{"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
Rank<\/th>\n | Ticker<\/th>\n | Name<\/th>\n | ADVT<\/th>\n<\/tr>\n<\/thead>\n |
---|---|---|---|
1<\/td>\n | SPY<\/td>\n | SPDR S&P; 500<\/td>\n | $21,697,312,768<\/td>\n<\/tr>\n |
2<\/td>\n | QQQQ<\/td>\n | PowerShares QQQ<\/td>\n | $4,396,277,248<\/td>\n<\/tr>\n |
3<\/td>\n | EEM<\/td>\n | iShares MSCI Emerging Markets<\/td>\n | $3,361,327,360<\/td>\n<\/tr>\n |
4<\/td>\n | IWM<\/td>\n | iShares Russell 2000<\/td>\n | $3,297,930,240<\/td>\n<\/tr>\n |
5<\/td>\n | FAS<\/td>\n | Direxion Daily Financial Bull 3x Shares<\/td>\n | $2,653,633,024<\/td>\n<\/tr>\n |
6<\/td>\n | SDS<\/td>\n | ProShares UltraShort S&P500;<\/td>\n | $1,791,905,408<\/td>\n<\/tr>\n |
7<\/td>\n | FAZ<\/td>\n | Direxion Daily Financial Bear 3x Shares<\/td>\n | $1,745,907,328<\/td>\n<\/tr>\n |
8<\/td>\n | GLD<\/td>\n | SPDR Gold Trust<\/td>\n | $1,668,300,928<\/td>\n<\/tr>\n |
9<\/td>\n | EWZ<\/td>\n | iShares MSCI Brazil<\/td>\n | $1,593,717,248<\/td>\n<\/tr>\n |
10<\/td>\n | XLF<\/td>\n | SPDR Select Sector Financial<\/td>\n | $1,560,165,760<\/td>\n<\/tr>\n |
11<\/td>\n | XLE<\/td>\n | SPDR Select Sector Energy<\/td>\n | $1,258,926,208<\/td>\n<\/tr>\n |
12<\/td>\n | DIA<\/td>\n | Dow Diamonds<\/td>\n | $1,203,879,936<\/td>\n<\/tr>\n |
13<\/td>\n | EFA<\/td>\n | iShares MSCI EAFE<\/td>\n | $1,026,983,296<\/td>\n<\/tr>\n |
14<\/td>\n | OIH<\/td>\n | HOLDRS Oil Services<\/td>\n | $1,023,444,224<\/td>\n<\/tr>\n |
15<\/td>\n | SSO<\/td>\n | ProShares Ultra S&P500;<\/td>\n | $1,010,408,896<\/td>\n<\/tr>\n |
16<\/td>\n | IYR<\/td>\n | iShares DJ US Real Estate<\/td>\n | $1,010,136,256<\/td>\n<\/tr>\n |
17<\/td>\n | FXI<\/td>\n | iShares FTSE\/Xinhua China 25<\/td>\n | $921,325,376<\/td>\n<\/tr>\n |
18<\/td>\n | USO<\/td>\n | United States Oil Fund<\/td>\n | $566,885,632<\/td>\n<\/tr>\n |
19<\/td>\n | SKF<\/td>\n | ProShares UltraShort Financials<\/td>\n | $564,006,336<\/td>\n<\/tr>\n |
20<\/td>\n | GDX<\/td>\n | Market Vectors Gold Miners<\/td>\n | $553,867,648<\/td>\n<\/tr>\n |
21<\/td>\n | QLD<\/td>\n | ProShares Ultra QQQ<\/td>\n | $538,114,304<\/td>\n<\/tr>\n |
22<\/td>\n | XRT<\/td>\n | SPDR S&P; Retail<\/td>\n | $521,541,312<\/td>\n<\/tr>\n |
23<\/td>\n | QID<\/td>\n | ProShares UltraShort QQQ<\/td>\n | $485,127,040<\/td>\n<\/tr>\n |
24<\/td>\n | SMH<\/td>\n | HOLDRS Semiconductor<\/td>\n | $458,298,560<\/td>\n<\/tr>\n |
