ETF Playbooks Archives
Financials Category Report
3.18.2024
- Financials ETFs saw $1.65 billion in net outflows in February but have gathered $1.32 billion in net inflows over the past 3 months
- The Financial Select Sector SPDR Fund (XLF) saw the largest net outflows in February with $787 million
- The SPDR S&P Bank ETF (KBE) and the SPDR S&P Regional Bank ETF (KRE) each saw more than $300 million in net outflows on the month
- The Financials category is comprised of 37 ETFs with $66.3 billion in total assets under management
- XLF is the largest ETF in the category with $37.2 billion in AUM
- The cheapest ETF in the category is the Gabelli Financial Services Opportunities ETF (GABF) with an expense ratio of 4 bps
- 13 of the 37 ETFs in the category have Low Liquidity ratings, average ADV for the category is $72.94 million
- 21 of the 37 Financials ETFs posted gains last month, average return was -0.07%
- The Invesco KBW Regional Banking ETF (KBWR) and KRE underperformed in February, both sinking more than 9%
- Average 3-month return for the category is +10.30% and average 1-year return is +8.11%
- The category has high/ above average value ratings and high/ above average volatility ratings
Disruptive Tech Category Report
3.13.2024
- Disruptive Tech ETFs gathered $910 million in net inflows in February and have seen $1.34 billion in net inflows over the past 3 months
- The First Trust NASDAQ Cybersecurity ETF (CIBR) saw $392 million in net inflows on the month and the Global X Artificial Intelligence & Technology ETF (AIQ) saw $257 million in net inflows
- The average expense ratio of the 48 Disruptive Tech ETFs is 59 bps, the average lifespan is 4.73 years, and the average TTM yield is 0.85%
- CIBR is the largest ETF in the category with $6.8 billion in AUM, total category has $21.4 billion in AUM
- 31 of the 48 ETFs in the category have low liquidity ratings, average ADV is 3.62 million
- The Xtrackers Cybersecurity Select Equity ETF (PSWD) is the cheapest ETF in the category with an expense ratio of 20 bps
- 41 of the 48 Disruptive Tech ETFs posted gains last month, average return was +3.75%, average 3-month return was +14.11%
- The KraneShares CICC China 5G & Semiconductor Index ETF (KFVG) was the best performer in February, jumping 14.57%
- The category has high and above average volatility ratings, average 3-year annualized volatility vs the S&P 500 (SPY) is 25.94%
- Disruptive Tech ETFs are also highly tilted towards large-cap growth names, heavy tilt to Technology (71.9% average sector exposure)
U.S. Large Cap Equity Category Report
3.12.2024
- U.S. Large-Cap Equity ETFs gathered $28.54 billion in net inflows in February
- The SPDR S&P 500 ETF Trust (SPY) saw $5.9 billion in net outflows in February while the Vanguard S&P 500 ETF (VOO) and the the iShares Core S&P 500 ETF (IVV) each gathered more than $6 billion in net inflows
- The average expense ratio of the 509 U.S. Mid-Cap Equity ETFs in the category is 40 bps, the average lifespan is 7.18 years, and the average TTM yield is 1.20%
- 252 ETFs in the category have low liquidity ratings compared to 88 ETFs in the category with high liquidity ratings
- 500 U.S. Large-Cap Equity ETFs saw positive returns in February, average 1-month return was +3.25%
- The Renaissance IPO ETF (IPO) and the Invesco S&P 500 Momentum ETF (SPMO) each jumped more than 10% last month
- The average 3-year annualized return for the category is +5.74%
- Average top 10 holdings weight for the category is 31.41%
- Top average sector exposure for the category is Technology (23.8%), Financials (13.7%), and Health Care (11.8%)
Technology Category Report
3.11.2024
- Technology ETFs gathered $7.71 billion in net inflows in February and have gathered nearly $20 billion in net inflows over the past year
- The Vanguard Information Technology ETF (VGT) saw the largest net inflows on the month with $5.8 billion while the iShares Semiconductor ETF (SOXX) saw $407 million in net outflows
- The 40 Technology ETFs in the category have $227 billion in total assets under management, VGT and the Technology Select Sector SPDR Fund (XLK) each have more than $63 billion in total AUM
- The Fidelity MSCI Information Technology Index ETF (FTEC) is the cheapest ETF in the category with an expense ratio of 8 bps
- The average expense ratio of the category is 46 bps, the average TTM Yield is 0.45%, and the average lifespan is 12.63 years
- 37 of the 40 Technology ETFs registered positive returns in February, the VanEck Semiconductor ETF (SMH, +11.27%) was the best performer
- The category has high volatility ratings and above average growth ratings
- The average top 10 holdings weight for the category is 52.65% and the average price to earnings (TTM) is 31.19
FI Corporate Category Report
3.7.2024
- The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) each saw more than $2.2 billion in net outflows in February
