Markit ETP February 5th 2014 Monthly ETP launch report Asia newly listed ETFs dominate inflows Our first monthly report highlighting new fund launches in January and asset growth in funds launched in the final month of last year  January saw 42 new fund launches, up significantly from the 28 funds launched in December  North American listed funds regained the regional crown with 27 newly listed funds but the majority of newly launched funds had global exposure  Asian funds topped the December performance table with three of the top four newly launched funds having recorded the largest inflows in January January new listings December Flows The first few weeks of the year were dominated by emerging market upheaval which saw investors sell emerging market funds and flee developing country exposure at a record rate. The timing of this seems to have come at an unfortunate time for ETF issuers as January saw nine newly launched funds exposed to emerging markets. December proved to be a slow month for fund launches with only 28 funds launching over the month. With the exclusions of the four iShares US focused Japanese Depositary Receipts, these newly launched funds managed to attract $577m of assets in January. The two broad emerging market equity funds launched in January aim to set themselves apart from the existing crop of funds by filtering index constituents to pick “quality” and “high dividend” paying shares. Whether this theme hits a note with investors remains to be seen, but the Quality MSCI index (QEM) has outperformed the overall Emerging Market index year to date. The asset flows into this fund will be revisited in next month’s piece. Another trend noticed in January’s newly launched funds is the thirst for global diversification by North American investors. This is seen by the fact that a majority of the 27 listed Americas funds have non North American exposure. Asia topped the December fund performance and it comes as no surprise that these funds have taken the largest share of flows in the last four weeks at $287m. These inflows were mainly concentrated towards the three funds which collectively had $290m if inflows led by the South Korea bond exposed Ariang Short Term Bond ETF which saw $152m of inflows in December. Interestingly, Chinese ETF investors reduced their exposure to US focused shares with the Bosera S&P 500 fund seeing nearly $18m of outflows, a quarter of the assets it had at the start of the year. Further afield, Lyxors UCIT EUROSTOXX Banks saw $147m of inflows, the only non-Asian fund to crack the top four largest fund inflows for last month’s crop of listings. . Markit ETP Monthly Overview – September 2013 Funds Launched in January by Geographic Exposure Funds Launched in January by Asset Class Alternative Equity United States Fixed Income Emerging Markets Japan Global 3 8 11 China 17 2 2 Europe Others 3 28 5 5 January New Launch Strategies State Street Global Advisors and MFS Investment Management formed a partnership to launch three new ETFs. SYE, SYG, and SYV were created to provide investors with portfolio resiliency through full market cycles. on high income stocks through the use of an active management strategy along with index options. FTLB also uses this unique combination while also using covered call options on the S&P 500 index to produce additional cash. First Trust launched three funds with a focus on Income. 