ETF Industry KPI – 7/10/2023

Week of July 3, 2023 KPI Summary

Ryan Fitzgerald

• This week, the industry experienced 5 ETF launches and 12 closures, shifting the 1-year Open-to-Close ratio to 1.98 and total US ETFs to 3,188.
  • The Open-to-close ratio hasn’t been below 2.00 since June 27, 2021, climbing as high as 5.59 in that 24.5 month period.
• Two weeks ago, we took a look at Spring 2023 KPIs, which are very similar to the Q2 data we would portray. With that in mind, let’s take a 1-year perspective on the ETF industry as we crossed halfway into 2023 (data comparing 7/10/22 to 7/9/23):
  • Total assets increased 15.5% – there was an increase of 220 ETFs to total US ETF count (3,188), and +25 additional issuers by brand.
  • From our 11 asset class categories:
    • Increased Most: Options, 51.2%
      • Second: Managed Futures, 36.8%
    • Decreased Most: Currency, -44.7%
      • Second: Commodities Derivative, -40.1%
    • The two largest asset classes of Equity (76.9% of assets) and Fixed Income (18.7%) surged 16.1% and 14.9% respectively.
  • ETF expense ratio 12-month revenue grew from $10.75 Billion to $12.09 Billion.
  • The revenue from Active ETFs rose from 11.9% to 13.3%.
• The last 12 months have been filled with growth in the ETF industry. Assets increased nearly $1 Billion (963 Million). One data point to note is that although total funds are up +220, the Open-close ratio dropped from 4.27 to 1.95 due to the increase in closures over 12 months. The last several months of positive asset growth have carried this high performance.
• The tracked indexes had similar positive experiences in the last 12 months. The Toroso ETF Industry Index was up 11.9% while the S&P Financial Select Sector Index trailed at 6.7%.

ETF Launches

Innovator Premium Income 10 Barrier ETF July (ticker: JULD)
Innovator Premium Income 20 Barrier July (ticker: JULH)
Innovator Premium Income 30 Barier ETF July (ticker: JULJ)
Innovator Premium Income 40 Barier ETF July (ticker: JULQ)
MUSQ Global Music Industry ETF (ticker: MUSQ)

ETF Closures

AdvisorShares Managed Bitcoin Strategy ETF (ticker: CRYP)
Invesco PureBeta FTSE Developed ex-North America ETF (ticker: PBDM)
Invesco PureBeta FTSE Emerging Markets ETF (ticker: PBEE)
Invesco PureBeta US Aggregate Bond ETF (ticker: PBND)
Invesco PureBeta MSCI USA Small Cap ETF (ticker: PBSM)
Invesco Balanced Multi-Asset Allocation ETF (ticker: PSMB)
Invesco Conservative Multi-Asset Allocation ETF (ticker: PSMC)
Invesco Growth Multi-Asset Allocation ETF (ticker: PSMG)
Invesco Moderately Conservative Multi-Asset Allocation ETF (ticker: PSMM)
First Trust Developed International Equity Select ETF (ticker: RNDM)
Gateway Senior Secured Credit Opportunities ETF (ticker: SECD)
AdvisorShares Drone Technology ETF (ticker: UAV)

Fund/Ticker Changes

None

TETF.Index Performance vs. S&P Financial Select Sector Index
(as of July 7, 2023)

TETF.Index Performance vs. Other Leading Financial Indices
(March 31, 2017 through July 7, 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. 

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.