0.8
31
(7)
(109)
(0.2)
847
0.0
5
161
(44)
(0.1)
8,285
0.4
11
54
115
0.2
1,189
0.1
9
3,284
8,709
18.3
152,050
7.5
243
434
2,143
4.5
50,274
2.5
47
5,712
20,847
43.8
734,472
36.1
694 83
44
(584)
(1.2)
33,183
1.6
102
277
0.6
6,556
0.3
21
5,858
20,540
43.2
774,211
38.0
798
307
1,139
2.4
30,587
1.5
77
7
28
0.1
700
0.0
8
(19)
141
0.3
1,398
0.1
13
(70)
1,170
2.5
26,355
1.3
65
222
2,473
5.2
59,004
2.9
162
(224) 30 31 (302)
(222) 61 2,317 (670)
(0.5) 0.1 4.9 (1.4)
11,164 2,410 72,613 36,694
0.5 0.1 3.6 1.8
158 20 341 63
480
143
0.3
14,271
0.7
51
41
30
0.1
8,736
0.4
22
(151)
(292)
(0.6)
5,150
0.3
19
Others
225
639
1.3
7,902
0.4
74
Europe Single Country Total
293
(151)
(0.3)
72,753
3.6
229
324
2,166
4.6
145,367
7.1
570
293 2,835
1,523 3,836
3.2 8.1
17,024 94,086
0.8 4.6
54 220
3,129
5,359
11.3
111,110
5.5
274
3,662 12,972
8,496 36,562
17.9 76.9
153,945 1,184,632
7.6 58.2
435 2,077
Europe Total Asia-Pacific
Feb-2013 Net Flows
Regional Country
Asia Pacific Total Global & Others Developed Equity Total
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10
Global ETP Flows by Exposure: EM Equity, Fixed Income, & Commodities
Exposure (US$mn)
Broad EM
1
Broad Emerging Markets Broad Frontier Markets Broad EM Total
Regional EM Brazil China India Russia EM Single Country South Korea Mexico Others EM Single Country Total Emerging Markets Equity Total Equity Total Broad/Aggregate Govt/Corp Emerging Markets Municipal Government - Sovereign Government - US Treasury Government Total Fixed Income Inflation High Yield Corporate Investment Grade Corporate Money Market Mortgage Others Fixed Income Total Broad Market Agriculture Energy Industrial Metals Commodities Precious Metals - Gold Precious Metals - Silver Precious Metals - Others Precious Metals - Total Commodities Total Alternatives Volatility Others Alternatives Total Asset Allocation Currency Israel ETP Global ETP Total
Feb-2013 Net Flows
2013 YTD % of 2013 Net YTD Flows Flows
Assets
% of # ETPs Assets
418
7,408
15.6
145,447
7.1
24
71
0.1
405
0.0
105 5
441
7,479
15.7
145,852
7.2
110 79
(57)
282
0.6
10,028
0.5
(527)
(865)
(1.8)
13,499
0.7
45
(406)
1,893
4.0
63,830
3.1
163
(166)
(121)
(0.3)
5,597
0.3
51
13
66
0.1
4,316
0.2
18
(150)
673
1.4
16,635
0.8
111
434
857
1.8
11,589
0.6
18
60
293
0.6
16,933
0.8
132 538
(742)
2,796
5.9
132,399
6.5
(358)
10,557
22.2
288,279
14.2
727
12,615
47,119
99.0
1,472,911
72.3
2,804
295
360
0.8
41,582
2.0
31
1,122
2,137
4.5
21,642
1.1
18
272
618
1.3
20,911
1.0
60
188
557
1.2
13,601
0.7
32
88
823
1.7
38,841
1.9
256
393
(1,840)
(3.9)
31,352
1.5
76
481
(1,017)
(2.1)
70,192
3.4
332
(698)
(280)
(0.6)
33,672
1.7
36
(841)
(11)
(0.0)
38,397
1.9
38
657
1,179
2.5
79,864
3.9
112 20
466
283
0.6
6,641
0.3
121
(183)
(0.4)
8,316
0.4
7
639
1,159
2.4
6,298
0.3
31
2,702
4,800
10.1
341,115
16.7
717
113
560
1.2
19,751
1.0
122
93
436
0.9
6,486
0.3
204
(218)
(774)
(1.6)
8,365
0.4
212
125
347
0.7
2,984
0.1
127
(5,642)
(6,765)
(14.2)
128,223
6.3
111
306
745
1.6
16,738
0.8
66
74
97
0.2
5,387
0.3
83
(5,262)
(5,923)
(12.4)
150,348
7.4
260
(5,149)
(5,354)
(11.3)
187,934
9.2
925
286
679
1.4
2,999
0.1
49
(20)
(57)
(0.1)
2,867
0.1
79
266
622
1.3
5,867
0.3
128
200
412
0.9
3,352
0.2
75
(19)
(25)
(0.1)
4,992
0.2
149
-
-
-
20,857
1.0
-
10,615
47,573
100.0
2,037,027
100.0
4,798
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11
Endnotes
Endnotes Exchange traded products (ETPs) are portfolio exposure securities that trade intra-day on an exchange 1. Data is as of February 27, 2013 for Europe and February 28, 2013 for the US, Canada, Latin America, Israel, and some Asia ETPs. Some Asia ETP data is as of January 31, 2013. Global ETP flows and assets are sourced using shares outstanding and net asset values from Bloomberg for the US, Canada, Europe, Latin America and some ETPs in Asia. Middle East ETP assets are sourced from the Bank of Israel. ETP flows and assets in China are sourced from Wind. Inflows for years prior to 2010 are sourced from Strategic Insights Simfund. Asset classifications are assigned by the BlackRock based on product definitions from provider websites and product prospectuses. Other static product information is obtained from provider websites , product prospectuses, provider press releases, and provider surveys. 