Week of January 1, 2024 KPI Summary
Ryan Fitzgerald- This week, the industry experienced 12 ETF launches and 5 closures, shifting the 1-year Open-to-Close ratio to 2.02 and total US ETFs to 3,380.
- Last week, we reviewed the performance for Q4. This week, as promised, we thoroughly review 2023’s 1-year performance among our major KPI categories.
- Total assets increased approximately 24.9%, compared to -9.8% in 2022, and increases of 32.3% in 2021, 23.5% in 2020, and 30.7% in 2019.
- Total ETF count increased +283, compared to +291 in 2022.
- There were 33 more issuers by brand, an increase of 12.0%.
- 2022 was also very similar with +29 issuers, an 11.8% increase.
- From our 11 asset class categories, Options increased the most (182.6%) with Geared/Swaps next (43.4%). Currency had the worst performance (-46.8%) with Volatility at second worst (-32.3%). The two largest asset classes of Equity (76.6% of assets) and Fixed Income (18.2%) jumped 25.7% and 17.9% respectively.
- While the Managed Futures category was up 364.4% in 2022, it was down in 2023 (-12.4%). The category is a total of 5 funds.
- ETF expense ratio 12-month revenue increased from $11.0 Billion to $12.9 Billion.
- Similar to 2022, there was not a standout winner of the 3 major exchanges, but NYSE would receive our 3rd place medal.
- NYSE was up approximately 22.7% in assets (worst) and increased 6.5% in total funds (+130).
- Although NYSE ETF AUM went up $1.1 Billion, they lost market share to CBOE and Nasdaq, down from 75.24% to 74.84%
- Nasdaq was up 24.7% in 2022, and total funds rose 13.2%, a +68 fund increase.
- Lastly, CBOE was up 26.8% (best) and up 14.8% in total funds (+86). With that said, NYSE makes up 75.2% of total ETF assets and 64.5% of total funds.
- NYSE was up approximately 22.7% in assets (worst) and increased 6.5% in total funds (+130).
- The 12-month Revenue from Actively Managed ETFs shot up from 12.2% to 15.2% in 2023.
- The ETF industry had a great performance in 2023 coming off a downturn in 2022 assets. Assets are currently at or near all-time highs, Active ETFs have consistently grown their influence year over year, and both issuers and funds have seen similar increases to totals in back-to-back years (2023 being slightly different with more launches paired with more closures). A full 2023 breakdown from the Tank will come in the following weeks, and it’s been an honor covering another full year of ETF Industry KPIs.
- Both indexes experienced different jumps over 2023: the Toroso ETF Industry Index was up 18.95% while the S&P Financial Select Sector Index trailed at 12.15%.
ETF Launches
Innovator Equity Defined Protection ETF – 2 Year to January 2026 (ticker: AJAN)
Innovator Premium Income 9 Buffer ETF – January (ticker: HJAN)
Innovator Premium Income 10 Barrier ETF – January (ticker: JAND)
Innovator Premium Income 20 Barrier ETF – January (ticker: JANH)
Innovator Premium Income 30 Barrier ETF – January (ticker: JANJ)
PGIM US Large-Cap Buffer 12 ETF – January (ticker: JANP)
Innovator Premium Income 40 Barrier ETF – January (ticker: JANQ)
Innovator Premium Income 15 Buffer ETF – January (ticker: LJAN)
Cambria Micro and Smallcap Shareholder Yield ETF (ticker: MYLD)
PGIM US Large-Cap Buffer 20 ETF – January (ticker: PBJA)
Tuttle Capital Daily 2X Inverse Regional Banks ETF (ticker: SKRE)
Cambria Tactical Yield ETF (ticker: TYLD)
ETF Closures
Innovator Double Stacker 9 Buffer ETF – January (ticker: DBJA)
Innovator Double Stacker ETF – January (ticker: DSJA)
Innovator Triple Stacker ETF – January (ticker: TSJA)
SPDR S&P Internet ETF (ticker: XWEB)
Sterling Capital Diverse Multi-Manager Active ETF (ticker: DEIF)
Fund/Ticker Changes
Cabana Target Leading Sector Conservative ETF (ticker: CLSC) and Cabana Target Leading Sector Aggressive ETF (ticker: CLSA) merged into Cabana Target Leading Sector Moderate ETF (ticker: CLSM)
Cabana Target Drawdown 13 ETF (ticker: TDSD) and Cabana Target Drawdown 16 ETF (ticker: TDSE) merged into Cabana Target Drawdown 10 ETF (ticker: TDSC)
TETF.Index Performance vs. S&P Financial Select Sector Index
(as of January 5, 2024)
TETF.Index Performance vs. Other Leading Financial Indices
(March 31, 2017 through January 5, 2024)
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.
