The Markets November 6, 2014

Worldwide ETF Assets Fell in September

Worldwide, exchange-traded fund (ETF) assets fell in September to $2.6 trillion, as all major regions excluding Canada saw a slight decline in assets.
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ETFs worldwide collected $7.8 billion in net new flows, 70% lower than the prior month, according to Strategic Insight, an Asset International company. Equity ETFs raised $12 billion (more than $16 billion from the U.S. offset by outflows in Asia and Europe), while Bond and ‘Other’ ETFs saw $0.5 billion and $3.5 billion in net redemptions.

At the category level, Equity U.S. – Large Cap ETFs led with $12 billion, followed by Equity U.S. – Mid/Small Cap ($2.6 billion), and Equity Global – Large Cap ($2 billion). Meanwhile, Equity Germany experienced outflows of $3.6 billion in September.

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In the U.S., the top selling ETFs in September were SPDR S&P 500 ETF, iShares Core S&P MdCp ETF and Vanguard Total Bond Market Index-ETF.

Thirty-five new ETFs launched in September garnered $633 million in net flows. Lyxor UCITS ETF Nikkei JPX-400 (listed on Euronext Paris and London Stock Exchange) collected the most with $160 million.

Db X-trackers introduced four new smart beta ETFs that weight stocks on the MSCI World Index based on earnings quality, momentum, value, and low beta. Leading European ETF provider Source also launched its first ETF in the US, Source EURO STOXX 50 ETF and raised $46 million.

The Strategic Insight Flow Watch report for September is here.

Diversions November 6, 2014

Connected Cars Are on the Rise

Who’s most attracted to the wired, connected car? The answer may surprise you. Hint: he might have been rocking out at Woodstock back in the day.
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Whether it’s a feature as straightforward as streaming audio or a car interior that’s a wired hotspot, connected car systems are here. And the biggest users are not Gen Y, those never-offline lovers of tech, but male Baby Boomers, a Nielsen survey says.

Of the 44% of the potential buyers contemplating a new auto purchase within the next two years, a majority (39%) are very likely to buy a connected car with built-in features. Three out of five potential buyers want a connected car so they can “experience emerging technologies.” More than half (58%) feel it will provide entertainment to passengers, and 43% say it will boost productivity while they’re on the road.

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Most connected car users (58%) are men, the survey finds. More than four in 10 of this male population (42%) are 55 or older. Many have at least one college degree (62%), and 37% make more than $100,000 per year.

Safety is among highest-ranking features buyers look for in a connected car. Among potential buyers, 79% believe a vehicle’s safety features will make them feel safer while on the road. Users of connected car technologies also value crash notifications (64% rank this “very important”), Internet-enabled navigation (58%) and safety alerts (51%).

Drivers use connectivity for entertainment about one-third of the time, with about a third (36%) of connected car users streaming audio every time they were in their car. More than one in four (26%) connect to the Internet every time they’re in their car, and 41% say they connect “regularly.” More than one in five (21%) use connectivity to download media every time they’re in their car, and more than one in four (27%) do so regularly.

Among other findings:

  • More than a third (37%) of connected car users spend 30 minutes to an hour in their cars regularly;
  • Nearly a fourth of all music listening each week takes place behind the wheel, according to Nielsen’s latest Music 360 report; and
  • Forty-six percent of connected car users use driving analytics and 41% use wireless hotspots every time they’re on the road.

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