ETF News & Research

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, …

WHY AM I DOWN WHEN THE MARKETS UP? AND WHAT’S NEXT

WHAT OCCURRED SINCE YOUR LAST QUARTERLY COMMENTARY WHY AM I DOWN WHEN THE MARKETS UP? AND WHAT’S NEXT The headline for our October commentary was “Why am I down when the markets up?” As of September 30th, the iShares Core S&P 500 ETF (IVV) was up 10.53%.  Growth was outperforming Value by 13.65%, and small …

ETFs AND DOING THE RIGHT THING

ETFs AND DOING THE RIGHT THING Although Veterans Days is only one day a year, there are ETFs that can honor our Vets throughout the year, and we want to remind investors that aligning principles with principal can provide for the best outcome. With this in mind, we highlight three subjects. First, we draw attention to …

THE POLITICS OF ETF INFLUENCE

THE POLITICS OF ETF INFLUENCE Today is election day, so we are going to cover voting and politics from an ETF perspective.  First, a look at the incumbency of ETF influence on stocks.  With the help of ETFRC.com, we examined the top ten ETFs with the most and least average ownership by ETFs. This matters because often …

TRICK OR TREAT? WHERE IS THE MOMENTUM IN THESE MARKETS?

TRICK OR TREAT? WHERE IS THE MOMENTUM IN THESE MARKETS? Trick or Treat! Advisors and investors beware – Momentum as a factor is defined differently within named ETFs which in fact do not have meaningful overlaps, and perhaps with good reason. Similarly, Value, Growth, and Quality as factors also seem to be subjectively evaluated, but in …

A Chronicle of ETF M&A

A CHRONICLE OF ETF M&A Last week, Invesco announced the planned acquisition of Oppenheimer Funds following the successful integration of Guggenheim ETFs. We have benefited from the consolidation of the industry and we’re not surprised by the news. We expect additional accretive deals to be structured and lead to an acceleration of the growth and …