{"id":4947,"date":"2022-01-15T07:44:28","date_gmt":"2022-01-15T07:44:28","guid":{"rendered":"https:\/\/investwithanedge.com\/?page_id=4947"},"modified":"2022-01-15T07:44:28","modified_gmt":"2022-01-15T07:44:28","slug":"the-vital-few","status":"publish","type":"page","link":"https:\/\/investwithanedge.com\/the-vital-few\/","title":{"rendered":"The Vital Few"},"content":{"rendered":"

\"\"A few months ago I wrote an article about how the 80-20 rule does not apply to ETFs. When it comes to ETF trading, 92% of the activity is confined to just 8% of the actively listed ETFs. I dubbed it the ETF 92-8 Rule. I received several requests to publish a list of the \u201cvital few\u201d, those 8% of the ETF universe that dominate all trading.<\/p>\n

Back in April, I divided all the listed ETFs into Liquidity Tiers, based on their average daily value traded (ADVT). Each higher tier represents an order of magnitude improvement in ADVT. I continue to use this method because it results in a bell-shaped distribution, and the use of ADVT overcomes one of the weaknesses of a volume-only approach.<\/p>\n

The top two tiers (tiers 8 and 9) are members of the ETF Billion Dollar Club, those ETFs that trade more than $1 billion per day on average. As it turns out, the next lower tier, which trade more than $100 million per day, are very close to matching the top 8%.<\/p>\n

When I first computed the 92-8 rule, 8% resulted in 72 funds. To make sure this was not a one-month statistical fluke, I continued to monitor trading over the following months and the 92-8 ratio held strong. It holds once again this month, but growth in the total number of actively listed funds has pushed the quantity to 73.<\/p>\n

