Week of February 20, 2023 KPI Summary
- This week, the industry experienced 7 ETF launches and 8 closures, shifting the 1-year Open-to-Close ratio to 2.47 and total US ETFs to 3,120.
- After a fantastic month for the ETF industry in January, February experienced a downturn in assets. As a result, today’s blog will touch on February’s KPI review (comparing 1/30/23 to 2/27/23).
- Total assets decreased -2.6%, there was an increase of 18 ETFs to total US ETF count (3,120), and 0 additional issuers by brand.
- Despite a decent drop in assets, the ETF expense ratio annual revenue only dropped from $11.64 Bn to $11.50 Bn.
- Revenue from Active Management took a jump from 12.2% to 12.9% in the 4 weeks.
- The open-to-close ratio dropped from 2.77 to 2.47. It hasn’t been this low since August 2021.
- Even though February was mediocre for assets, the industry is still looking good in 2023 with January’s surge. We’ll see how the industry can bounce back in March, which it typically does. For example, 2022 only had back-to-back negative performing months once (August and September).
- The tracked indexes had similar experiences in February. The Toroso ETF Industry Index was down -1.02% while the S&P Financial Select Sector Index led at -0.32%.
iShares J.P. Morgan Broad USD Emerging Markets Bond ETF (ticker: BEMB)
MicroSectors™ Gold -3X Inverse Leveraged ETN (ticker: DULL)
FT Cboe Vest U.S. Equity Moderate Buffer ETF – February (ticker: GFEB)
Horizon Kinetics Energy Remediation ETF (ticker: NVIR)
Global X Nasdaq 100 ESG Covered Call ETF (ticker: QYLE)
MicroSectors™ Gold 3X Leveraged ETN (ticker: SHNY)
Global X S&P ESG Covered Call ETF (ticker: XYLE)
APEX HealthCare ETF (ticker: APXH)
ELEMENTS MLCX Biofuels Exchange Series Total Return ETN (ticker: FUE)
iPath® Gold ETN (ticker: GBUG)
iPath® S&P MLP ETN (ticker: IMLP)
iPath® Silver ETN (ticker: SBUG)
ELEMENTS MLCX Grains Total Return ETN (ticker: GRU)
7.125% Fixed-Rate Reset Subordinated Debentures due 2052 (ticker: RZC)
UBC Algorithmic Fundamentals ETF (ticker: UBCB)
TETF.Index Performance vs. S&P Financial Select Sector Index
(as of February 24, 2023)
TETF.Index Performance vs. Other Leading Financial Indices
(March 31, 2017 through February 24, 2023)
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.