US ETFs grew to a record $1,727B as of February 28, 2014, an increase of 5.1% over the corresponding end January total. First Bridge Data released a breakdown of these assets by type of exposure / strategy, which showed that aggregate ETF assets increased for all the major asset classes, with the exception of currency ETPs. 15 new ETPs were launched in the US in February 2014, taking the net total number of ETPs in the US to 1568.
A summary of the asset totals can be accessed here.
Municipal bonds is one of several asset classes that have become easier and cheaper to access through ETFs. There are currently 34 ETFs in the US that provide access to this asset class. In our landscape report published today, we take a brief look at the Muni ETF Landscape in the US.
The report can be accessed on our home page.
As of end January 2014, 99% of the $1.643T in Exchange Traded Product (ETP) assets in the US were linked either to a financial index or a commodity / currency.
So which indices account for the largest share of US ETP assets? In the table below we show the top 20 Indices by ETP assets. A couple of notes before we look at the table:
1) We have defined each index in a ‘pure’ sense i.e. we have not grouped all the variations of each index when counting assets. For example, variations on the S&P 500 Index such as the Equal… see full post
35 new ETFs have been launched in the US in 2014 YTD (through Feb 14, 2014). The table below summarizes the new launches.
A full ETF product list is available here
Key highlights from our Feb 2014 ETF Landscape & Risk report:
ETP assets in the US fell to $1.64T as of January 31 2014 due to outflows and market declines. Equity ETFs saw total assets decline by $60.9b while bond ETFs saw assets increase by $2.9B.
January was marked by a sharp rise in the VIX, indicating that investors expect increased equity market volatility in the next 30 days. Some investors may want to evaluate low volatility ETFs as a way to stay invested in equities while reducing the magnitude of a potential drawdown relative to traditional market cap weighted equity… see full post
Assets for US listed ETFs were at $1,643B as of January 31, 2014, down by 3.4% from year end 2013 due to outflows and market declines. ETFs providing exposure to domestic US and Global (i.e. Ex-US international & global) equities saw total assets decline by $36.6B and $24.4B respectively, while bond ETFs saw assets increase by $2.9B.
The table below shows a breakdown of total assets as of January 2014 month end by type of exposure, along with the change from the previous month. A fully updated US ETF product list can be accessed at: http://firstbridgedata.com/etfproductlist
ETF /… see full post
The success of DXJ (the Wisdom Tree Japan Hedged ETF) in 2013 was a very significant development for the ETF industry last year. It was important because it reinforced one of the biggest benefits of ETFs: the ability to get rules based, targeted access to a sophisticated investment strategy at a relatively low cost.
However, one of the consequences of this is a rush by ETF sponsors to launch new currency-hedged products. In general, more product choice is good for investors when accompanied by adequate education, but there are some important considerations to keep in mind.
1. The Yen’s fall in… see full post
As of year end 2013, there were 1536 ETPs listed in the US, with total assets of $1,701Tn. Despite the increase in the number of ETFs and asset growth, the industry still has a high degree of asset concentration in the largest ETFs.
As we can see in the table below, the top 20 ETPs (i.e. 1.3% of the total number) account for 42% of all US ETP assets.
We will be examining this issue of ETF asset concentration and other ETF industry trends in our upcoming monthly ETF Landscape and Risk report.
ETF assets in the US continued to show strong growth as of end November 2013, through a combination of net inflows and appreciation in US equity markets. The table below shows a summary of assets for all US listed ETPs. It provides a useful snapshot of how assets for all US listed ETFs are currently allocated by type of exposure / strategy.
This table is excerpted from our upcoming monthly ETF Landscape and Risk report. The report includes an overview of the ETF landscape (total assets, number of ETPs) and some risk metrics for ETFs.
A complete updated list of all… see full post
Professional managers often observe that during times of market stress (such as in 2008), correlations between asset classes tend to converge. Most asset allocation models are based on certain correlation assumptions between asset classes and securities. We coined the term ‘ETF Correlation Drift’ as a simple way to track if correlations between ETFs have changed recently relative to longer term trends.
We measure ETF Correlation Drift as the difference between short term correlation (past 6-month returns) and long term correlations (past 5 year returns) for any given pair of ETFs.
Recently US bond ETFs (e.g. AGG, the iShares Barclays Aggregate Bond… see full post