Week of December 25, 2023 KPI Summary
Ryan Fitzgerald- This week, the industry experienced 1 ETF launch and 8 closures, shifting the 1-year Open-to-Close ratio to 2.05 and total US ETFs to 3,377.
- In our last KPI article, we celebrated US ETF assets crossing the $8 Trillion mark. With back-to-back positive 1-week changes since then, today’s $8.13 Trillion is the new record high for the industry. Let’s see how December did overall in a few noteworthy metrics we track (data comparing 12/3/23 – 12/31/23).
- Total assets increased 5.2%, there was an increase of 24 ETFs to total US ETF count (3,377), and 4 additional issuers by brand.
- From our 11 asset class categories, Geared/Swaps increased the most (7.7%) with Allocation next (5.9%). Currency had the worst performance (-9.2%) with Volatility at second worst (-8.4%). The two largest asset classes of Equity (76.6% of assets) and Fixed Income (18.2%) jumped 5.8% and 3.0% respectively.
- After 3 consecutive months (Aug – Oct) with Geared/Swaps in the bottom two performing categories, it moves to #1 for November and December.
- On the other hand, Volatility is bottom 2 for November and December after coming off consecutive months in the top 2 (Sept – Oct).
- The ETF expense ratio annual revenue increased from $12.3 Bn to $12.9 Bn.
- This is the highest ETF Expense Ratio Annual Revenue ever recorded for US ETF industry.
- This metric has been in the 12s in 46 different weeks in the past 3 years, never 12.9 or higher.
- December ended 2023 on a positive note in the ETF industry. It was the 3rd largest increase in assets behind November (11.4%) and January (7.8%). With an uptick in closures, the +24 ETFs sit in the middle of the pack for total ETFs month over month, yet the lowest since July (+19). From August on, we have seen +23 issuers to the industry, a massive and consistent increase month to month (+4 lowest and +6 highest in 5-month span).
- Lastly, the last two weeks have set record highs in “ETFs launched in the last 12-months” with +512 last week and +514 the week before that (12/17/23 – 12/24/23).
- The tracked indexes had different positive experiences in December. The Toroso ETF Industry Index was up 10.2% while the S&P Financial Select Sector Index trailed at 5.4%.
ETF Launches
Cyber Hornet S&P 500 and Bitcoin 75/25 Strategy ETF (ticker: ZZZ)
ETF Closures
Invesco BulletShares 2023 Corporate Bond ETF (ticker: BSCN)
Invesco BulletShares 2023 High Yield Corporate Bond ETF (ticker: BSJN)
Invesco BulletShares 2023 Municipal Bond ETF (ticker: BSMN)
JPMorgan Sustainable Consumption ETF (ticker: CIRC)
JPMorgan Social Advancement ETF (ticker: UPWD)
Merk Stagflation ETF (ticker: STGF)
Corbett Road Tactial Opportunity ETF (ticker: OPPX)
Armor US Equity Index ETF (ticker: ARMR)
Fund/Ticker Changes
None
TETF.Index Performance vs. S&P Financial Select Sector Index
(as of December 29, 2023)
TETF.Index Performance vs. Other Leading Financial Indices
(March 31, 2017 through December 29, 2023)
Why Follow the ETF Industry KPIs
The team at Tidal Investments, originally operating as Toroso Investments, began tracking the ETF Industry Key Performance Indicators (KPIs) in the early 2000s and have been consistently reporting on, and analyzing these metrics ever since. This diligent tracking was the catalyst for the creation of the TETF.Index, an index that tracks the ETF industry. Now, as part of the Tidal Financial Group, which is affiliated with Tidal Investments, LLC, we are positioned to provide even more in-depth analysis and insights. 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 TETF.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 Tidal Investments, LLC (formerly known as Toroso Investments, LLC) has gathered the information presented from sources that it believes to be reliable, Tidal Investments, LLC 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 Tidal Investments, LLC’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.