Here are the Vital Few for November, the 8% of actively listed ETFs that accounted for 92% of all ETF trading activity last month.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Rank<\/th>\nTicker<\/th>\nName<\/th>\nADVT<\/th>\n<\/tr>\n<\/thead>\n
1<\/td>\nSPY<\/td>\nSPDR S&P; 500<\/td>\n$21,697,312,768<\/td>\n<\/tr>\n
2<\/td>\nQQQQ<\/td>\nPowerShares QQQ<\/td>\n$4,396,277,248<\/td>\n<\/tr>\n
3<\/td>\nEEM<\/td>\niShares MSCI Emerging Markets<\/td>\n$3,361,327,360<\/td>\n<\/tr>\n
4<\/td>\nIWM<\/td>\niShares Russell 2000<\/td>\n$3,297,930,240<\/td>\n<\/tr>\n
5<\/td>\nFAS<\/td>\nDirexion Daily Financial Bull 3x Shares<\/td>\n$2,653,633,024<\/td>\n<\/tr>\n
6<\/td>\nSDS<\/td>\nProShares UltraShort S&P500;<\/td>\n$1,791,905,408<\/td>\n<\/tr>\n
7<\/td>\nFAZ<\/td>\nDirexion Daily Financial Bear 3x Shares<\/td>\n$1,745,907,328<\/td>\n<\/tr>\n
8<\/td>\nGLD<\/td>\nSPDR Gold Trust<\/td>\n$1,668,300,928<\/td>\n<\/tr>\n
9<\/td>\nEWZ<\/td>\niShares MSCI Brazil<\/td>\n$1,593,717,248<\/td>\n<\/tr>\n
10<\/td>\nXLF<\/td>\nSPDR Select Sector Financial<\/td>\n$1,560,165,760<\/td>\n<\/tr>\n
11<\/td>\nXLE<\/td>\nSPDR Select Sector Energy<\/td>\n$1,258,926,208<\/td>\n<\/tr>\n
12<\/td>\nDIA<\/td>\nDow Diamonds<\/td>\n$1,203,879,936<\/td>\n<\/tr>\n
13<\/td>\nEFA<\/td>\niShares MSCI EAFE<\/td>\n$1,026,983,296<\/td>\n<\/tr>\n
14<\/td>\nOIH<\/td>\nHOLDRS Oil Services<\/td>\n$1,023,444,224<\/td>\n<\/tr>\n
15<\/td>\nSSO<\/td>\nProShares Ultra S&P500;<\/td>\n$1,010,408,896<\/td>\n<\/tr>\n
16<\/td>\nIYR<\/td>\niShares DJ US Real Estate<\/td>\n$1,010,136,256<\/td>\n<\/tr>\n
17<\/td>\nFXI<\/td>\niShares FTSE\/Xinhua China 25<\/td>\n$921,325,376<\/td>\n<\/tr>\n
18<\/td>\nUSO<\/td>\nUnited States Oil Fund<\/td>\n$566,885,632<\/td>\n<\/tr>\n
19<\/td>\nSKF<\/td>\nProShares UltraShort Financials<\/td>\n$564,006,336<\/td>\n<\/tr>\n
20<\/td>\nGDX<\/td>\nMarket Vectors Gold Miners<\/td>\n$553,867,648<\/td>\n<\/tr>\n
21<\/td>\nQLD<\/td>\nProShares Ultra QQQ<\/td>\n$538,114,304<\/td>\n<\/tr>\n
22<\/td>\nXRT<\/td>\nSPDR S&P; Retail<\/td>\n$521,541,312<\/td>\n<\/tr>\n
23<\/td>\nQID<\/td>\nProShares UltraShort QQQ<\/td>\n$485,127,040<\/td>\n<\/tr>\n
24<\/td>\nSMH<\/td>\nHOLDRS Semiconductor<\/td>\n$458,298,560<\/td>\n<\/tr>\n
25<\/td>\nTNA<\/td>\nDirexion Daily Small Cap Bull 3x Shares<\/td>\n$455,875,264<\/td>\n<\/tr>\n
26<\/td>\nMDY<\/td>\nSPDR S&P; Midcap<\/td>\n$440,189,984<\/td>\n<\/tr>\n
27<\/td>\nIVV<\/td>\niShares S&P; 500<\/td>\n$405,866,304<\/td>\n<\/tr>\n
28<\/td>\nVWO<\/td>\nVanguard Emerging Markets ETF<\/td>\n$403,113,568<\/td>\n<\/tr>\n
29<\/td>\nTLT<\/td>\niShares Barclays 20+ Year Treasury<\/td>\n$397,501,248<\/td>\n<\/tr>\n
30<\/td>\nBGU<\/td>\nDirexion Daily Large Cap Bull 3x Shares<\/td>\n$385,813,632<\/td>\n<\/tr>\n
31<\/td>\nSRS<\/td>\nProShares UltraShort Real Estate<\/td>\n$359,159,584<\/td>\n<\/tr>\n
32<\/td>\nTZA<\/td>\nDirexion Daily Small Cap Bear 3x Shares<\/td>\n$334,269,920<\/td>\n<\/tr>\n
33<\/td>\nXLI<\/td>\nSPDR Select Sector Industrial<\/td>\n$324,523,648<\/td>\n<\/tr>\n
34<\/td>\nXLB<\/td>\nSPDR Select Sector Materials<\/td>\n$320,953,248<\/td>\n<\/tr>\n
35<\/td>\nUNG<\/td>\nUnited States Natural Gas Fund LP<\/td>\n$319,692,160<\/td>\n<\/tr>\n
36<\/td>\nTBT<\/td>\nProShares UltraShort 20+ Yr Treasury<\/td>\n$277,829,696<\/td>\n<\/tr>\n
37<\/td>\nIYF<\/td>\niShares DJ US Financial<\/td>\n$249,896,448<\/td>\n<\/tr>\n
38<\/td>\nRTH<\/td>\nHOLDRS Retail<\/td>\n$248,660,224<\/td>\n<\/tr>\n
39<\/td>\nEWJ<\/td>\niShares MSCI Japan<\/td>\n$248,037,216<\/td>\n<\/tr>\n
40<\/td>\nDXD<\/td>\nProShares UltraShort Dow 30<\/td>\n$235,221,520<\/td>\n<\/tr>\n
41<\/td>\nBGZ<\/td>\nDirexion Daily Large Cap Bear 3x Shares<\/td>\n$234,851,696<\/td>\n<\/tr>\n