2013 was a rough year for Income strategy ETFs but First Trust hopes to provide an innovative strategy towards the Income market. RDVY provides investors with access to companies that have a history of raising dividends. FTHI focus’ . Deutsche Bank launched three currency hedged ETFs with an international exposure. DBAW provides global exposure while DBKO and DBMX are more niche, with exposure to Korean and Mexican stocks, respectively Markit ETP monthly overview – November 2013 December Overview Millions Fund Flows By Asset Class per Region $300 $250 $200 Europe $150 APAC $100 Americas $50 $0 Alternative Currency Equity Fixed Income December Listed Funds Total Inflows (As of 01/27/2013) Americas APAC Europe Total Per Asset Class Alternative $29.6m - - $29.6m Currency $5.05m - - $5.05m Equity $53m $53.6m $147.7m $254.3m Fixed Income $50.01M $234.1m - $284.1m Total Per Region $137.7m $287.7m $147.7m $573 m Millions Asset Flows by Investment Exposure $250 $200 $150 $100 $50 $0 -$50 \2 Markit ETP monthly overview – November 2013 Januarys Newly listed ETPs Americas listed: ETP name Ticker Listing country Launch date Asset class AdvisorShares Sage Core Reserves ETF HOLD United States 2014-01-15 Fixed Income United States DBAW United States 2014-01-23 Equity Global Ex US DBKO United States 2014-01-23 Equity South Korea db X-trackers MSCI Mexico Hedged Equity Fund DBMX United States 2014-01-23 Equity Mexico Direxion Daily FTSE Europe Bear 3x Shares EURZ United States 2014-01-15 Equity Europe Direxion Daily FTSE Europe Bull 3x Shares EURL United States 2014-01-15 Equity Europe Direxion Zacks MLP High Income Shares ZMLP United States 2014-01-23 Equity United States EGShares TCW EM Long Term Investment Grade Bond ETF LEMF United States 2014-01-08 Fixed Income Emerging Markets EGShares TCW EM Intermediate Term Investment Grade Bond ETF IEMF United States 2014-01-08 Fixed Income Emerging Markets EGShares TCW EM Short Term Investment Grade Bond ETF SEMF United States 2014-01-08 Fixed Income Emerging Markets First Trust NASDAQ Rising Dividend Achievers Fund RDVY United States 2014-01-07 Equity United States First Trust Low Beta Income Fund FTLB United States 2014-01-07 Alternative United States First Trust High Income Fund FTHI United States 2014-01-07 Alternative United States Horizons BetaPro MSCI Japan Bear Plus ETF HPD Canada 2014-01-14 Equity Japan Horizons BetaPro MSCI Japan Bull Plus ETF HPU Canada 2014-01-14 Equity Japan Market Vectors MSCI Emerging Markets Quality ETF QEM United States 2014-01-21 Equity Emerging Markets Market Vectors MSCI Emerging Markets Quality Dividend ETF QDEM United States 2014-01-21 Equity Emerging Markets Market Vectors MSCI International Quality Dividend ETF QDXU United States 2014-01-21 Equity Global Market Vectors MSCI International Quality ETF QXUS United States 2014-01-21 Equity Global Market Vectors Short High-Yield Municipal Index ETF SHYD United States 2014-01-14 Fixed Income United States PIMCO Low Duration Exchange-Traded Fund LDUR United States 2014-01-22 Fixed Income United States PIMCO Diversified Income Exchange-Traded Fund DI United States 2014-01-22 Fixed Income United States db X-trackers MSCI All World ex US Hedged Equity Fund db X-trackers MSCI South Korea Hedged Equity Fund Investment exposure \1 Markit ETP monthly overview – November 2013 PowerShares NYSE Century Portfolio NYCC United States 2014-01-15 Equity United States SPDR MFS Systematic Value Equity ETF SYV United States 2014-01-08 Equity United States SPDR MFS Systematic Growth Equity ETF SYG United States 2014-01-08 Equity United States SPDR MFS Systematic Core Equity ETF SYE United States 2014-01-08 Equity United States Vident Core U.S. Equity ETF VUSE United States 2014-01-20 Equity United States ETP name Ticker Listing country Launch date Asset class Investment exposure Amundi ETF Russell 2000 UCITS ETF RS2U France 2014-01-07 Equity United States Amundi ETF Russell 2000 UCITS ETF RS2K France 2014-01-07 Equity United States CSOP Source FTSE China A50 UCITS ETF CHNA United Kingdom 2014-01-03 Equity China db x-trackers Harvest CSI 300 ETF RQFI Germany 2014-01-08 Equity China db x-trackers Mittelstand & MidCap Germany UCITS ETF (DR) XDGM Germany 2014-01-09 Equity Germany Germany 