Week of March 13, 2023 KPI Summary
- This week, the industry experienced 3 ETF launches and 3 closures, shifting the 1-year Open-to-Close ratio to 2.36 and total US ETFs to 3,124.
- Today is the first day of Spring so Happy Spring everyone! The 2023 Winter weather for much of the US was mild compared to previous years, but let’s see how the ETF industry fared (data comparing 12/18/2022 to 3/19/2023)
- 1.0% increase in total US ETFs (+33), and a 1.4% increase in total assets (approximately $91 Bn).
- From our 11 asset class categories, Commodities Physical increased the most (8.0%) and Volatility had the largest drop (-24.7%). The two largest asset classes of Equity (75.5% of assets) and Fixed Income (19.8%) both elevated 0.8% and 3.1% respectively.
- No change in ETF expense ratio 12-month revenue.
- Revenue from Active ETFs shot up from 12.1% to 13.2%.
- Only 2 additional ETF issuers, meanwhile there were 23 last Spring.
- Winter 2023 turned out to be mild with assets, just like the weather. We have also seen the continued trend of more closures and fewer new issuers coming into the space. On the bright side, innovation is still coming from current issuers and assets are stabilizing on an upward trajectory.
- The tracked indexes had similar experiences over the Winter. Toroso ETF Industry Index was down -3.55% while the S&P Financial Select Sector Index trailed at -7.55%.
First Trust Bloomberg Inflation Sensitive Equity ETF (ticker: FTIF)
American Century Multisector Floating Income ETF (ticker: FUSI)
JPMorgan Active China ETF (ticker: JCHI)
Invesco DB G10 Currency Harvest ETF (ticker: DBV)
Invesco DB Silver ETF (ticker: DBS)
Invesco DB Gold ETF (ticker: DGL)
Bridgeway Omni Tax-Managed Small-Cap Value Fund (ticker: BOTSX)
became EA Bridgeway Omni Small-Cap Value ETF (ticker: BSVO)
TETF.Index Performance vs. S&P Financial Select Sector Index
(as of March 17, 2023)
TETF.Index Performance vs. Other Leading Financial Indices
(March 31, 2017 through March 17, 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.