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ETF Industry KPI

Posted by Michael Venuto on Jan 10, 2022 4:38:14 PM
Michael Venuto
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Week of January 3, 2022 KPI Summary
  • This week, the industry experienced11 ETF launches and 2 closures, shifting the 1-year Open-to-Close ratio to 4.57 and total US ETFs to 2,812. There was also 1 Fund/Ticker Change.

  • Last week, we reviewed December’s monthly performance. This week, we debrief on 2021’s 1-year performance among our major KPI categories.

    • Total assets increased approximately 27%, which was more than both 2020 and 2019’s performance (23.54% and 30.67% respectively).

    • Total ETF count increased by 486to a total of 2,803, more than doubling 2019 and 2020’s additions combined (approximately 201 compared to 486).  

    • There were 76 more issuers by brand, an increase of 44.7%.

    • From our 11 asset class categories, Options increased the most (30%) and Commodities Physical had the worst performance (-14.17%) with Volatility close behind (-9.92%). The two largest asset classes of Equity (78.54% of assets) and Fixed Income (16.93%) grew 36.84% and 17.15%respectively.

    • ETF expense ratio 12-month revenue increased from $10.15 Billion to $12.21 Billion.

    • Of the 3 major exchanges, NYSE was the winner of 2021, increasing its market share of listings 3.72% and asset’s piece of the pie 4.12%, to a total of 75.38% of assets (Nasdaq 17.52% and CBOE 7.10% for comparison).

    • While revenue from Active ETFs rose slightly from 8.49% to 9.67%, Traditional and Non-Traditional had very differing performances. Traditional beta decreased from 52.70% of predicted 12-month revenue to 47.56% (-5.14%), while Non-Traditional beta grew from 38.81% to 42.77% (+3.96%). 

    • Although Active funds expanded from 464 ETFs to 775 ETFs (+311), they were still only 4.00% of total ETF assets. On the other hand, Traditional ETFs decreased from 598 to 539 funds (-59) in 2021, which is remarkable since the open-to-close ratio was 4.59, and still grew it’s assets by approximately $854 Billion, which is 22.83% growth.   

  • Though the ETF universe had its peaks and valleys in 2021, the overall outlook is very bright. In short, there were a massive amount of ETF launches from many new issuers and substantial growth in assets. However, a multi-year examination is certainly required to provide a deeper analysis of the 1-year performance.  

  • Both indexes experienced similar growth over 2021, the Toroso ETF Industry Index was up 31.53% while the S&P Financial Select Sector Index led at 35.04%.

KPI-Jan-10-2022-08-48-51-26-PM

ETF Launches

Motley Fool Small-Cap Growth ETF (ticker: TMFS)
AllianzIM US Large Cap 6 Month Buffer10 Jan/Jul ETF (ticker: SIXJ)
Innovator Growth Accelerated Plus ETF January (ticker: QTJA)
Innovator US Equity Accelerated 9 Buffer ETF January (ticker: XBJA)
Innovator US Equity Accelerated ETF January (ticker: XDJA)
Innovator US Equity Accelerated Plus ETF January (ticker: XTJA)
UPAR Ultra Risk Parity ETF (ticker: UPAR)
Gabelli Asset ETF (ticker: GAST)
NextGen Trend and Defend ETF (ticker: TRDF)
Rareview Inflation/Deflation ETF (ticker: FLTN)
Wahed Dow Jones Islamic World ETF (ticker: UMMA)


ETF Closures

Metaurus US Equity Ex-Dividend 2027 ETF (ticker: XDIV)
MFAM Small-Cap Growth ETF
(ticker: MFMS)

Fund/Ticker Change

WisdomTree US Quality Shareholder Yield ETF (ticker: QSY) became
WisdomTree US Value ETF
(ticker: WTV)

TETF.Index Performance vs. S&P Financial Select Sector Index
(as of January 7, 2022)

table-Jan-10-2022-08-48-51-28-PM


TETF.Index Performance vs. Other Leading Financial Indices
(March 31, 2017 through January 7, 2022)

chart-Jan-10-2022-08-48-51-33-PM

Source: Morningstar Direct


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.

Topics: ETF Industry KPI’s

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