#etfstats

Thirty new ETFs came to market in June, and only two left.  This was the biggest amount of launches since October 2013, and the web enhance of 28 was the largest since February 2012.  The information suggests the industry continues to recuperate from its 2012-2013 slump. The 133 introductions by the yr’s mid-level puts 2015 launch activity on pace to be the third finest ever.  The document 308 introductions of 2011 seem safe for now, as does 2007’s second-finest count of 291.  As June got here to a detailed, there were 1,742 products (1,534 ETFs and 208 ETNs) listed for buying and selling. Not one of the launch or closure exercise in June involved ETNs.  The ETN phase of the market has clearly stalled.  Once they first arrived on the scene, ETNs provided exposure to asset classes that ETFs had been shying away from – specifically commodities, MLPs, and volatility.  As such, traders have been in a position to overlook the “unsecured debt” construction of ETNs in order to get their desired exposure.   However, ETFs have progressively introduced products with related exposures that are also secured by the property within the fund.  The ETN section takes another step backward with the July closure and redemption of all 13 of the RBS ETNs. Foreign money hedging remains a top theme with ETF sponsors.  This sub-group of worldwide funds gained favor the previous few years because the strategy produced good ends in an era of a strengthening US Dollar.  It now appears to be like like a land grab, with sponsors rushing to get forex-hedged variations of each profitable worldwide ETF to market.  In June, WisdomTree added two foreign money-hedged funds to its lineup, Direxion introduced out two with leverage, SPDR added one, and ProShares launched its first two foreign money-hedged ETFs.

Hedge fund replication ETFs have met with restricted success, however that didn’t stop Highland from coming into the arena with three such merchandise.  The frenzy over China A-shares prompted Direxion to introduce an inverse model, and the timing was nearly impeccable.  iShares introduced out two extra issue-based ETFs.  In what seems to be an unusual misstep for BlackRock and its iShares ETFs, considered one of its new funds claims to be a “single-factor” ETF focusing on the “measurement” issue, however it would track a threat-weighted index of huge and mid-cap worldwide stocks.  Maybe it needs to be called a “confusion-factor” ETF.

For the month, trade belongings shrunk 1.8% to $2.1 trillion.  The amount of ETFs with greater than $10 billion in assets decreased from fifty two to 50, but these three% of the listings control 58% of the belongings.  Trading activity topped $1.5 trillion in June, and the eight ETFs that averaged more than $1 billion a day in buying and selling accounted for the majority (fifty three.5%) of all trading activity.

Given lopsided stats like these, it is much simpler to grasp the liquidity risks lurking in the different finish of the product spectrum.  The 877 smallest ETPs symbolize 50.three% of the listings but account for just 1% of the belongings.   There are 1,410 merchandise that average less than $10 million in day by day buying and selling.  Whereas they represent eighty.9% of the listings, they account for only 2.four% of buying and selling.