Week of October 3, 2022 KPI Summary
- This week, the industry saw 9 ETF launches and 8 closures, shifting the 1-year Open-to-Close ratio to 3.24 and total US ETFs to 3,034.
- As the 3rd Quarter of 2022 has wrapped up, let’s take a look at some KPIs that stand out (comparing July 3, 2022 to October 2, 2022).
- Total assets dropped -4.48%; there was a net increase of 65 ETFs during the quarter, bringing the US ETF count to 3,033, which is +230 YTD; and there were 0 additional issuers by brand.
- From our 11 asset class categories, Managed Futures increased the most (88.90%) with Currency in second (21.31%). Commodities Derivative had the worst performance (-18.53%) with Commodities Physical next (-15.00%). The two largest asset classes of Equity (75.32% of assets) and Fixed Income (19.79%) dropped -5.30% and inched up 0.02% respectively.
- ETF expense ratio 12-month revenue dipped from $10.76 Billion to $10.06 Billion.
- The revenue from Active ETFs increased from 11.68% to 12.30%.
- Although a decline in total ETF assets of 4.48% is better than Q2’s -12.0% mark, it leaves the ETF industry at 18-month lows in assets, with revenues barely above the $10 Billion mark.
- There was nearly the same increase in total ETFs as Q2 (+65 compared vs. +68 the previous quarter), however, the open-to-close ratio dropped to 3.42 (from 4.44) with significantly more closures seen this quarter: 52 in Q3 vs. 51 in Q1 + Q2 combined.
- The tracked indexes had similar experiences in Q3 2022. The Toroso ETF Industry Index was down -4.11% while the S&P Financial Select Sector Index led at -3.10%.
Bitwise Web3 ETF (ticker: BWEB)
BlackRock Floating Rate Loan ETF (ticker: BRLN)
Global X Russell 2000 Covered Call & Growth ETF (ticker: RYLG)
NightShares 500 1x/1.5x ETF (ticker: NSPL)
VanEck Morningstar SMID Moat ETF (ticker: SMOT)
Distillate Small/Mid Cash Flow ETF (ticker: DSMC)
Strive U.S. Semiconductor ETF (ticker: SHOC)
Thrivent Small-Mid Cap ESG ETF (ticker: TSME)
7.125% Fixed-Rate Reset Subordinated Debentures due 2052 ETF (ticker: RZC)
Direxion Russell 1000® Value Over Growth ETF (ticker: RWVG)
Direxion Russell 1000® Gr Over Value ETF (ticker: RWGV)
Direxion Fallen Knives ETF (ticker: NIFE)
Direxion World Without Waste ETF (ticker: WWOW)
Direxion Daily Cloud Computing Bear 2X ETF (ticker: CLDS)
Direxion Daily 5G Communications Bull 2X ETF (ticker: TENG)
Direxion Low Priced Stock ETF (ticker: LOPX)
Amplify Pure Junior Gold Miners ETF (ticker: JGLD)
First Trust FTSE EN Developed Markets Real Estate ETF (ticker: FFR)
became First Trust Alerian Disruptive Technology Real Estate ETF (ticker: DTRE)
TETF.Index Performance vs. S&P Financial Select Sector Index
(as of October 7, 2022)
TETF.Index Performance vs. Other Leading Financial Indices
(March 31, 2017 through October 7, 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.