2. Mutual fund data is sourced from EPFR (excluding Money Market funds and ETFs). Full year 2012 and January 2013 data is sourced from EPFR monthly data. February 2013 is sourced from EPFR weekly data for the four weeks ended February 27, 2013 3. Two categories (Selected Maturities and Fixed Maturity) are excluded from the maturity profile shown above, which have additional $368mn combined ETP inflows year-to-date. We classify maturity buckets of a Fixed Income ETP if the fund invests at least 70% of its assets in the corresponding maturity/exposure range: Ultra Short-Term: underlying security maturities < 1 year; Short-Term: 1 year < underlying security maturities < 3 years; Intermediate: 3 years < underlying security maturities < 10 years; Long-Term: underlying security maturities > 10 years; Broad Maturities: The fund invests in more than two maturity buckets without emphasizing one; Floating Rate: The fund holds floating rate securities and/or bank loans; Selected Maturities: The fund holds securities with multiple selected range of maturity buckets, i.e. barbell strategy which focus on the specific short-term and long-term buckets with even weights; Fixed Maturity: The fund itself has a target maturity date and arranged holdings correspondingly
Index returns are for illustrative purposes only and do not represent actual Fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
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12
About Us
About the ETP Landscape: Monthly Snapshot report For inquiries, contact [email protected] The “ETP Landscape: Monthly Snapshot” provides a summary of ETP assets under management and asset flows at a combined global level as of the most recent month-end period. The ETP (or exchange traded product) category encompasses any portfolio exposure security that trades intraday on an exchange. The data for this report are captured from a number of sources by the BlackRock Investment Institute including provider websites, fund prospectuses, provider press releases, provider surveys, Bloomberg, the National Stock Exchange, Strategic Insight Simfund, Wind and the Bank of Israel. All amounts are reported in US dollars. Net new asset (NNA) flows are derived using daily net asset values and shares outstanding using the most recent data we can capture at month-end. For products with cross-listings, we attribute NNAs and assets under management (AUM) to the primary listings. For Middle East and Africa, NNA data is not available. AUM are derived using shares outstanding and prices at the end of each month (or the closest date available). Where price is not available, we use an approximation. For ETPs listed in Israel, product level detail is not available. Product level information is aggregated by provider, asset class, exposure, region listed and replication method to produce the various analyses in the report. Subscribe To receive the ETP Landscape series of reports at no cost, please subscribe via our website at www.blackrockinternational.com/etflsubscribe. About BlackRock: BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At September 30, 2012, BlackRock’s AUM was $3.673 trillion. BlackRock offers products that span the risk spectrum to meet clients’ needs, including active, enhanced and index strategies across markets and asset classes. Products are offered in a variety of structures including separate accounts, mutual funds, iShares® (exchange traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of September 30, 2012, the firm has approximately 10,400 employees in 29 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at www.blackrock.com.
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Disclaimer (continued)
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Disclaimer (continued)
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16
The opinions expressed are as of February 28, 2013 and may change as subsequent conditions vary.
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Global ETP Monthly Overview
Highlights (US$):1
February Results at a Glance1
February flows of $10.6bn ensured the strongest 2-month start for Equities
Feb 2013
Jan 2013
Dec 2012
Feb 2012
Monthly Flows 10.6
37.0
38.7
15.6
Assets
2,037
2,044
1,944
1,720
# of ETPs
4,798
4,793
4,759
4,560
(US$bn)
Developed Market Equity ETPs continued to exhibit strong momentum in February, gathering $13.0bn. This included $7.3bn in non-US exposures. Sector funds added $4.7bn led by Real Estate with $1.5bn, under the backdrop of improving economic indicators in the US housing markets.
