- This week, the industry experienced 10 ETF launches and no closures, shifting the 1-year Open-to-Close ratio to 5.09 and total US ETFs to 2,885.
- On March 11, 2020, the WHO declared COVID-19 a global pandemic. As we cross the 2-year mark, let’s take a look back at the ETF industry since then.
- Total Assets are up 74.5% over the past 2-years, there is an increase of 569 ETFs to total US ETF count (2,878) with 423 in the past 12-months, and 109 additional issuers by brand (a 75.1% increase).
- From our 11 asset class categories, Options increased the most (9%) with 140 new funds in that category and Commodities Derivative just behind with 408.0% growth but only 1 new fund in that category, which really highlights the performance! Volatility had the worst performance (-34.8%).
- The two largest asset classes of Equity (77.08% of assets) and Fixed Income (17.78%) rose 4% and 41.3% respectively. Equity increased its share of ETF assets by +3.7% while Fixed Income dropped -4.2%.
- ETF expense ratio 12-month revenue rose from $6.84 Billion to $11.66 Billion. Additionally, Non-Traditional’s share of 12-month revenue rose by 2%, Active followed with a +4.0% increase, and, as a result, Traditional trended the other way with a -9.3% dip.
- Through all the market volatility, turmoil, and recovery, the ETF industry has progressed to a level of growth in the past 24-months that would have been hard to see on March 11, 2020. As the world has different disruptions and issues today than two years ago, it will be interesting to see how the ETF industry preserves and advances.
- The tracked indexes actually had similar experiences in the COVID pandemic thus far. The Toroso ETF Industry Index is up 32.7% while the S&P Financial Select Sector Index trails at 29.2%.
iPath® Shiller CAPE® (ticker: CAPD) ticker change from CAPE
First Trust High Income Strategic Focus ETF (ticker: HISF) ticker change from FDIV
Dividend Performers ETF (ticker: IPDP) converted from mutual fund
Preferred-Plus ETF (ticker: IPPP) converted from mutual fund
Simply Managed Futures Strategy ETF (ticker: CTA)
Innovator Buffer Step-Up Strategy ETF (ticker: BSTP)
Innovator Power Buffer Step-Up Strategy ETF (ticker: PSTP)
VanEck Digital Assets Mining ETF (ticker: DAM)
iShares iBonds 2028 Term High Yield & Income ETF (ticker: IBHH)
iShares iBonds 2029 Term High Yield & Income ETF (ticker: IBHI)
TETF.Index Performance vs. S&P Financial Select Sector Index
(as of March 11, 2022)
TETF.Index Performance vs. Other Leading Financial Indices
(March 31, 2017 through March 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.