Week of February 7, 2022 KPI Summary
- This week, the industry experienced 12 ETF launches and 3 closures, shifting the 1-year Open-to-Close ratio to 5.11 and total US ETFs to 2,851.
- Valentine’s Day spending is expected to reach $23.9 billion in 2022, the second-highest year on record, according to the National Retail Federation. As Valentine’s Day gets more expensive for Americans, let’s take a glance at the most expensive ETFs and how they are faring in 2022.
- Examining ETFs with expense ratios of 0.75 and higher (which make up approximately 19% of total US ETFs), they are returning -4.00% YTD on average, slightly outperforming the industry at -4.56%.
- The 546 ETFs that charge 75 bps or more make up approximately 2.55% of the industry (~$175 Billion), though it is top heavy with the largest 5 totaling $47.3 Billion in assets (26.9% of the $175 Billion).
- Though a third of these expensive ETFs are in the Equity category, Geared/Swaps and Options both made up about a quarter of the total number of ETFs each with 139 and 130, respectively. This makes sense with Options ETFs averaging an ER of 0.68 and Geared/Swaps ETFs averaging 0.71 (and a weighted ER of 0.86).
- On the other hand, there were zero Commodities Physical ETFs at +0.75 ER and only 16 Fixed Income (3.49% of all Fixed Income ETFs).
- Lastly, Active funds combine for 49.8% of these expensive ETFs while making up 28.1% of the current industry overall. Non-traditional makes up 40.7% with Traditional filling in the remaining 9.5% of the 546.
- The highlighted indexes experienced differing performance last week. The Toroso ETF Industry Index was down -1.52% while the S&P Financial Select Sector Index led at 0.02%.
FIS Biblically Responsible Risk Managed ETF (ticker: PRAY)
Valkyrie Bitcoin Miners ETF (ticker: WGMI)
AdvisorShares Let Bob AI Powered Momentum ETF (ticker: LETB)
Innovator Laddered Allocation Buffer ETF (ticker: BUFB)
IQ Global Equity R&D Leaders ETF (ticker: WRND)
IQ US Large Cap R&D Leaders ETF (ticker: LRND)
IQ US Mid Cap R&D Leaders ETF (ticker: MRND)
iShares Paris-Aligned Climate MSCI USA ETF (ticker: PABU)
Build Bond Innovation ETF (ticker: BFIX)
Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (ticker: GLOV)
Harbor All-Weather Inflation Focus ETF (ticker: HGER)
Xtrackers Risk Managed USD High Yield Strategy ETF (ticker: HYRM)
Legg Mason Global Infrastructure ETF (ticker: INFR)
Cabot Growth ETF (ticker: CBTG)
Fat Tail Risk ETF (ticker: FATT)
Amplify International Online Retail ETF (ticker: XBUY) became
Amplify Emerging Markets FinTech ETF (ticker: EMFQ)
Roundhill Investments The Metaverse ETF (ticker: META) became
Roundhill Ball Metaverse (ticker: METV)
TETF.Index Performance vs. S&P Financial Select Sector Index
(as of February 11, 2022)
Source: Morningstar Direct
Why Follow the ETF Industry KPIs
The team at Toroso Investments began tracking the ETF Industry Key Performance Indicators (KPI’s) in the early 2000’s and have been consistently reporting on, and analyzing these metrics ever since. The table above was the impetus for the creation of the TETF.Index, the index that tracks the ETF industry. Each week, we will share the statistics we believe to be the most useful for identifying industry trends, in addition to the performance of the TEFT.Index.
Past performance is no guarantee of future returns. This article is for informational and educational purposes only; is not intended to constitute legal, tax, accounting or investment advice; and does not constitute an offer to sell or a solicitation of an offer to buy any security or service. Furthermore, the Indexes shown above are not investable. While Toroso has gathered the information presented from sources that it believes to be reliable, Toroso cannot guarantee the accuracy or completeness of the information presented and the information presented should not be relied upon as such. Any opinions expressed are Toroso’s opinions and do not reflect the opinions of any affiliates or related persons. All opinions are current only as of the date of initial publication and are subject to change without notice. All investment strategies and investments involve risk of loss, including the possible loss of all amounts invested.