On the heels of a strong risk rally in January, continued purchasing in February brought YTD Equity ETP flows to $47.1bn, the strongest Jan-Feb total on record. The S&P 500 index came close to levels last seen in 2007, even as the US sequester budget negotiations wore on, and some concerns persisted over the durability of the US Federal Reserve’s asset purchase program. Emerging Markets Equity inflows slowed compared to January and High Yield Fixed Income funds experienced outflows as modest yield compression continued. Equity Income in Demand: Dividend focused ETPs gathered $1.6bn in February. The continued appetite for yield is even more evident when adding the $1.5bn from Real Estate and $0.7bn from Preferred Stock ETPs. Duration Rotation: Investors continued to move toward the short end of the Fixed Income yield curve. February inflows into Short Maturity Fixed Income ETPs (including Ultra-Short Term, ShortTerm and Floating Rate) totaled $4.0bn while all other maturities saw collective outflows of ($1.3bn). Gold Loses its Luster: Set against the backdrop of rising Equities, a strengthening US dollar, and US Treasury bonds yield holding below 2%, the investment appetite for Gold has waned. Gold ETP outflows totaled ($5.6bn) and have now reached ($6.8bn) YTD.
Global 13-Month Rolling Net Flows1 2013 YTD Net Flows: $50.0bn (US$bn)
Feb-13
10.6
Jan-13
37.0
Dec-12
38.7
Nov-12
25.7
Oct-12
13.2
Sep-12
45.1
Aug-12
11.6
Jul-12
22.8
Jun-12
20.3
May-12
18.8
Apr-12
0.8
Mar-12
16.4
Feb-12
15.6
($10) $0
$10 $20 $30 $40
Equity
Fixed Income
Commodity / Other
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2
Year-To-Date Global ETP Flows YTD 2013 vs. YTD 2012 Global ETP Flows1 Equities $47.1bn
(US$bn)
YTD 2013: $47.6bn
20.0
YTD 2012: $49.1bn
15.0 10.0 5.0 0.0 -5.0 N. America
Other Developed/ Global
Emerging Markets
YTD-2013 Flows
Fixed Income
Commodities & Other
YTD-2012 Flows
Year-To-Date Highlights (US$):1 Year-to-date Equity ETP flows of $47.1bn are off to a record start in 2013 with a strong showing across a number of exposures. Flows into Developed Markets ex-North America of $16.0bn were well above YTD 2012 when the category registered almost no net inflows. The overall level of asset gathering is slightly off 2012’s record-setting pace due to Gold outflows and moderated inflows into Fixed Income as compared to 2012’s record-breaking levels. North America Equities Lead: YTD 2013 flows of $18.1bn are up ~$5.3bn versus YTD 2012 and are focused in Small Cap, Mid Cap, Dividend Focused, and Sectors. Cyclical Sectors in Favor: Sector ETPs continue to see increased investor demand, taking in another $4.7bn in February. More economically-sensitive sectors such as Real Estate, Financials and Technology remain in favor and lead the category with nearly 52% of February flows. YTD 2013 inflows of $11.0bn are up ~$4.1bn over the comparable period for 2012.
Cumulative Equity ETP Flows1 Year-To-Date 2013 Equity Flows: $47.1bn
180
2012
150
2011
120 90
2010 2013
60 30 0 -30
Jan
March
June
Sept
Dec
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3
Momentum in Minimum Volatility and Dividend Income Average Monthly Flows: Minimum Volatility ETPs1
Highlights (US$):1 Flows into Minimum Volatility (or Low Volatility) ETPs have picked up in 2013. These funds seek to provide exposure to a particular Equity segment like Emerging Markets or Global stocks with a reduced amount of price volatility than traditional market-cap weighted indexes.
(US$mn)
1000 800 600 400
Minimum Volatility funds attracted average monthly flows of $926mn for the first two months of 2013, or more than double the average monthly flows of $416mn in 2012.
200 0 2013
2012
Part of that surge in flows is attributable to the fact that providers are offering more of these funds. There are now 34 Minimum or Low Volatility ETPs available globally, which together hold $8.7 billion in assets. It’s important to note that there are considerable methodology differences in the indexes they track. Some indexes screen out the most volatile stocks, while others take a more dynamic approach to screening for low beta stocks. Investors can use Minimum Volatility ETPs as a means to gain access to equity markets while maintaining some downside protection.
Dividend Dividend Income Equity Income ETP Equity Monthly ETPs Flows1 (US$mn)
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
Jun-11
May-11
Apr-11
Mar-11
Feb-11
Jan-11
3,300 2,800 2,300 1,800 1,300 800 300 -200
ETP investors continued to seek income through Dividend Focused ETPs which gathered $1.6bn in February and $4.5bn YTD, after stalling in Q4 while negotiations over the US fiscal cliff placed tax treatment of dividends in limbo.