2014-01-29 Equity North America 2014-01-13 Fixed Income Switzerland Europe listed: db x-trackers MSCI North America High Dividend Yield Index UCITS ETF (DR) iShares Swiss Corporate Bond (CH) CHCORP Switzerland Lyxor ETF Daily Double Short 10Y Japan Govt JGBS Bonds France 2014-01-20 Fixed Income Japan Lyxor ETF Daily Double Short 10Y US Treasury DSUS France 2014-01-20 Fixed Income United States PIMCO Covered Bond Source UCITS ETF COVR Germany 2014-01-13 Fixed Income Eurozone Source Goldman Sachs Equity Factor Index World UCITS ETF EFIW United Kingdom 2014-01-20 Equity Global VOLATILITY US ENHANCED THEAM EASY UCITS ETF EVUSE France 2014-01-06 Alternative United States ETP name Ticker Listing country Launch date Asset class Investment exposure Listed Index Fund JPX Nikkei Index 400 1592 Japan 2014-01-27 Equity Japan NEXT FUNDS JPX-Nikkei Index 400 Exchange 1591 Traded Fund Japan 2014-01-24 Equity Japan UBS IQ Research Preferred Australian Dividend Fund Australia 2014-01-15 Equity Australia APAC listed: DIV \2 Markit ETP monthly overview – November 2013 Decembers Newly Listed Performance Americas listed: AUM Growth Total Asset Flow ETP name Ticker Listing country Launch date Asset class Cambria Foreign Shareholder Yield ETF FYLD United States 2013-12-03 Equity UBS E-TRACS Monthly Pay 2xLeveraged Closed-End Fund ETN CEFL United States 2013-12-10 Alternative WisdomTree Government/Corporate AGND Bond Negative Duration Fund United States 2013-12-18 Fixed Income -2% WisdomTree Short-Term High Yield Bond Negative Duration Fund HYND United States 2013-12-18 Fixed Income -3% iShares Liquidity Income ETF ICSH United States 2013-12-13 Fixed Income 67% WisdomTree Government/Corporate AGZD Bond Zero Duration Fund United States 2013-12-18 Fixed Income 0% WisdomTree Short-Term High Yield Bond Zero Duration Fund HYZD United States 2013-12-18 Fixed Income 0% SPDR MSCI EM Beyond BRIC ETF EMBB United States 2013-12-04 Equity 42% WisdomTree Bloomberg U.S. Dollar Bullish Fund USDU United States 2013-12-18 Currency 16% WisdomTree Japan Interest Rate Strategy Fund JGBB United States 2013-12-18 Alternative -1% Recon Capital NASDAQ-100 Covered QYLD Call ETF United States 2013-12-12 Alternative -1% 442% 4% $ 44,056,000 $ 24,600,000 $ 10,010,100 $ 10,008,100 $ 9,998,000 $ 9,996,100 $ 9,996,100 $ 8,945,000 $ 5,054,000 $ 4,994,100 $ - Europe listed: Total Asset Flow ETP name Ticker Listing country Launch date Asset class AUM Growth LYXOR UCITS ETF EUROSTOXX BANKS - C-EUR BNKE France 2013-12-17 Equity 113% $ Germany 2013-12-19 Equity 3% United Kingdom 2013-12-12 Equity 1% db x-trackers IBEX 35 Index UCITS ETF 1D iShares Euro Stoxx 50 ex Financials UCITS ETF (EUR) EXFN 147,708,317 $ - $ - APAC listed: Launch date Total Asset Flow ETP name Ticker Listing country Asset class AUM Growth Arirang Short Term Bond ETF 190160 South Korea 2013-12-19 Fixed Income 123% $ 152,493,572 KINDEX Money Market ETF 190620 South Korea 2013-12-19 Fixed Income -15% $ 81,611,164 Bosera FTSE China A50 ETF 82832 Hong Kong 2013-12-04 Equity 18% $ 69,638,843 Arirang MSCI ACWI ETF 189400 South Korea 2013-12-06 Equity -23% $ 18,654,580 \3 Markit ETP monthly overview – November 2013 First Metro Philippine Equity ETF FMETF Philippines Arirang Barbell Bond ETF 190150 Lion SZSE CSI 500 Index ETF 2013-12-02 Equity 6% $ 857,339 South Korea 2013-12-19 Fixed Income - $ - 510520 China 2013-12-26 Equity - $ - China Huaan CSI Health Care ETF 512120 China 2013-12-04 Equity -14% $ (5,599,580) China Huaan CSI Real Estate ETF 512110 China 2013-12-04 Equity -39% $ (12,239,320) Bosera S&P 500 ETF 513500 China 2013-12-05 Equity -25% $ (17,756,618) \4 Simon Colvin James Hohorst Analyst Markit Tel: +44 207 7614 Email: [email protected] Associate Markit Tel: +1 646 679 3012 Email: [email protected] For further information, please visit www.markit.com