Week of December 28, 2020 KPI Summary
This week, the industry experienced 14 new ETF launches and 1 closure, altering the final 2020 Open-to-Close ratio from 0.90 to 0.97 and total US ETFs is at 2,317. US ETF assets increased 1.12% this week, but the bigger picture shows US ETF assets increased 23.54% on the year, over 1 Trillion dollars from $4.41 Tn to 5.46 Tn. In comparison, total assets grew 30.67% in 2019.
ETF expense ratio 12-month revenue grew nearly 19% in 2020 from $8.23 Bn to $10.15 Bn, and revenue from the Active sector scaling from 5.78% to 8.49% of the pie. Lastly, as for the number of ETFs and brands, the number of ETF brands surged from 141 to 170 at year-end, although the number of ETFs stayed about the same. We can derive that more institutions and companies are creating ETFs, but the industry is trimming the fat of underperforming and smaller ETFs just as frequently. Both indexes experienced minimal change this week, but the Toroso ETF Industry Index is still outperforming the S&P Financial Select Sector Index in total 2020 returns. TETFindex finished at 27.03 while S&P stands at negative -1.69% at year-end.
Gotham Enhanced 500 ETF (ticker: GSPY)
AdvisorShares Q Portfolio Blended Allocation ETF (ticker: QPT)
AdvisorShares Q Dynamic Growth ETF (ticker: QPX)
AVDR US LargeCap ESG ETF (ticker: AVDG)
AVDR US LargeCap Leading ETF (ticker: AVDR)
Cabot Equity Growth ETF (ticker: CBTG)
MerlynAI SectorSurfer Momentum ETF (ticker: DUDE)
Upholdings Compound Kings ETF (ticker: KNGS)
Pacer Swan SOS Fund of Funds ETF (ticker: PSFF)
SP Funds S&P Global REIT Sharia ETF (ticker: SPRE)
Rayliant Quantamental China Equity ETF (ticker: RAYC)
Sound Equity Income ETF (ticker: SDEE)
Sound Enhanced Fixed Income ETF (ticker: SDEF)
SmartETFs Advertising & Marketing Technology ETF (ticker: MRAD)
AGFiQ US Market Neutral Value (ticker: CHEP)
TETF.Index Performance vs. S&P Financial Select Sector Index
(as of January 1, 2021)
TETF.Index Performance vs. Other Leading Financial Indices
(March 31, 2017 through January 1, 2021)
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.