The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:ETFs Are Hotter Than Ever, Yet the Biz is Still Highly Concentrated Not Rated 1.0 Email Routing List Email & Route  Print Print
Thursday, July 20, 2017

ETFs Are Hotter Than Ever, Yet the Biz is Still Highly Concentrated

News summary by MFWire's editors

ETF inflows this year are triple that of traditional mutual funds, but those ETF inflows remain concentrated in a handful of big, cheap, and largely old ETFs.

$250.2 billion net flowed into U.S.-domiciled ETFs in the first half of 2017, according to a report from Elisabeth Kashner, ETF research and ETF analytics director at FactSet. 50.5 percent of those inflows, Kashner points out, went into just 20 ETFs. Those big ETF winners have a median expense ratio of seven basis points, median AUM of $33.6 billion, and were all launched no later than 2012.

MarketWatch picked up on FactSet's findings.

FactSet's report offers a host of other juicy tidbits. The average expense ratio of a winning ETF (one that gained market share in the first half of the year) was 19 bps, while the average expense ratio for a losing ETF (one that lost market share) was 27 bps.

"Yes, you read that correctly; in 2017, an expensive ETF is one that costs more than 0.20% per year," Kashner writes. "Cost matters, even among dirt-cheap ETFs tracking cap-weighted indexes. These days, every basis point counts, as investors keep pinching pennies."

As for active ETFs, Kashner notes that "active management is gaining market share among U.S.-domiciled ETFs, especially in equities."

"As traditional asset managers continue to look for a point of entry to the ETF landscape, actively managed ETFs may be their best bet," Kashner writes. "In the context of rising interest in ETFs and dwindling interest in older product types, a brutal fee war, and a clear investor preference for broad-based cap-weighted funds over complex or idiosyncratic ones, there aren't any other viable options." 

Edited by: Neil Anderson, Managing Editor

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2022
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use