Week of September 26, 2022 KPI Summary
This week, the industry experienced 9 ETF launches and zero closures, shifting the 1-year Open-to-Close ratio to 3.42 and total US ETFs to 3,033.
September was a down month for the ETF industry in terms of assets. It was 3rd worst in 2022 thus far with April (-7.53) and June (-7.22) being slightly below. Note the data below will compare 9/4/22 KPIs to 10/2/22.
Total assets decreased -6.68%, there was an increase of 46 ETFs to total US ETF count (3,033), and +3 additional issuers by brand.
From our 11 asset class categories, Managed Futures increased the most by far (47.28%) with Currency as the only other category in the black (0.43%). Commodities Derivative had the worst performance (-9.22%) with Geared/Swaps closely behind (-8.24%). The two largest asset classes of Equity (75.32% of assets) and Fixed Income (19.79%) dropped -7.81% and -2.44% respectively.
Note, this is consecutive months with Managed Futures and Currency as the top 2.
ETF expense ratio 12-month revenue decreased from $10.86 Billion to $10.06 Billion.
Revenue from Active ETFs inched up from 11.98% to 12.30%.
After a +2.53% first week of September, assets dropped -9.0% from $6.54 Tn to $5.95 Tn. ETF assets dropped below $6 Tn, testing 18-month lows in a sign that the markets are sparing no one. On the other hand, the increase of 46 ETFs this month is a large jump from August’s +8.
The tracked indexes had similar experiences in September. The Toroso ETF Industry Index was down -9.00% while the S&P Financial Select Sector Index led at -7.76%.
Avantis® All Equity Markets ETF (ticker: AVGE)
Avantis® Inflation Focused Equity ETF (ticker: AVIE)
AXS Green Alpha ETF (ticker: NXTE)
John Hancock U.S. High Dividend ETF (ticker: JHDV)
Noble Absolute Return ETF (ticker: NOPE)
Altrius Global Dividend ETF (ticker: DIVD)
Putnam BDC Income ETF (ticker: PBDC)
Putnam Biorevolution ETF (ticker: SYNB)
Simplify Bitcoin Strategy PLUS Income ETF (ticker: MAXI)
TETF.Index Performance vs. S&P Financial Select Sector Index
(as of September 30, 2022)
TETF.Index Performance vs. Other Leading Financial Indices
(March 31, 2017 through September 30, 2022)
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.
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.