The ETF industry began the year with a thud.  Listings decreased by ten, including five actively managed ETFs, and assets dropped by a percentage point.  Although 13 new ETFs launched in the first month of the year, 23 other products closed, delisted, and liquidated.  Product count now stands at 1,652, consisting of 1,442 ETFs and 210 ETNs.  Additionally, 120 of the ETFs are classified as being actively managed, and 44 have been identified as being fund-of-funds products.

 

Assets under management (“AUM”) fell more than $19 billion to $1.98 trillion.  This was just a 1% decline and is actually quite healthy given the 3% drop in the S&P 500 for the month.  ETFs with more than $10 billion in assets increased from 44 to 47 and account for 57.6% of all assets.  It takes $1.2 billion in assets to be an ‘average’ sized product, although only 224 (< 14%) can claim being above average.

Trading activity didn’t change much from December.  Total dollar volume came in at $1.87 trillion, just 0.5% higher for the month.  The quantity of highly traded products averaging more than $1 billion a day jumped from nine to twelve.  These dozen represent less than 1% of the listed products but account for 59.4% of all trading activity.

Actively managed ETFs made significant inroads last year with 56 launches and just 2 closures for a net increase of 54 funds.  Things went the other way in January with no new actively managed ETFs coming to market and five shutting down.  The year is far from over, but the early trend is unfavorable.

Our stats table changed this month with rows for actively managed ETF listing counts and AUM included at the bottom of the table.  There is no such thing as an actively managed ETN, so we are using the ETN column to display the monthly change count for listings and percentage change of AUM.  Likewise, the Total column displays the year-to-date change for each measurement.

 

January 2015 Month End ETFs ETNs Total
Currently Listed U.S. 1,442 210 1,652
Listed as of 12/31/2014 1,451 211 1,662
New Introductions for Month 13 0 13
Delistings/Closures for Month 22 1 23
Net Change for Month -9 -1 -10
New Introductions 6 Months 95 5 100
New Introductions YTD 13 0 13
Delistings/Closures YTD 22 1 23
Net Change YTD -9 -1 -10
Assets Under Mgmt ($ billion) $1,953 $26.2 $1,980
% Change in Assets for Month -1.0% -2.6% -1.0%
% Change in Assets YTD -1.0% -2.6% -1.0%
Qty AUM > $10 Billion 47 0 47
Qty AUM > $1 Billion 246 4 250
Qty AUM > $100 Million 745 37 782
% with AUM > $100 Million 51.7% 17.6% 47.3%
Monthly $ Volume ($ billion) $1,796 $69.9 $1,866
% Change in Monthly $ Volume +0.0% +15.3% +0.5%
Avg Daily $ Volume > $1 Billion 11 1 12
Avg Daily $ Volume > $100 Million 97 4 101
Avg Daily $ Volume > $10 Million 316 12 328
Actively Managed ETF Count (w/ change) 120 -5 mth -5 ytd
Actively Managed AUM ($ billion) $17.6 +2.2% mth +2.2% ytd

Data sources:  Daily prices and volume of individual ETPs from Norgate Premium Data.  Fund counts and all other information compiled by Invest With An Edge.

New products launched in January (sorted by launch date):