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4
Rotation in Fixed Income ETPs Maturity Bucket Analysis YTD Fixed Income Flows: By Duration Category1, 3 +$5.7bn
(US$bn)
($1.2bn)
5.0 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 Floating Rate
Ultra-Short Term
Short-Term
Intermediate
Long-Term
Broad Maturities
Duration Rotation within Fixed Income:1 While there has been speculation that we could be seeing the beginnings of a great rotation from Fixed Income to Equities, the flows in ETPs indicate that we aren’t seeing a “flight” from credit, but rather a rotation into shorter-duration assets. With the 10-year Treasury yield up roughly 12bps from December, investors are considering the impact of rising rates on longer duration Fixed Income securities. In this context, YTD flows into Short Maturity (Ultra-Short Term, Short-Term and Floating Rate) ETPs have escalated to $5.7bn while longer-duration categories have seen outflows of ($1.2bn), including Broad Maturity ETPs that blend a number of maturity categories into a single fund. Most of the short duration inflows came in February, which accounted for $4.0bn of the $5.7bn YTD total.
On a YTD basis, 8 of the top 10 asset-gathering Bond ETPs were either Short-Term or Floating Rate exposures. This represents a departure from both Q4 2012 and full-year 2012 when Short-Term & Floating products composed only 2 of the top 10 asset gathering ETPs. Floating Rate ETPs can be used as a tool to adjust duration in a portfolio, serve as a higher yielding alternative to money market funds, and act as a diversifier within portfolios. These credit instruments can span the investment grade and high yield credit rating categories. Contrary to the shift toward short-term ETP instruments, money market mutual funds have seen net redemptions of ($34.5bn) YTD.2 It appears that investors are rotating money market assets into Equities.
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5
Global ETP Flows by Listing Region
Highlights (US$):1 ETPs listed in the US account for 70% of global ETP assets and 71% of global 2012 net inflows. Year-to-date 2013, flows into US-listed products accounted for 79% of the global total. ETP assets in the US have grown about 5.7%, helped by market price movements with the S&P 500 reaching a psychologically important level of 1500 for the first time since 2007.
February Net Flows by Listing Region1
Asset Growth Rates and YTD Flows1 (US$bn)
US
7.8
Europe
1.4
Bubble size = Assets ($bn)
50
Canada
2013 YTD Flows
40
0.9
Latin America
0.4
US $1,426
30 Europe
20
$375
Asia Pacific
10
Latin America $13
$143 Canada
Asia Pacific
0.1
($5) Equity
$0
Fixed Income
$5
0
$56
-10-5%
$10
0% 5% 2013 AUM Growth
10%
Commodities/Others
Listing Region View (US$bn)1 Net Flows Feb 2013 Assets
% Asset Market Share
Number of Products
47.6
2,037.0
100
4,798
7.8
37.7
1,426.2
70.0
1,444
Europe
1.4
7.9
375.4
18.4
2,135
Canada
0.9
0.4
56.0
2.7
270
Latin America
0.4
0.6
13.0
0.6
35
Asia Pacific
0.1
0.9
143.2
7.0
551
*
*
23.3
1.1
363
By Listing Region
Feb 2013
YTD 2013
Global ETP Total
10.6
US
Middle East and Africa * Not available
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6
Global ETPs and Mutual Funds Monthly Flows Highlights (US$): 1, 2 Developed Equity mutual fund flows shifted from outflows in 2012 to net inflows in 2013. Year-todate, mutual funds have drawn in $36.8bn while Developed Equity ETPs attracted inflows of $36.6bn year-to-date, Fixed Income mutual funds and ETPs enjoyed steady inflows in 2012 which continued into January and then moderated in February. Year-to-date, mutual funds have gathered $56.3bn while Fixed Income ETP flows totaled $4.8bn.
Emerging Markets Equity flows trended higher in December and January for both mutual funds and ETPs. In February, mutual funds gathered $7.6bn while Emerging Markets Equity ETPs saw outflows of ($0.4bn).
Monthly Flows (US$bn)1, 2 Developed Markets Equity 35 25 15
ETP Flows
5
Mutual Fund Flows (5) (15) (25) (35) Jul
Aug
Sep
Oct
Nov
Dec Jan-13Feb-13
Fixed Income
Emerging Markets Equity 16
60 50
12
40 8
30 20
4
10 0
0 (10)
Jul
Aug
Sep
Oct
Nov
Dec Jan-13Feb-13
(4)
Jul
Aug
Sep
Oct
Nov
Dec Jan-13Feb-13
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7
Top 15 New 2013 Global ETPs Ranked by AUM Highlights (US$):1 • 75 new ETPs and 6 individual share class listings debuted around the globe so far this year • 36 products and 3 individual share class listing were delisted so far this year with combined AUM of less than $260mn • One new ETF listed in China captured most of the flow into newly launched ETPs year-to-date Product Name (US$mn)1
Bloomberg Ticker
Exposure
Launch Date