25<\/td>\n | TNA<\/td>\n | Direxion Daily Small Cap Bull 3x Shares<\/td>\n | $455,875,264<\/td>\n<\/tr>\n |
26<\/td>\n | MDY<\/td>\n | SPDR S&P; Midcap<\/td>\n | $440,189,984<\/td>\n<\/tr>\n |
27<\/td>\n | IVV<\/td>\n | iShares S&P; 500<\/td>\n | $405,866,304<\/td>\n<\/tr>\n |
28<\/td>\n | VWO<\/td>\n | Vanguard Emerging Markets ETF<\/td>\n | $403,113,568<\/td>\n<\/tr>\n |
29<\/td>\n | TLT<\/td>\n | iShares Barclays 20+ Year Treasury<\/td>\n | $397,501,248<\/td>\n<\/tr>\n |
30<\/td>\n | BGU<\/td>\n | Direxion Daily Large Cap Bull 3x Shares<\/td>\n | $385,813,632<\/td>\n<\/tr>\n |
31<\/td>\n | SRS<\/td>\n | ProShares UltraShort Real Estate<\/td>\n | $359,159,584<\/td>\n<\/tr>\n |
32<\/td>\n | TZA<\/td>\n | Direxion Daily Small Cap Bear 3x Shares<\/td>\n | $334,269,920<\/td>\n<\/tr>\n |
33<\/td>\n | XLI<\/td>\n | SPDR Select Sector Industrial<\/td>\n | $324,523,648<\/td>\n<\/tr>\n |
34<\/td>\n | XLB<\/td>\n | SPDR Select Sector Materials<\/td>\n | $320,953,248<\/td>\n<\/tr>\n |
35<\/td>\n | UNG<\/td>\n | United States Natural Gas Fund LP<\/td>\n | $319,692,160<\/td>\n<\/tr>\n |
36<\/td>\n | TBT<\/td>\n | ProShares UltraShort 20+ Yr Treasury<\/td>\n | $277,829,696<\/td>\n<\/tr>\n |
37<\/td>\n | IYF<\/td>\n | iShares DJ US Financial<\/td>\n | $249,896,448<\/td>\n<\/tr>\n |
38<\/td>\n | RTH<\/td>\n | HOLDRS Retail<\/td>\n | $248,660,224<\/td>\n<\/tr>\n |
39<\/td>\n | EWJ<\/td>\n | iShares MSCI Japan<\/td>\n | $248,037,216<\/td>\n<\/tr>\n |
40<\/td>\n | DXD<\/td>\n | ProShares UltraShort Dow 30<\/td>\n | $235,221,520<\/td>\n<\/tr>\n |
41<\/td>\n | BGZ<\/td>\n | Direxion Daily Large Cap Bear 3x Shares<\/td>\n | $234,851,696<\/td>\n<\/tr>\n |
42<\/td>\n | XLU<\/td>\n | SPDR Select Sector Utilities<\/td>\n | $222,871,856<\/td>\n<\/tr>\n |
43<\/td>\n | XLK<\/td>\n | SPDR Select Sector Technology<\/td>\n | $186,283,536<\/td>\n<\/tr>\n |
44<\/td>\n | SH<\/td>\n | ProShares Short S&P500;<\/td>\n | $184,199,152<\/td>\n<\/tr>\n |
45<\/td>\n | XLV<\/td>\n | SPDR Select Sector Health Care<\/td>\n | $181,440,368<\/td>\n<\/tr>\n |
46<\/td>\n | EWY<\/td>\n | iShares MSCI South Korea<\/td>\n | $181,414,800<\/td>\n<\/tr>\n |
47<\/td>\n | DIG<\/td>\n | ProShares Ultra Oil & Gas<\/td>\n | $178,982,896<\/td>\n<\/tr>\n |
48<\/td>\n | UYG<\/td>\n | ProShares Ultra Financials<\/td>\n | $177,912,272<\/td>\n<\/tr>\n |
