ETF Industry KPI – 8/29/2022

Week of August 22, 2022 KPI Summary

• This week, the industry experienced 8 ETF launches and 1 closure, shifting the 1-year Open-to-Close ratio to 3.76 and total US ETFs to 3,003.
• The 3,000+ ETF threshold has finally been crossed! When the ETF Think Tank started our Security Master in February 2018, there were 2,144 ETFs for our first KPI graphic. It has been a journey since the first ETF ‘SPY’ in 1993, then crossing 100+ US ETFs by 2001, and then 2000+ sometime in 2017. Approximately 5 years later, we have crossed the 3,000 ETF mark and nearly doubled in AUM ($3.58 Tn in February 2018, to $6.58 Tn August 2022).
  • In 2018 (2/5/2018 – 12/31/2018), total ETFs: +13
  • In 2019, total ETFs: +145
  • In 2020, total ETFs: +13
  • In 2021, total ETFs: +486
  • In 2022 thus far, total ETFs: +200
• Since total ETFs crossed 2000+ mid-2017 which is 5 years ago, let’s take a quick look at funds with 5-year performance track records in our Security Master and how they stack up.
  • Of the top 30 performing ETFs, 17 funds are Equities, 11 Geared/Swaps, and 2 Commodities Derivative. Technology Sector ETFs constitute 14 of the 30 as well.
    • With that said, the top overall and Geared/Swaps performer is Direxion Daily Technology Bull 3X ETF (TECL) with +34.4% change.
    • The top performing Equity ETF is Invesco Solar ETF, TAN, with +32.8% change.
    • The top Commodities Derivative ETF is United States 12 Month Natural Gas (UNL) with +22.9% change.
  • The largest fund in assets of the top 30 performers is Vanguard Information Technology ETF (VGT) at $45.08 Billion, and of the top 50, it is Invesco QQQ Trust (QQQ).
  • Also worth noting that there are no Active management ETFs in the top 50, and only 3 in the top 100.
• Both indexes experienced significant change over 5-years. Toroso ETF Industry Index is up 12.26% while the S&P Financial Select Sector Index trails at 8.61%.

ETF Launches

iShares 20+ Year Treasury Bond Buywrite Strategy ETF (ticker: TLTW)
iShares High Yield Corporate Bond Buywrite Strategy ETF (ticker: HYGW)
iShares Investment Grade Corporate Bond Buywrite Strategy ETF (ticker: LQDW)
Invesco Agriculture Commodity Strategy No K-1 ETF (ticker: PDBA)
AdvisorShares MSOS 2x Daily ETF (ticker: MSOX)
Amplify Natural Resources Dividend Income ETF (ticker: NDIV)
Inspire Fidelis Multi Factor ETF (ticker: FDLS)
iShares Neuroscience and Healthcare ETF (ticker: IBRN)

ETF Closures

Morgan Creek Exos SPAC Originated ETF (ticker: SPXZ)

Fund/Ticker Changes

None

TETF.Index Performance vs. S&P Financial Select Sector Index
(as of August 26, 2022)

TETF.Index Performance vs. Other Leading Financial Indices
(March 31, 2017 through August 26, 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.

DISCLAIMER

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.