Feb-2013 Assets
Listing Region
ChinaAMC CSI 300 Index ETF
510330 CH
Equity
Jan-13
3,167
Asia Pacific
Samsung KODEX FTSE China A50 ETF
169950 KS
Equity
Jan-13
168
Asia Pacific
Lyxor MTS Spain Gov Bond All-Maturity
ES10 FP
Fixed Income
Feb-13
66
Europe
159921 CH
Equity
Jan-13
41
Asia Pacific
Amundi ETF MSCI Europe Ex Financials
EUXF FP
Equity
Jan-13
41
Europe
ComStage ETF S&P SMIT 40 Index TRN Fund
E129 GY
Equity
Jan-13
39
Europe
NEXT NOTES KOSPI200 Leveraged ETN
2033 JP
Equity
Feb-13
34
Asia Pacific
SMICHI SW
Equity
Feb-13
32
Europe
NEXT NOTES HSI Leveraged ETN
2031 JP
Equity
Feb-13
31
Asia Pacific
Mirae Asset TIGER Beta Plus ETF
170350 KS
Equity
Jan-13
30
Asia Pacific
iPath S&P MLP ETN
IMLP US
Equity
Jan-13
30
US
Gold Shares Covered Call ETN
GLDI US
Commodities
Jan-13
24
US
PIMCO Foreign Currency Strategy ETF
FORX US
Currency
Feb-13
22
US
db x-trackers NIKKEI 225 UCITS ETF
XDJP GY
Equity
Feb-13
19
Europe
2032 JP
Equity
Feb-13
16
Asia Pacific
2013
195
All
Lion SZSE Small and Medium Enterprises Composite Index ETF
UBS-ETF SMI (Share Class)
NEXT NOTES HSI Short ETN
60 additional ETPs Total - 75 ETPs
3,956
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8
Global ETPs Ranked by Year-to-Date Inflows and Outflows
ETPs as of February (US$mn) 1
Bloomberg Ticker
2013 YTD Inflows
Feb-2013 Assets
WisdomTree Japan Hedged Equity Fund
DXJ US
2,843
4,313
iShares MSCI Emerging Markets
EEM US
2,751
50,758
510330 CH
2,607
3,167
VTI US
1,788
27,716
Vanguard FTSE Emerging Markets
VWO US
1,559
60,545
iShares Russell 2000
IWM US
1,414
19,219
Vanguard S&P 500
VOO US
1,149
8,199
Vanguard REIT
VNQ US
999
17,167
PowerShares Senior Loan Portfolio
BKLN US
973
2,474
EFA US
957
41,438
ChinaAMC CSI 300 Index ETF Vanguard Total Stock Market
iShares MSCI EAFE
ETPs as of February (US$mn) 1
Bloomberg Ticker
2013 YTD Outflows
Feb-2013 Assets
SPDR S&P 500
SPY US
(5,942)
125,095
SPDR Gold
GLD US
(4,946)
64,042
iShares S&P/TSX 60 Index Fund
XIU CN
(1,497)
11,164
SPDR Dow Jones Industrial Average Trust
DIA US
(1,298)
10,400
iShares iBoxx $ Investment Grade Corporate Bond
LQD US
(1,117)
24,038
iShares Barclays TIPS Bond
TIP US
(1,026)
21,107
HYG US
(1,020)
15,078
IEI US
(960)
2,134
iShares MSCI Brazil
EWZ US
(959)
8,376
ProShares Ultra 7-10 Year Treasury
UST US
(711)
14
iShares iBoxx $ High Yield Corporate Bond iShares Barclays 3-7 Year Treasury Bond
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9
Global ETP Flows by Exposure: Developed Equity
Exposure (US$mn)
US Size and Style
US Sector
1
Large Cap Mid Cap Small Cap Micro Cap Total Market Extended Market Preferred Stock US Size and Style Total Basic Materials Consumer Cyclicals Consumer Non-cyclicals Energy Financials Health Care Industrials Real Estate Technology Telecommunications Utilities Theme US Sector Total
US Strategy US Total Canada Equity North America Regional Equity North America Total Large Cap Mid Cap Pan European Small Cap Size and Style Total Market Pan European Size and Style Total Pan European Sector Pan European Strategy Pan European Total Germany U.K. Country
Switzerland France
2013 YTD Net Flows
% of 2013 YTD Flows
(2,263)
(2,110)
(4.4)
345,489
17.0
219
Assets
% of Assets
# ETPs
994
2,625
5.5
60,640
3.0
51
1,472
4,757
10.0
60,359
3.0
64
6
37
0.1
617
0.0
4
1,253
3,439
7.2
46,417
2.3
58 3
69
195
0.4
2,321
0.1
463
1,052
2.2
16,305
0.8
5
1,995
9,995
21.0
532,149
26.1
404
(410)
200
0.4
5,405
0.3
14
174
1,048
2.2
11,639
0.6
18
337
111
0.2
8,500
0.4
12
498
1,209
2.5
26,641
1.3
39
609
1,542
3.2
20,970
1.0
37
277
455
1.0
14,493
0.7
28
489
933
2.0
7,818
0.4
17
1,004
1,927
4.1
30,063
1.5
22
99
1,321
2.8
16,201
0.8
31
(7)
(109)
(0.2)
847
0.0
5
161
(44)
(0.1)
8,285
0.4
11
54
115
0.2
1,189
0.1
9
3,284
8,709
18.3
152,050
7.5
243
434
2,143
4.5
50,274
2.5
47
5,712
20,847
43.8
734,472
36.1
694 83
44
(584)
(1.2)
33,183
1.6
102
277
0.6
6,556
0.3
21
5,858
20,540
43.2
774,211
38.0
798
307
1,139
2.4
30,587
1.5
77
7
28
0.1
700
0.0
8
(19)
141
0.3
1,398
0.1
13
(70)
1,170
2.5
26,355
1.3
65
222
2,473
5.2
59,004
2.9
162
(224) 30 31 (302)
(222) 61 2,317 (670)
(0.5) 0.1 4.9 (1.4)
11,164 2,410 72,613 36,694
0.5 0.1 3.6 1.8
158 20 341 63
480
143
0.3
14,271
0.7
51
41
30
0.1
8,736
0.4
22
(151)
(292)
(0.6)
5,150
0.3
19
Others
225
639
1.3
7,902
0.4
74
Europe Single Country Total
293
(151)
(0.3)
72,753
3.6
229
324
2,166
4.6
145,367
7.1
570
293 2,835
1,523 3,836
3.2 8.1
17,024 94,086
0.8 4.6
54 220
3,129
5,359
11.3
111,110
5.5
274
3,662 12,972
8,496 36,562
17.9 76.9
153,945 1,184,632
7.6 58.2
435 2,077
Europe Total Asia-Pacific
Feb-2013 Net Flows
Regional Country
Asia Pacific Total Global & Others Developed Equity Total
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION.
