Source of KPIs: Toroso Investments Security Master, as of March 9, 2018
INDEX PERFORMANCE DATA
|03/09/2018||1 Wk||1 Mo||3 Mo||6 Mo||1 Yr||QTD||YTD||Since
|Toroso ETF Industry Index||5.65%||10.38%||13.75%||32.78%||13.34%||13.34%||42.76%|
|S&P Financial Select Sector Index||4.42%||7.37%||6.67%||24.59%||21.93%||6.46%||6.46%||26.88%|
SHOULD THE NASDAQ 100 BE EQUAL WEIGHTED?
This concentration in the largest growth and momentum stocks begs the question: Should the NASDAQ 100 be equally weighted? Not surprisingly, the ETF industry has already answered this question twice with two EW versions of the NASDAQ 100 index:
QQQE from Direxion with an expense ratio of 0.35%
QQEW from First Trust with an expense ratio of 0.60%
We focused on the lower cost option from Direxion to evaluate just how different the EW ETF is from the QQQ using our ETF Thinktank tools:
As you can see, even though they own the exact same stocks, the overlap by position weight is only 53%, which results in lower fundamentals and concentration.
In the opening paragraph, we noted that QQQ is unique in that we believe this is the only traditional index based on exchange listing. Luckily, we have ETF Nerds like Lois Gregson from Factset to check our work (She corrected our TETFindex Note on ETNs, citing the collapse of a Lehman note).
Speaking of Female ETF Nerds, March 8th was international women’s day. Our friends at Women in ETFs helped celebrate by participating in 59 exchange bell ringings.
For our small part, our marketing director Alejandra Slatapolsky designed the female version of our ETF Nerd Icon and the voting continues on twitter. We would love to hear what you think!
ETNs may be less than 1% of the assets, but they are more than 10% of the total products listed. Interestingly, the 11% of Unit Investment Trust Structure AUM (previous chart) is in only 8 ETFs including SPY, the largest and oldest ETF. See the list of UIT structured ETFs below. This original structure works but can be less tax efficient and restrictive than the more commonly used 40 Act structures.
Davis Select International ETF – DINT
TETF INDEX PERFORMANCE Vs. LEADING FINANCIAL INDEXES
TOP 10 HOLDINGS PERFORMANCE
BOTTOM 10 HOLDINGS PERFORMANCE