Growing numbers in 2011 for exchange traded funds. With 90 listed products, the number of ETFs has reached 570 (net of 21 delistings). There was also no shortage of news, with the debut of 12 Etn, the Exchange trades notes, which are issued by Etfs Foreign Exchange Limited and aim at the passive replication of indices on currencies of the Msfx family, calculated and published by Morgan Stanley. The ETNs, which allow you to hedge against currency risk using an overall inexpensive instrument, have in some cases given a yield of up to 48,4% (we are talking about the ETFs 3x Long Jen Short Euro). Overall trades in all three categories (ETFs, ETCs, ETNs) rose to record levels with a value of 338,2 million euros and 14.273 contracts per day on average. The total value in 2011 rose to 85,2 billion euro with 3,6 million contracts traded. Of course, in terms of assets under management, ETFs and ETCs were also affected by market trends, above all for the numerous funds indexed to stock markets. Which ETFs and ETCs did best in 2011? And which are the worst?
Among the ETFs, those who bet on the decline of the banks have defeated the competition. Short equity category Lyxor Stx Europe 600 Banks Daily Short climbed 31,8% for best-ever result (yields net of dividends), closely followed by equity short db Stoxx Banks Short which made 31,2%. But the iShares EBrex Pfan corporate bond (+29,8%) and the short leveraged ETF Lyxor XBear Ftse Mib (+26,5%) also did well. At a further distance in the ranking, ETFs also stood out which replicated the performance of some non-Euro government bonds such as British Gilts (iShares FtseUk AsGilt +16,7%) and T-bills (iShares Barcap $ TB 7-10 +16,4%).
Among the worst, however, we find those who bet on Greece with Lyxor Msci Greece which lost 64,6% and on Vietnam with the db Ftse Vietnam which left 50,2% in the field. But also the structured leveraged long Lyxor Lev Ftse Mib which lost 53,7%, the Etfs Ftse Mib Lev 2x fund which lost 51,6%, the Etf iShares S&P Ci Energy (-42,8%) and the Etfs Dax 2x Long fund (-40,3%).
Looking at the individual categories, it can be seen, as expected, that the standard equity ETFs have almost all brought home negative performances. In fact, negative returns were recorded for all ETFs in the central/southern emerging equities, the African emerging equities, the Asia emerging equities, the Eastern European emerging equities, the emerging world equities, the Euro area European equities, the single country equity, the Pacific equity and the Italian equity. Here, in detail, the worst performance is from the Lyxor Ftse Mib (-27,3%) while the Lyxor Global Titans 50 (-0,2%) limits the damage. Still among the standard ETFs, the North American stock gave more satisfaction: the Lyxor DJ Ind Average rose by 9,8% and the Amundi Nasdaq 100 by 4,1%, while those who replicated indexes on the Canada such as Lyxor Canada (A) dropped 13,2%.
At sector level, ETFs on healthcare (+8,4% Lyxor Stoxx Healthcare and + 11,7% db Stoxx Healthcare Tr), food (+2,3% Lyxor Stoxx Food & B and + 4,3% the db Stoxx Food &B Tr). In double-digit decline, above all the funds that replicated indices linked to banks, auto, construction and industrial. Funds linked to oil and gas indices held.
Overall more favorable results for the liquidity and bond categories: ETFs on indices linked to non-euro government bonds were positive (as mentioned, the t-bonds and gilts shone) and corporate bonds also did well overall with only two slightly negative negative ETFs (iShares Barcap Euro CB -0,1% and iShares Markit iBoxx E HY -1,5%) while, as mentioned, the iShares EBrex Pfan stood out at an absolute level, followed at a distance in the category by the iShares markit iBoxx $ (+7,1%). In terms of funds linked to indexes on government bonds in euro, securities at the center of the storm of the debt crisis, only four products have archived negative performances, even if the returns have been modest. In particular, the best performer was the iShares Barcap EGB 7-10 with a +8,4%, followed by the Lyxor EuroMts Aaa Gov. B. with + 7,3%. The worst performer was Lyxor EuroMts 10-15Y down 2,6%.
Mixed performances on the real estate front: the best is the iShares Ftse Epra Us Prop (+13,1%) and the worst is the iShares Ftse EpraAsia prop (-17,2%).
Among the structured ones, equity shorts did better (including those that bet downwards on banks) and leveraged shorts (the aforementioned Lyxor XBear Ftse Mib but also the Etfx Ftse Mib Sshort Str. 2x +23%). The leveraged longs were almost all negative with the exception of the db Shortdax x2 Daily (+13,2%) and the Db Eustx50 Doubshrt Dai (+11,8%).
On the ETC front, the best ones concern short strategies: the Etfs Natgas Short achieved a rise of 61,2% aiming down on natural gas, the Etfs Platinu sht +24,2, down on platinum, and ETFS Copper Sht +19,4%, bearish on copper. Naturally, among the worst are the long ETCs on the same commodities such as the leveraged ETC Etfs Natgas Lev -71,4% the Etfs Natural Gas -43,1%. Also the ETFs wheat lev (-63,2%) with long leverage on wheat were bad. Also among the best are the funds linked to oil and petrol indices: the Etfs Brent 1mth Oil rose by 19,8% and the Etfs Gasoline by 15,6%. Then there are the products in the industrial metals category with declines between 23% and 26%, while ETFs linked to indices in the precious metals category do not give great satisfaction either, with the exception of gold. Among the best in the category, Db phisical Gold rose by 10%, Etfs Ph Gold by 10%, Lyxor Gold Bull Sec by 9,9%.