10
Global ETP Flows by Exposure: EM Equity, Fixed Income, & Commodities
Exposure (US$mn)
Broad EM
1
Broad Emerging Markets Broad Frontier Markets Broad EM Total
Regional EM Brazil China India Russia EM Single Country South Korea Mexico Others EM Single Country Total Emerging Markets Equity Total Equity Total Broad/Aggregate Govt/Corp Emerging Markets Municipal Government - Sovereign Government - US Treasury Government Total Fixed Income Inflation High Yield Corporate Investment Grade Corporate Money Market Mortgage Others Fixed Income Total Broad Market Agriculture Energy Industrial Metals Commodities Precious Metals - Gold Precious Metals - Silver Precious Metals - Others Precious Metals - Total Commodities Total Alternatives Volatility Others Alternatives Total Asset Allocation Currency Israel ETP Global ETP Total
Feb-2013 Net Flows
2013 YTD % of 2013 Net YTD Flows Flows
Assets
% of # ETPs Assets
418
7,408
15.6
145,447
7.1
24
71
0.1
405
0.0
105 5
441
7,479
15.7
145,852
7.2
110 79
(57)
282
0.6
10,028
0.5
(527)
(865)
(1.8)
13,499
0.7
45
(406)
1,893
4.0
63,830
3.1
163
(166)
(121)
(0.3)
5,597
0.3
51
13
66
0.1
4,316
0.2
18
(150)
673
1.4
16,635
0.8
111
434
857
1.8
11,589
0.6
18
60
293
0.6
16,933
0.8
132 538
(742)
2,796
5.9
132,399
6.5
(358)
10,557
22.2
288,279
14.2
727
12,615
47,119
99.0
1,472,911
72.3
2,804
295
360
0.8
41,582
2.0
31
1,122
2,137
4.5
21,642
1.1
18
272
618
1.3
20,911
1.0
60
188
557
1.2
13,601
0.7
32
88
823
1.7
38,841
1.9
256
393
(1,840)
(3.9)
31,352
1.5
76
481
(1,017)
(2.1)
70,192
3.4
332
(698)
(280)
(0.6)
33,672
1.7
36
(841)
(11)
(0.0)
38,397
1.9
38
657
1,179
2.5
79,864
3.9
112 20
466
283
0.6
6,641
0.3
121
(183)
(0.4)
8,316
0.4
7
639
1,159
2.4
6,298
0.3
31
2,702
4,800
10.1
341,115
16.7
717
113
560
1.2
19,751
1.0
122
93
436
0.9
6,486
0.3
204
(218)
(774)
(1.6)
8,365
0.4
212
125
347
0.7
2,984
0.1
127
(5,642)
(6,765)
(14.2)
128,223
6.3
111
306
745
1.6
16,738
0.8
66
74
97
0.2
5,387
0.3
83
(5,262)
(5,923)
(12.4)
150,348
7.4
260
(5,149)
(5,354)
(11.3)
187,934
9.2
925
286
679
1.4
2,999
0.1
49
(20)
(57)
(0.1)
2,867
0.1
79
266
622
1.3
5,867
0.3
128
200
412
0.9
3,352
0.2
75
(19)
(25)
(0.1)
4,992
0.2
149
-
-
-
20,857
1.0
-
10,615
47,573
100.0
2,037,027
100.0
4,798
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11
Endnotes
Endnotes Exchange traded products (ETPs) are portfolio exposure securities that trade intra-day on an exchange 1. Data is as of February 27, 2013 for Europe and February 28, 2013 for the US, Canada, Latin America, Israel, and some Asia ETPs. Some Asia ETP data is as of January 31, 2013. Global ETP flows and assets are sourced using shares outstanding and net asset values from Bloomberg for the US, Canada, Europe, Latin America and some ETPs in Asia. Middle East ETP assets are sourced from the Bank of Israel. ETP flows and assets in China are sourced from Wind. Inflows for years prior to 2010 are sourced from Strategic Insights Simfund. Asset classifications are assigned by the BlackRock based on product definitions from provider websites and product prospectuses. Other static product information is obtained from provider websites , product prospectuses, provider press releases, and provider surveys. 2. Mutual fund data is sourced from EPFR (excluding Money Market funds and ETFs). Full year 2012 and January 2013 data is sourced from EPFR monthly data. February 2013 is sourced from EPFR weekly data for the four weeks ended February 27, 2013 3. Two categories (Selected Maturities and Fixed Maturity) are excluded from the maturity profile shown above, which have additional $368mn combined ETP inflows year-to-date. We classify maturity buckets of a Fixed Income ETP if the fund invests at least 70% of its assets in the corresponding maturity/exposure range: Ultra Short-Term: underlying security maturities < 1 year; Short-Term: 1 year < underlying security maturities < 3 years; Intermediate: 3 years < underlying security maturities < 10 years; Long-Term: underlying security maturities > 10 years; Broad Maturities: The fund invests in more than two maturity buckets without emphasizing one; Floating Rate: The fund holds floating rate securities and/or bank loans; Selected Maturities: The fund holds securities with multiple selected range of maturity buckets, i.e. barbell strategy which focus on the specific short-term and long-term buckets with even weights; Fixed Maturity: The fund itself has a target maturity date and arranged holdings correspondingly
Index returns are for illustrative purposes only and do not represent actual Fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
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12
About Us
