Thirteen new ETFs launched in July, but no ETNs came on the scene. For the first time in twelve months, there was not any closure activity. The quantity of listed products climbed to 1,491 at the end of July, consisting of 1,286 ETFs and 205 ETNs. Only one of the new ETFs is actively managed, increasing the quantity of actively managed ETFs to 62, or about 4% of the population.
Trading activity dropped dramatically to just $1.21 trillion, a 27.4% decrease from the June amount. There were 10% more trading days in July (22 versus 20), so the average daily dollar volume plunged a whopping 34.0%. SPDR S&P 500 ETF (SPY) accounted for 32.1%, or $17.6 billion, of daily ETP trading activity.
As a result of the trading drought, the number of ETFs averaging more than $1 billion a day in trading shrank from thirteen to just five. Additionally, these top-tier trading vehicles captured only 48.1% of the total dollar volume, failing to surpass the 50% mark for the first time in memory. ETPs averaging more than $100 million of daily trading dropped from 85 to 71, yet still captured an 86% market share.
Although trading died down, the month was very kind to ETF sponsors as assets under management increased 6.7% to $1.5 trillion. The number of ETFs exceeding $10 billion in assets increased from 33 to 35 and accounted for 54.3% of all ETP assets. ETPs with more than $1 billion in assets now number 203 and have an 88.6% market share.
The decrease in trading activity and the increase in product assets combined to reduce the monthly turnover ratio (total dollar volume divided by assets under management) from 1.16 to 0.79.
|July 2013 Month End||ETFs||ETNs||Total|
|Currently Listed U.S.||1,286||205||1,491|
|Listed as of 12/31/2012||1,239||206||1,445|
|New Introductions for Month||13||0||13|
|Delistings/Closures for Month||0||0||0|
|Net Change for Month||+13||0||+13|
|New Introductions 6 Months||74||6||80|
|New Introductions YTD||77||8||85|
|Net Change YTD||+47||-1||+46|
|Assets Under Mgmt ($ billion)||$1,513||$20.6||$1,536|
|% Change in Assets for Month||+6.7%||+3.8%||+6.7%|
|Qty AUM > $10 Billion||35||0||35|
|Qty AUM > $1 Billion||198||5||203|
|Qty AUM > $100 Million||619||26||645|
|% with AUM > $100 Million||48.1%||12.7%||43.3%|
|Monthly $ Volume ($ billion)||$1,183||$26.1||$1,209|
|% Change in Monthly $ Volume||-27.0%||-44.1%||-27.4%|
|Avg Daily $ Volume > $1 Billion||5||0||5|
|Avg Daily $ Volume > $100 Million||69||2||71|
|Avg Daily $ Volume > $10 Million||251||8||259|
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 July (sorted by launch date):
- EGShares Emerging Markets Dividend Growth ETF (EMDG), launched 7/1/13, follows the FTSE Emerging All Cap ex-Taiwan Diversified Capped Dividend Growth 50 Index with an expense ratio of 0.85% and an expected yield of 3.0% (EMDG overview).
- SPDR Russell 2000 ETF (TWOK), launched 7/9/13, will compete with iShares Russell 2000 ETF (IWM), the 13-year old entrenched small cap ETF leader. TWOK offers a slightly lower expense ratio than IWM (0.18% versus 0.26%), and its expected yield is 1.4% (TWOK overview).
- iSharesBond 2016 Corporate Term ETF (IBDA), launched 7/10/13, holds U.S. dollar denominated investment-grade corporate bonds maturing in the 12 months preceding April 1, 2016. IBDA has 173 holdings, an average yield to maturity of 1.23%, an effective duration of 2.25 years, and an expense ratio of 0.10% (IBDA overview). See iShares Term Bonds: Great Idea, Poor Execution.
