Week of March 27, 2023 KPI Summary
- This week, the industry experienced 9 ETF launches and 1 closure, shifting the 1-year Open-to-Close ratio to 2.34 and total US ETFs to 3,139.
- After a mediocre February, let’s see how March panned out for the ETF industry (data comparing 3/5/23 to 4/2/23).
- Total assets increased 0.74%, there was an increase of 21 ETFs to total US ETF count (3,139), and 0 additional issuers by brand.
- From our 11 asset class categories, Volatility increased the most (11.8%) with Commodities Physical next (8.4%). Managed Futures had the worst performance (-11.6%) with Currency not far behind (-6.1%). The two largest asset classes of Equity (75.7% of assets) and Fixed Income (19.3%) differed at -0.5% and 3.8% respectively.
- This is one of the few times where Equities were down, but the overall industry was up on the month.
- The ETF expense ratio annual revenue inched up from $11.5 Bn to $11.7 Bn.
- While January was a massive jump and February was a small step back in assets, March was somewhere in the middle to end the first quarter of 2023. Similar to the trend in 2023, we are flipping back and forth with positive and negative changes in total assets month to month (Jan +, Feb -, March +). The lack of additional issuers for two months has resulted in a small steady increase in fund creation and a hovering open–to-close ratio of 2.3 to 2.6.
- The tracked indexes had surprising experiences in March compared to results displayed above. The Toroso ETF Industry Index was down -4.16% while the S&P Financial Select Sector Index trailed at -9.55%.
Simplify Commodities Strategy No K-1 ETF (ticker: HARD)
US Treasury 20 Year Bond ETF (ticker: UTWY)
US Treasury 3 Year Note ETF (ticker: UTRE)
US Treasury 30 Year Bond ETF (ticker: UTHY)
US Treasury 5 Year Note ETF (ticker: UFIV)
US Treasury 7 Year Note ETF (ticker: USVN)
iShares Breakthrough Environmental Solutions ETF (ticker: ETEC)
SGI Dynamic Tactical ETF (ticker: DYTA)
SGI U.S. Large Cap Core ETF (ticker: SGLC)
PSYK ETF (ticker: PSYK)
TETF.Index Performance vs. S&P Financial Select Sector Index
(as of March 31, 2023)
TETF.Index Performance vs. Other Leading Financial Indices
(March 31, 2017 through March 31, 2023)
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.