About the ETP Landscape: Monthly Snapshot report For inquiries, contact [email protected] The “ETP Landscape: Monthly Snapshot” provides a summary of ETP assets under management and asset flows at a combined global level as of the most recent month-end period. The ETP (or exchange traded product) category encompasses any portfolio exposure security that trades intraday on an exchange. The data for this report are captured from a number of sources by the BlackRock Investment Institute including provider websites, fund prospectuses, provider press releases, provider surveys, Bloomberg, the National Stock Exchange, Strategic Insight Simfund, Wind and the Bank of Israel. All amounts are reported in US dollars. Net new asset (NNA) flows are derived using daily net asset values and shares outstanding using the most recent data we can capture at month-end. For products with cross-listings, we attribute NNAs and assets under management (AUM) to the primary listings. For Middle East and Africa, NNA data is not available. AUM are derived using shares outstanding and prices at the end of each month (or the closest date available). Where price is not available, we use an approximation. For ETPs listed in Israel, product level detail is not available. Product level information is aggregated by provider, asset class, exposure, region listed and replication method to produce the various analyses in the report. Subscribe To receive the ETP Landscape series of reports at no cost, please subscribe via our website at www.blackrockinternational.com/etflsubscribe. About BlackRock: BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At September 30, 2012, BlackRock’s AUM was $3.673 trillion. BlackRock offers products that span the risk spectrum to meet clients’ needs, including active, enhanced and index strategies across markets and asset classes. Products are offered in a variety of structures including separate accounts, mutual funds, iShares® (exchange traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of September 30, 2012, the firm has approximately 10,400 employees in 29 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at www.blackrock.com.
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13
Disclaimer (continued)
Regulatory Information BlackRock Advisors (UK) Limited is authorised and regulated by the Financial Services Authority ('FSA'), having its registered office at 12 Throgmorton Avenue, London, EC2N 2DL, England, Tel +44 (0)20 7743 3000. This document has been provided by BlackRock in a private and confidential manner to professional and or institutional investors (as such term is defined according to applicable regulations in the relevant jurisdiction) only upon express request. This document is solely for informational and educational purposes only and represents an assessment of the market environment at a specific time and is not intended to be relied upon by the reader as research, a forecast of future events or a guarantee of future results. This publication does not provide financial, investment or tax advice or information relating to the securities of any particular fund or other issuer. The information and opinions included in this publication are based on publicly available information, are subject to change and should not be relied upon for any purpose other than general information and education. This publication has been prepared without regard to the individual financial circumstances and objectives of those who receive it and the types of securities discussed in this publication may not be suitable for all investors. The information included in this document has been taken from trade and other sources considered to be reliable. This document is published in good faith but no representation or warranty, express or implied, is made by BlackRock or by any person as to its accuracy or completeness and it should not be relied on as such. BlackRock or any of its directors, officers, employees or agents shall have no liability for any loss or damage arising out of the use or reliance on the material provided including without limitation, any loss of profit or any other damage, direct or consequential. Any opinions expressed in this document reflect our analysis at this date and are subject to change. This is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any strategy in any jurisdiction. This document has not been prepared, reviewed or distributed by any broker-dealer affiliate of BlackRock and should not be deemed a product of any such affiliate. BlackRock has not performed any due diligence on products which are not managed by BlackRock and accordingly does not make any remark on their suitability for investment purposes. Past performance is not a guide to future performance . Income is not fixed and may fluctuate. Exposure to foreign currencies can be affected by exchange rate movements. This document or any portion hereof may not be reprinted, sold or redistributed without authorisation from BlackRock Advisors (UK) or its affiliates (together, ‘BlackRock’). This document is not, and under no circumstances is to be construed as an advertisement or any other step in the furtherance of a public offering of shares in the United States. This document is not aimed at persons who are resident in the United States or any province or territory thereof, where the companies/securities are not authorized or registered for distribution and where no prospectus has been filed with any securities commission or regulatory authority. The companies/securities may not be acquired or owned by, or acquired with the assets of, an ERISA Plan. iS-9332-0313
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Disclaimer (continued)