  1. Direxion Daily FTSE Developed Market Bull 1.25x Shares (LLDM), launched 1/7/15, is part of the new Lightly Leveraged series from Direxion that aims to provide magnified equity exposure while mitigating the long term volatility decay impacts of daily leverage reset.  LLDM is designed to return 125% of the daily performance of the FTSE Developed ex North America Index that includes stocks of large- and mid-capitalization companies in 24 developed countries.  Japan tops the list with about a 22% allocation, and Britain is next with 17%.  LLDM is a fund-of-funds holding Vanguard FTSE Developed Markets (VEA), and the expense ratio is capped at 0.50% until 9/1/16 (LLDM overview).
  2. Direxion Daily FTSE Emerging Markets Bull 1.25x Shares (LLEM), launched 1/7/15, seeks to return 125% of the daily performance of a FTSE index that includes 22 emerging market countries.  China, Taiwan, India, and Brazil each have over a 10% allocation.  Countries included with allocations of less than 0.25% include Czech Republic, Hungary, Pakistan, Malta, Spain, and Morocco.  The fund-of-funds currently invests in Vanguard FTSE Emerging Markets ETF (VWO).  The fund’s expense ratio is capped at 0.50% until 9/1/16 (LLEM overview).
  3. Direxion Daily S&P 500 Bull 1.25x Shares (LLSP), launched 1/7/15, is designed to return 125% of the daily performance of the S&P 500 Index and is a fund-of-funds currently utilizing SPDR S&P 500 ETF (SPY).  Information technology and financials top the sector allocation list.  The ETF’s expense ratio is capped at 0.50% until 9/1/16 (LLSP overview).
  4. Direxion Daily Small Cap Bull 1.25x Shares (LLSC), launched 1/7/15, seeks to return 125% of the daily performance of the Russell 2000 Index.  The fund-of-funds invests in iShares Russell 2000 ETF (IWM).  Financials tops the sector allocations at 24%, and information technology follows at 17%.  The fund’s expense ratio is capped at 0.50% until 9/1/16 (LLSC overview).
  5. Master Income ETF (HIPS), launched 1/7/15, will invest in 300 high income yielding securities, which will typically have pass-through structures.  It will spread the holdings across MLPs, REITs, BDCs, and debt-based closed-end funds.  Based on the underlying index, the initial yield on HIPS is estimated to be about 6.5%.  The fund sports an expense ratio of 0.87% (HIPS overview).
  6. JPMorgan Diversified Return Emerging Markets Equity ETF (JPEM), launched 1/8/15, will provide exposure to large- and mid-cap equity securities from emerging markets.  Stocks are selected using a screening process combining value, momentum, and quality factors, and individual stocks are weighted based on their liquidity.  Up to 20% of its assets may be invested in other exchange traded funds.  The fund is relatively diversified at about 450 holdings, with iShares MSCI India (INDA) being the largest.  JPEM’s expense ratio will be capped at 0.45% until 3/1/16 (JPEM overview).
  7. iShares MSCI International Developed Momentum Factor ETF (IMTM), launched 1/15/15, provides exposure to large- and mid-cap stocks in developed international markets that are displaying higher price momentum over the last 6 to 12 months relative to the other securities in the space.  Japan leads the country allocation at 30%, and health care is on top for sectors at nearly 28%.  Investors will pay 0.30% annually to own this fund (IMTM overview).
  8. iShares MSCI International Developed Quality Factor ETF (IQLT), launched 1/15/15, will select large- and mid-capitalization stocks in developed international markets that are identified as having high quality characteristics.  For this fund, high quality is defined as relatively high return on equity, low debt to equity ratios, and low earnings variability.  The country allocation is led by the U.K. with 25%, and the most represented sector is financials at almost 27%.  The fund’s annual expenses are 0.30% (IQLT overview).
  9. QuantShares Hedged Dividend Income Fund (DIVA), launched 1/15/15, invests in stocks with stable or growing dividends that trade at high yields.  In an effort to reduce risk, short positions will be established in stocks with unstable or low dividends.  The ETF will be rebalanced to 100% long and 50% short at monthly intervals.  The initial yield is estimated to be 3.5%, and the expense ratio will be capped at 0.99% until 10/31/15 (DIVA overview).
  10. ETFS Zacks Earnings Large-Cap U.S. Index Fund (ZLRG), launched 1/20/15, will select holdings from the 1,000 largest U.S. equities based on both a quantitative and qualitative review of their earnings.  The first step is to rank equities by the most significant positive changes in earnings estimates as published by all sell side analysts.  The second step involves identifying firms with the lowest sector-adjusted accruals.  Positions are apportioned into sixteen sectors which are equally weighted, and stocks within each sector are equally weighted.  The fund sports an expense ratio of 0.66% (ZLRG overview).
  11. ETFS Zacks Earnings Small-Cap U.S. Index Fund (ZSML), launched 1/20/15, will select holdings from among the 1,001-3,000 largest U.S. equities based on both a quantitative and qualitative review of their earnings.  First, equities are ranked by the most significant positive changes in earnings estimates as published by sell side analysts.  The top 5% are then ranked by their relative sector-adjusted accruals with lower accruals being ranked higher.  Positions are divided into 15 sectors which are equally weighted, and stocks within each sector are equally weighted.  ZSML’s annual expense ratio is 0.66% (ZSML overview).
  12. ETFS Diversified-Factor Developed Europe Index Fund (SBEU), launched 1/27/15, will select its holdings from the 700 largest and most liquid stocks listed across 16 European countries.  The fund will hold positions based on the following four factors: low volatility, value, momentum, and size.  Once stocks are selected, they will be weighted through a proprietary strategy.  The country allocation is led by the U.K. with 32%, and the most represented sector is financials at almost 23%.  Investors will pay 0.40% annually to own this fund (SBEU overview).
  13. ETFS Diversified-Factor U.S. Large Cap Index Fund (SBUS), launched 1/27/15, will select its holdings from the 500 largest and most liquid stocks listed on U.S. exchanges.  The fund will hold positions based on factors related to low volatility, value, momentum, and size.  Once stocks are selected, they will be weighted through a proprietary strategy.  Of the 500 stocks in the universe, 485 are held in the fund.  SBUS has an expense ratio of 0.40% (SBUS overview).

