Weekly updates

ANALYZING $3.3 BILLION IN REIT ETF FLOWS WITH THE SMARTCOST™CALCULATOR

ANALYZING $3.3 BILLION IN REIT ETF FLOWS WITH THE SMARTCOST™CALCULATOR   Last week, Bloomberg’s ETFIQ covered the massive flows into  REIT ETFs so far in 2019. Eric Balchuanus highlighted that REIT flows are highly correlated with interest rates, so money going into the space after the Federal Reserve decided to pause should not be a surprise. According to …

COULD THE GROWTH OF ETFS BE BAD FOR BASEBALL?

COULD THE GROWTH OF ETFS BE BAD FOR BASEBALL? In light of a difficult market in 2018 and despite positive flows, ETFs assets and revenues were down only slightly for the year.  That said, 2019 appears to be business as usual for the industry with US ETF assets up 8.5% as of 3/11/2019, and according to …

THEMATIC ETFS AND NURSERY RHYMES

THEMATIC ETFS AND NURSERY RHYMES GOOD FOR THE GOOSE, GOOD FOR THE GANDER Last week, the client alignment growth factor of low fees culminated in further reductions from Vanguard and a filing from our partners at Tidal ETF Services and SoFi. Thank you to Nate Geraci and Todd Rosenbluth for being on top of the news …

A RESPONSE TO ELISABETH KASHNER’S ARTICLE “TOUGH TIMES FOR NEW ETF LAUNCHES”

A RESPONSE TO ELISABETH KASHNER’S ARTICLE “TOUGH TIMES FOR NEW ETF LAUNCHES” By Dan Weiskopf @ETF Professor FLOWS INTO THE S&P 500 ARE A RESULT OF EXTRAORDINARY CIRCUMSTANCES There is no doubt that it is challenging to launch an ETF, and Elisabeth Kashner at FactSet brings up a reality that every ETF issuer knows and every new …

THE GOOD, THE BAD, AND THE INNOVATION OF ETF GROWTH

THE GOOD, THE BAD, AND THE INNOVATION OF ETF GROWTH Last week, the Toroso Research team attended Inside ETFs in Hollywood, Florida. Close to 3,000 ETF Nerds gathered to discuss ETF industry trends, growth, and challenges. In early 2018, the equity and crypto market euphoria set a dystopian tone at the conference, which we chronicled in …

INSIDE ETFs = PIZZA, ROBOTICS, & FIXED INCOME

INSIDE ETFs = PIZZA, ROBOTICS, & FIXED INCOME ETFs are more than just about equities. They are about an investor revolution who woke up 10 years ago and said, “we want transparency, low fees, and ease of access, and by the way – tax efficiency matters as well.”  ETFs are about access to strategies as solutions …

MUTUAL FUND HOT POTATO STRATEGY ENCORE

MUTUAL FUND HOT POTATO STRATEGY ENCORE So your mutual fund lost money and distributed capital gains? If we did not get your attention with the first sentence – Try this:  The top quartile of US equity mutual funds distributed a capital gain of 20% for 2018!   We first covered this phenomenon in December:​ TAX BASIS IN …

THE CLIENT IS THE CENTER OF THE ETF ECOSYSTEM

THE CLIENT IS THE CENTER OF THE ETF ECOSYSTEM Each week, the TETF.index team highlights the companies and factors driving ETF growth. We break the ETF ecosystem into five sub-sectors:Fund Sponsors like WisdomTree (WETF) and Blackrock (BLK), Index and Data companies like S&P Global (SPGI) and Morningstar (MORN), Exchanges like NYSE (ICE) and CBOE (CBOE), Service Providers …

BOGLE’S FOLLY GAVE BIRTH TO AN INDUSTRY

BOGLE’S FOLLY GAVE BIRTH TO AN INDUSTRY Last week, the ETF industry lost our reluctant patriarch Jack Bogle, the founder of Vanguard. We say reluctant because Jack often expressed disdain for the tradability of ETFs and preferred index based mutual funds. Despite his concerns, the creation of low-cost, index-based investment was Jack’s innovation and eventually …

ETF GROWTH CRUISES ON DESPITE ROUGH SEAS

ETF GROWTH CRUISES ON DESPITE ROUGH SEAS In last week’s TETF.index update, we looked at how, despite significant inflows, the revenue attributed to ETF sponsors declined by over 9% in 2018. That said, 2019 is off to a great start with more than $8 billion in net flows already and 3.94% YTD increase in assets as …

2018: VOLATILITY IN MARKETS AND THE ETF INDUSTRY

    2018: VOLATILITY IN MARKETS AND THE ETF INDUSTRY In 2018, we experienced many ups and downs. We began with the February volatility spike that resulted in the demise of the Velocity Daily Inverse Vix Short Term ETF (XIV) and the spring rally that brought the US markets to double digit returns going into October. …

TAX BASIS IN MUTUAL FUNDS: THE HOT POTATO STRATEGY

TAX BASIS IN MUTUAL FUNDS: THE HOT POTATO STRATEGY As we come to the end of a volatile 2018, the TETF.index research team continues to reflect on ETF growth and structures. Last week we reviewed the ETF wrapper and the enhanced tax efficiency. This week we look at the beginning of a multi year trend which will likely result …

THE SIMPLE TRUTH: A BETTER MOUSE TRAP IS EVIDENCED BY YOUR TAX BILL

THE SIMPLE TRUTH: A BETTER MOUSE TRAP IS EVIDENCED BY YOUR TAX BILL Sometimes, simplicity adds clarity in its presentation of evidence in why we see continued growth in the ETF industry. With that in mind, this week’s message focuses on the ETF market through an analysis of the Top 10 US Equity ETFs and …

ETFs, BITCOIN & BLOCKCHAIN: A SYMBIOTIC EVOLUTION

ETFs, BITCOIN & BLOCKCHAIN: A SYMBIOTIC EVOLUTION Each week, the TETF.index research team discusses the growth potential of the ETF ecosystem. Our positive outlook is buoyed by the belief that ETFs are simply a better vehicle than other financial instruments; we think of the ETF as a Fintech innovation within a world of outdated financial products. …

ETFS & TAX TIME

ETFS & TAX TIME Each week as we discuss ETF progression, we note that client alignment growth factors like low cost, transparency, liquidity, and tax efficiency are driving asset expansion.  As we come to the end of 2018, many asset classes have produced negative returns, prompting investors to “harvest” tax losses.  With taxes in mind, …