Notice to residents in Australia: Issued in Australia by BlackRock Investment Management (Australia) Limited ABN 13 006 165 975, AFSL 230523 ("BIMAL") to institutional investors only. iShares® exchange traded funds (“ETFs”) that are made available in Australia are issued by BIMAL, iShares, Inc. ARBN 125 632 279 and iShares Trust ARBN 125 632 411. BlackRock Asset Management Australia Limited ("BAMAL") ABN 33 001 804 566, AFSL 225 398 is the local agent and intermediary for iShares ETFs that are issued by iShares, Inc. and iShares Trust. BIMAL and BAMAL are wholly-owned subsidiaries of BlackRock, Inc. (collectively “BlackRock”). A Product Disclosure Statement (“PDS”) or prospectus for each iShares ETF that is offered in Australia is available at iShares.com.au. You should read the PDS or prospectus and consider whether an iShares ETF is appropriate for you before deciding to invest. iShares securities trade on ASX at market price (not, net asset value ("NAV")). iShares securities may only be redeemed directly by persons called “Authorised Participants”. This information is general in nature, and has been prepared without taking into account any individual's objectives, financial situation, or needs. You should seek independent professional legal, financial, taxation, and/or other professional advice before making an investment decision regarding the iShares funds. For investors in Canada: The information and opinions herein are provided for informational purposes only, are subject to change and should not be relied upon as the basis for investment decisions. Past performance is not necessarily indicative of future performance. This document is not and should not be construed as a solicitation or offering of units of any funds or other security in any jurisdiction. No part of this publication may be reproduced in any manner without prior written permission of BlackRock Asset Management Canada Limited and/or its affiliates. For investors in Hong Kong: Some of the funds mentioned herein have not been registered with the Securities and Futures Commission for offering or distribution in Hong Kong. Accordingly, this material may not be circulated or distributed, nor may the funds be offered or sold whether directly or indirectly, to any person in Hong Kong other than to a Professional Investor as defined in the Securities and Futures Ordinance ("SFO") (Cap. 571 of the laws of Hong Kong) and any regulations there under. Notice to residents in India: This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to financial intermediaries only upon their request. The funds mentioned herein have not been registered with any authorities in India. Notice to residents in Japan: This document is solely for educational purposes and does not constitute advertisement of financial services targeted at investors in Japan. This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to Qualified Institutional Investors (as defined in the Financial Instruments and Exchange Law of Japan) only upon their request.
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Disclaimer (continued)
For institutional and professional investors only in Latin America: In Latin America, for Institutional and Professional Investors only. This material is solely for educational purposes only and does not constitute an offer or a solicitation to sell or a solicitation of an offer to buy any shares of any securities (nor shall any such securities be offered or sold to any person) in any jurisdiction within Latin America in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction. It is possible that all or some of the funds mentioned or inferred to in this material have not been registered with the securities regulator of Brazil, Chile, Colombia, Mexico and Peru or any other securities regulator in any Latin American country, and thus, might not be publicly offered, purchased or sold within any such country. The securities regulators of such countries have not confirmed the accuracy of any information contained herein. No information discussed herein can be provided to the general public in Latin America. Notice to residents in Singapore: This document is provided by BlackRock (Singapore) Limited (company registration number: 200010143N) for use with institutional investors only. This document has not been registered as a prospectus with the Monetary Authority of Singapore (MAS). Some of the funds mentioned herein have not been registered with the MAS for distribution in Singapore. Accordingly, this and any other document or material in connection with the offer or sale of the Shares may not be circulated or distributed, nor may the Shares be offered or sold, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor pursuant to Section 304 of the Securities and Futures Act (SFA) or (ii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. First sales of the Shares acquired pursuant to Section 304 of the SFA are subject to the requirements under Section 304A of the SFA. Notice to residents in Thailand: This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The funds mentioned herein have not been registered with any authorities in Thailand, and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in Thailand. Notice to residents in Vietnam: This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The funds mentioned herein have not been registered with any authorities in Vietnam, and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in Vietnam.
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16