42<\/td>\nXLU<\/td>\nSPDR Select Sector Utilities<\/td>\n$222,871,856<\/td>\n<\/tr>\n
43<\/td>\nXLK<\/td>\nSPDR Select Sector Technology<\/td>\n$186,283,536<\/td>\n<\/tr>\n
44<\/td>\nSH<\/td>\nProShares Short S&P500;<\/td>\n$184,199,152<\/td>\n<\/tr>\n
45<\/td>\nXLV<\/td>\nSPDR Select Sector Health Care<\/td>\n$181,440,368<\/td>\n<\/tr>\n
46<\/td>\nEWY<\/td>\niShares MSCI South Korea<\/td>\n$181,414,800<\/td>\n<\/tr>\n
47<\/td>\nDIG<\/td>\nProShares Ultra Oil & Gas<\/td>\n$178,982,896<\/td>\n<\/tr>\n
48<\/td>\nUYG<\/td>\nProShares Ultra Financials<\/td>\n$177,912,272<\/td>\n<\/tr>\n
49<\/td>\nEWT<\/td>\niShares MSCI Taiwan<\/td>\n$174,299,536<\/td>\n<\/tr>\n
50<\/td>\nSLV<\/td>\niShares Silver Trust<\/td>\n$171,714,496<\/td>\n<\/tr>\n
51<\/td>\nXLP<\/td>\nSPDR Select Sector Consumer Staples<\/td>\n$167,262,864<\/td>\n<\/tr>\n
52<\/td>\nXLY<\/td>\nSPDR Select Sector Consumer Discretionary<\/td>\n$166,765,888<\/td>\n<\/tr>\n
53<\/td>\nEWW<\/td>\niShares MSCI Mexico<\/td>\n$163,225,280<\/td>\n<\/tr>\n
54<\/td>\nURE<\/td>\nProShares Ultra Real Estate<\/td>\n$163,112,416<\/td>\n<\/tr>\n
55<\/td>\nIWB<\/td>\niShares Russell 1000<\/td>\n$161,910,848<\/td>\n<\/tr>\n
56<\/td>\nXME<\/td>\nSPDR S&P; Metals & Mining<\/td>\n$160,943,120<\/td>\n<\/tr>\n
57<\/td>\nUPRO<\/td>\nProShares UltraPro S&P; 500<\/td>\n$157,108,448<\/td>\n<\/tr>\n
58<\/td>\nTWM<\/td>\nProShares UltraShort Russell 2000<\/td>\n$155,546,944<\/td>\n<\/tr>\n
59<\/td>\nKBE<\/td>\nSPDR KBW Bank ETF<\/td>\n$154,169,392<\/td>\n<\/tr>\n
60<\/td>\nVNQ<\/td>\nVanguard REIT ETF<\/td>\n$140,859,232<\/td>\n<\/tr>\n
61<\/td>\nEWA<\/td>\niShares MSCI Australia<\/td>\n$137,823,680<\/td>\n<\/tr>\n
62<\/td>\nDDM<\/td>\nProShares Ultra Dow 30<\/td>\n$137,229,520<\/td>\n<\/tr>\n
63<\/td>\nERX<\/td>\nDirexion Daily Energy Bull 3x Shares<\/td>\n$135,327,920<\/td>\n<\/tr>\n
64<\/td>\nTIP<\/td>\niShares Barclays TIPS Fund<\/td>\n$125,304,240<\/td>\n<\/tr>\n
65<\/td>\nLQD<\/td>\niShares iBoxx $ Investment Grade Corp Bd<\/td>\n$123,006,112<\/td>\n<\/tr>\n
66<\/td>\nXHB<\/td>\nSPDR S&P; Homebuilders<\/td>\n$122,937,880<\/td>\n<\/tr>\n
67<\/td>\nRSX<\/td>\nMarket Vectors Russia ETF<\/td>\n$121,374,488<\/td>\n<\/tr>\n
68<\/td>\nIWF<\/td>\niShares Russell 1000 Growth<\/td>\n$121,355,384<\/td>\n<\/tr>\n
69<\/td>\nSPXU<\/td>\nProShares UltraPro Short S&P; 500<\/td>\n$118,897,224<\/td>\n<\/tr>\n
70<\/td>\nIWO<\/td>\niShares Russell 2000 Growth<\/td>\n$118,649,672<\/td>\n<\/tr>\n
71<\/td>\nKRE<\/td>\nSPDR KBW Regional Banking ETF<\/td>\n$117,048,472<\/td>\n<\/tr>\n
72<\/td>\nILF<\/td>\niShares S&P; Latin America 40<\/td>\n$110,457,576<\/td>\n<\/tr>\n
73<\/td>\nEDC<\/td>\nDirexion Daily Emerging Markets Bull 3x<\/td>\n$107,974,200<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

A few months ago I wrote an article about how the 80-20 rule does not apply to ETFs. When it comes to ETF trading, 92% of the activity is confined to just 8% of the actively listed ETFs. I dubbed it the ETF 92-8 Rule. I received several requests to publish a list of the …<\/p>\n","protected":false},"author":4,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"acf":[],"_links":{"self":[{"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/pages\/4947"}],"collection":[{"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/comments?post=4947"}],"version-history":[{"count":1,"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/pages\/4947\/revisions"}],"predecessor-version":[{"id":4949,"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/pages\/4947\/revisions\/4949"}],"wp:attachment":[{"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/media?parent=4947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}