Week of February 27, 2023 KPI Summary
Ryan Fitzgerald- This week, the industry experienced 6 ETF launches and 9 closures, shifting the 1-year Open-to-Close ratio to 2.39 and total US ETFs to 3,117.
- Predicted 12-Month Revenue from Active, Traditional, and Non-Traditional ETFs is a KPI the ETF Think Tank has been tracking for over 4 years. On 3/4/2019, the breakdown looked as follows:
| Traditional Index | $428,908,257,802 | 57.51% |
| Non-Traditional Index | $278,599,274,553 | 37.36% |
| Active | $38,267,341,649 | 5.13% |
| Total | $745,774,874,004 |
- Traditional ETFs dominated revenue with Active ETFs being just a sliver of the market.
- Just a year ago (3/6/2022), the chart looked very different:
| Traditional Index | $545,862,135,955 | 46.08% |
| Non-Traditional Index | $509,368,406,802 | 43.00% |
| Active | $129,278,420,739 | 10.91% |
| Total | $1,184,508,963,497 |
- Not only did Non-Traditional nearly overtake Traditional Index ETFs, but Active doubled its predicted revenue percentage of the industry and more than tripled the actual revenue total.
- Today, Non-Traditional has finally overtaken Traditional over the last few weeks and Active continues to grow as well:
| Traditional Index | $497,673,299,459 | 43.16% |
| Non-Traditional Index | $505,238,807,733 | 43.82% |
| Active | $150,182,647,080 | 13.02% |
| Total | $1,153,094,754,273 |
- Active management continues to grow its influence and revenues in the ETF industry as investor’s preferences potentially shift from little to no cost cookie-cutter ETFs to actively managed, higher-expense funds.
- The highlighted indexes experienced similar performance last week. The Toroso ETF Industry Index was up 0.66% while the S&P Financial Select Sector Index led at 0.88%.
ETF Launches
Invesco BulletShares 2032 Municipal Bond ETF (ticker: BSMW)
AllianzIM U.S. Large Cap Buffer10 Mar ETF (ticker: MART)
AllianzIM U.S. Large Cap Buffer20 Mar ETF (ticker: MARW)
Inverse Cramer ETF (ticker: SJIM)
Long Cramer ETF (ticker: LJIM)
First Trust Bloomberg Emerging Market Democracies ETF (ticker: EMDM)
ETF Closures
DB Agriculture Long ETN (ticker: AGF)
Direxion Daily CSI 300 China A Share Bear 1X ETF (ticker: CHAD)
Impact Shares Sustainable Development Goals Global Equity ETF (ticker: SDGA)
Principal Ultra-Short Active Income ETF (ticker: USI)
Direxion Daily US Infrastructure Bull 2X ETF (ticker: DOZR)
Direxion Nanotechnology ETF (ticker: TYNE)
Defiance Digital Revolution ETF (ticker: NFTZ)
Direxion Daily FinTech Bull 2X ETF (ticker: FNTC)
Newday Sustainable Development Equity ETF (ticker: SDGS)
Fund/Ticker Changes
International Drawdown Managed Equity ETF (ticker: IDME)
became Aptus International Enhanced Yield ETF (ticker: IDUB)
iShares MSCI Global Multifactor ETF (ticker: ACWF)
became iShares Global Equity Factor ETF (ticker: GLOF)
TETF.Index Performance vs. S&P Financial Select Sector Index
(as of March 3, 2023)
TETF.Index Performance vs. Other Leading Financial Indices
(March 31, 2017 through March 3, 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.
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.