- iSharesBond 2018 Corporate Term ETF (IBDB), launched 7/10/13, holds U.S. dollar denominated investment-grade corporate bonds maturing in the 12 months preceding April 1, 2018. IBDB has 183 holdings, an average yield to maturity of 2.33%, an effective duration of 3.86 years, and an expense ratio of 0.10% (IBDB overview).
- iSharesBond 2020 Corporate Term ETF (IBDC), launched 7/10/13, holds U.S. dollar denominated investment-grade corporate bonds maturing in the 12 months preceding April 1, 2020. IBDC has 126 holdings, an average yield to maturity of 3.27%, an effective duration of 5.16 years, and an expense ratio of 0.10% (IBDC overview).
- iSharesBond 2023 Corporate Term ETF (IBDD), launched 7/10/13, holds U.S. dollar denominated investment-grade corporate bonds maturing in the 12 months preceding April 1, 2023. IBDD has 195 holdings, an average yield to maturity of 3.83%, an effective duration of 7.67 years, and an expense ratio of 0.10% (IBDD overview).
- Guggenheim BulletShares 2021 Corporate Bond ETF (BSCL), launched 7/17/13, holds U.S. dollar denominated investment-grade corporate bonds maturing in calendar year 2021. BSCL has 66 holdings, an average yield to maturity of 3.63%, an average duration of 6.8 years, and an expense ratio of 0.24% (BSCL overview).
- Guggenheim BulletShares 2022 Corporate Bond ETF (BSCM), launched 7/17/13, holds U.S. dollar denominated investment-grade corporate bonds maturing in calendar year 2022. BSCM currently has 33 holdings, an average yield to maturity of 3.83%, an average duration of 7.7 years, and an expense ratio of 0.24% (BSCM overview).
- iShares MSCI USA Quality Factor ETF (QUAL), launched 7/18/13, will hold quality growth stocks defined as those with high return on equity (ROE), stable year-over-year earnings growth, and low financial leverage. QUAL has 124 holdings and a 0.15% expense ratio (QUAL overview).
- AdvisorShares Athena International Bear ETF (HDGI), launched 7/19/13, is the first actively managed international short-selling ETF. HDGI is managed by AthenaInvest Advisors LLC using a behavioral finance approach to security selection, and it has expenses capped at 2.0% (HDGI overview page and HDGI new product review).
- KraneShares CSI China Five Year Plan ETF (KFYP), launched 7/23/13, seeks to track an index of publicly traded China-based companies whose primary business is important in the Chinese government’s current Five-Year Plan. This is the first product from new ETF sponsor KraneShares, and the fund has a 0.68% expense ratio (KFYP overview).
- WisdomTree U.S. SmallCap Dividend Growth Fund (DGRS), launched 7/25/13, claims to be the first fund focusing on the U.S. market’s small-cap dividend growth leaders. DGRS tracks a WisdomTree index and has an expense ratio of 0.38% (DGRS overview).
- VelocityShares Equal Risk Weighted Large Cap Fund (ERW), launched 7/30/13, is an indexed ETF that holds the stocks from the S&P 500 and equal weights them based on a proprietary (“secret”) method of defining risk. ERW has a 0.65% expense ratio (ERW overview).
Product closures/delistings in July:
Product changes in July:
- 270 iShares ETFs received new names effective July 1.
- Seven Market Vectors ETFs (GEX, NLR, RSXJ, EGPT, REMX, GDXJ, and SCIF) underwent reverse splits effective July 1.
- SPDR Dow Jones Total Market ETF (TMW) became the SPDR Russell 3000 ETF (THRK) effective July 9.
- SPDR Dow Jones Large Cap ETF (ELR) became the SPDR Russell 1000 ETF (ONEK) effective July 9.
- SPDR Dow Jones Mid Cap ETF (EMM) underwent an extreme makeover that changed the majority of its portfolio effective July 9. It is now the SPDR Russell Small Cap Completeness ETF (RSCO).
Announced Product Changes for Coming Months:
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.