49<\/td>\n | EWT<\/td>\n | iShares MSCI Taiwan<\/td>\n | $174,299,536<\/td>\n<\/tr>\n |
50<\/td>\n | SLV<\/td>\n | iShares Silver Trust<\/td>\n | $171,714,496<\/td>\n<\/tr>\n |
51<\/td>\n | XLP<\/td>\n | SPDR Select Sector Consumer Staples<\/td>\n | $167,262,864<\/td>\n<\/tr>\n |
52<\/td>\n | XLY<\/td>\n | SPDR Select Sector Consumer Discretionary<\/td>\n | $166,765,888<\/td>\n<\/tr>\n |
53<\/td>\n | EWW<\/td>\n | iShares MSCI Mexico<\/td>\n | $163,225,280<\/td>\n<\/tr>\n |
54<\/td>\n | URE<\/td>\n | ProShares Ultra Real Estate<\/td>\n | $163,112,416<\/td>\n<\/tr>\n |
55<\/td>\n | IWB<\/td>\n | iShares Russell 1000<\/td>\n | $161,910,848<\/td>\n<\/tr>\n |
56<\/td>\n | XME<\/td>\n | SPDR S&P; Metals & Mining<\/td>\n | $160,943,120<\/td>\n<\/tr>\n |
57<\/td>\n | UPRO<\/td>\n | ProShares UltraPro S&P; 500<\/td>\n | $157,108,448<\/td>\n<\/tr>\n |
58<\/td>\n | TWM<\/td>\n | ProShares UltraShort Russell 2000<\/td>\n | $155,546,944<\/td>\n<\/tr>\n |
59<\/td>\n | KBE<\/td>\n | SPDR KBW Bank ETF<\/td>\n | $154,169,392<\/td>\n<\/tr>\n |
60<\/td>\n | VNQ<\/td>\n | Vanguard REIT ETF<\/td>\n | $140,859,232<\/td>\n<\/tr>\n |
61<\/td>\n | EWA<\/td>\n | iShares MSCI Australia<\/td>\n | $137,823,680<\/td>\n<\/tr>\n |
62<\/td>\n | DDM<\/td>\n | ProShares Ultra Dow 30<\/td>\n | $137,229,520<\/td>\n<\/tr>\n |
63<\/td>\n | ERX<\/td>\n | Direxion Daily Energy Bull 3x Shares<\/td>\n | $135,327,920<\/td>\n<\/tr>\n |
64<\/td>\n | TIP<\/td>\n | iShares Barclays TIPS Fund<\/td>\n | $125,304,240<\/td>\n<\/tr>\n |
65<\/td>\n | LQD<\/td>\n | iShares iBoxx $ Investment Grade Corp Bd<\/td>\n | $123,006,112<\/td>\n<\/tr>\n |
66<\/td>\n | XHB<\/td>\n | SPDR S&P; Homebuilders<\/td>\n | $122,937,880<\/td>\n<\/tr>\n |
67<\/td>\n | RSX<\/td>\n | Market Vectors Russia ETF<\/td>\n | $121,374,488<\/td>\n<\/tr>\n |
68<\/td>\n | IWF<\/td>\n | iShares Russell 1000 Growth<\/td>\n | $121,355,384<\/td>\n<\/tr>\n |
69<\/td>\n | SPXU<\/td>\n | ProShares UltraPro Short S&P; 500<\/td>\n | $118,897,224<\/td>\n<\/tr>\n |
70<\/td>\n | IWO<\/td>\n | iShares Russell 2000 Growth<\/td>\n | $118,649,672<\/td>\n<\/tr>\n |
71<\/td>\n | KRE<\/td>\n | SPDR KBW Regional Banking ETF<\/td>\n | $117,048,472<\/td>\n<\/tr>\n |
72<\/td>\n | ILF<\/td>\n | iShares S&P; Latin America 40<\/td>\n | $110,457,576<\/td>\n<\/tr>\n |
73<\/td>\n | EDC<\/td>\n | Direxion 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}]}} |