Product closures/delistings in January:

  1. ProShares Short 30 Year TIPS/TSY Spread (FINF) (ProShares closes 17 ETFs)
  2. ProShares Ultra Russell Midcap Growth (UKW)
  3. ProShares Ultra Russell Midcap Value (UVU)
  4. ProShares Ultra Russell1000 Growth (UKF)
  5. ProShares Ultra Russell1000 Value (UVG)
  6. ProShares Ultra Russell2000 Growth (UKK)
  7. ProShares Ultra Russell2000 Value (UVT)
  8. ProShares Ultra Russell3000 (UWC)
  9. ProShares UltraPro 10 Year TIPS/TSY Spread (UINF)
  10. ProShares UltraPro Short 10yr TIPS/TSY Spread (SINF)
  11. ProShares UltraShort Russell Midcap Growth (SDK)
  12. ProShares UltraShort Russell Midcap Value (SJL)
  13. ProShares UltraShort Russell1000 Growth (SFK)
  14. ProShares UltraShort Russell1000 Value (SJF)
  15. ProShares UltraShort Russell2000 Growth (SKK)
  16. ProShares UltraShort Russell2000 Value (SJH)
  17. ProShares UltraShort Russell3000 (TWQ)
  18. AdvisorShares Accuvest Global Opportunities (ACCU) (AdvisorShares closes 2 funds)
  19. AdvisorShares Athena International Bear ETF (HDGI)
  20. AdvisorShares Gartman Gold/British Pound (GGBP) (AdvisorShares closes 2 currency hedged gold funds)
  21. AdvisorShares International Gold (GLDE)
  22. Russell Equity (ONEF) (Russell closes its last remaining ETF)
  23. Morgan Stanley S&P 500 Crude Oil ETN (BARL) (press release)

Product changes in January:

  1. First Trust Value Line Equity Allocation Index Fund (FVI) underwent an extreme makeover and became the First Trust Total US Market AlphaDEX ETF (TUSA) effective January 12 (press release).
  2. Guggenheim added the word ‘Country’ to the name of Guggenheim MSCI Emerging Markets Equal Country Weight (EWEM) effective January 20.
  3. The Janus purchase of VelocityShares was announced in October, and the deal closed in 2014.  Janus renamed two of the ETFs to Janus Velocity Tail Risk Hedged Large Cap ETF (TRSK) and Janus Velocity Volatility Hedged Large Cap ETF (SPXH) effective January 23.
  4. EGShares Low Volatility Emerging Markets Dividend ETF (HILO) was renamed EGShares EM Quality Dividend ETF (HILO) and began tracking a new index effective January 26.  Prior to 10/28/11, the fund was called EGShares Emerging Markets High Income Low Beta ETF (HILO).

Announced Product Changes for Coming Months:

  1. iShares moves its four allocation ETFs to its Core lineup effective February 2.
  2. WisdomTree Euro Debt Fund (EU) will have its last day of trading on February 11 (press release).

Previous monthly ETF statistics reports are available here.

Disclosure covering writer, editor, publisher, and affiliates: No positions in any of the securities mentioned.  No positions in any of the companies or ETF sponsors mentioned.  No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.