- Meanwhile, the Vanguard Long-Term Corporate Bond ETF (VCLT) gathered $612 million in net inflows on the month
- The Vanguard Intermediate-Term Corporate Bond ETF (VCIT) is the largest ETF in the category with $45.8 billion in total assets under management
- The average expense ratio of the category is 28 bps, the average lifespan is 6.20 years, and the average TTM Yield is 4.38%
- Most of the 162 Corporate Bond ETFs posted losses in February, the average 1-month return for the category was -0.37% and the average 1-year return was +7.33%
- The BondBloxx CCC-Rated USD High Yield Corporate Bond ETF (XCCC) was the top performing Corporate Bond ETF on the month, rising 2.13%
- The average yield to maturity is 6.32%, the average effective duration is 4.36, and the average effective convexity is 0.28
Industrial Revolution Category Report
3.6.2024
- Despite solid performance for the month, Industrial Revolution ETFs saw modest net inflows in February
- The Global X Robotics & Artificial Intelligence ETF (BOTZ) saw the largest net inflows on the month with $79.7 million
- The ARK Autonomous Technology & Robotics ETF (ARKQ) saw the largest net outflows in February with $54.2 million
- BOTZ is the largest ETF in the category with $2.6 billion in AUM followed by the ROBO Global Robotics & Automation Index ETF (ROBO) with $1.3 billion in AUM
- The cheapest Industrial Revolution ETF is the Fidelity Electric Vehicles and Future Transportation ETF (FRDV) with an expense ratio of 39 bps
- Just 3 ETFs in the category saw losses last month, average 1-month return was +3.47%, average 1-year return was +7.34%
- The Global X Defense Tech ETF (SHLD) outpaced other Industrial Revolution ETFs in February, jumping 10.23%
- The category has high and above average volatility ratings, the average 3-year volatility relative to the S&P 500 (SPY) was 27.36%
- The category has high sector exposure to Technology, Industrials, and Consumer Discretionary
- Industrial Revolution ETFs have a strong tilt towards Large-Cap Growth names
Single Country Developed Ex-U.S. Markets Category Report
3.5.2024
- The WisdomTree Japan Hedged Equity Fund (DXJ) and the iShares MSCI Japan ETF (EWJ) each gathered more than $500 million in net inflows in February
- Over the past year, EWJ has gathered $4.2 billion in net inflows, the JPMorgan BetaBuilders Japan ETF (BBJP) has gathered $2.3 billion in net inflows, and DXJ has gathered $1.8 billion in net inflows
- The iShares MSCI Canada ETF (EWC) saw $229 million in net ouflows in February and has seen $1.2 billion in net outflows in the last year
- EWJ is the largest ETF amongst Single Country Developed ex-U.S. Markets ETFs with $16.3 billion in AUM
- The average expense ratio of the 56 ETFs in the category is 45 bps, the average lifespan is 15.55 years, and the average TTM yield is 3.20%
- 21 ETFs in the category have low liquidity ratings and 12 ETFs have below average liquidity ratings, average ADV is $24.15 million
- DXJ and the iShares MSCI ETF (EWI) both climbed more than 7% in February while the iShares New Zealand ETF (ENZL) slipped 4.62%
- DXJ has rocketed nearly 53% in the past year and 3 other Japan Hedged ETFs (HEWJ, DBJP, FLHJ) have all risen more than 40% in the period
- The Xtrackers MSCI Germany Hedged Equity ETF (DBGR) has the lowest volatility rating in the category
- Highest average sector exposure is Financials (20.4%), Industrials (18.4%), Consumer Discretionary (12.1%) and Technology (11.2%)
FI Government Category Report
2.29.2024
- Fixed Income Government ETFs gathered $1.18 billion in net inflows in January but have seen $7.85 billion in net outflows over the past 3 months
- The iShares 7-10 Year Treasury Bond ETF (IEF) gathered $1.65 billion in net inflows on the month while the iShares 20+ Year Treasury Bond ETF (TLT) saw $1.42 billion in net outflows
- TLT is the largest ETF in the category with $49.6 billion in total assets under management
- The average expense ratio of the category is 13 bps, the average lifespan is 6.96 years, and the average TTM Yield is 2.51%
- The average 1-month return for the category was -0.12% and the average 1-year return was +0.81%
- Longer duration ETFs in the category underperformed in January with the PIMCO 25+ Year Zero Coupon US Treasury Index ETF (ZROZ) and the iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) each falling more than 5%
- The category has above average credit quality, average/below average yield, and a varying degree of duration between funds
Sustainability Category Report
2.28.2024
- Sustainability ETFs have seen net outflows across the 1-month, 3-month, 1-year and 3-year periods
- In January, the iShares Global Clean Energy ETF (ICLN) saw $239 million in net outflows and the Invesco Solar ETF (TAN) saw $101 million in net outflows
- ICLN has seen $1.2 billion in net outflows over the past year but is still the largest ETF in the category with $2.5 billion in assets under management
- The average expense ratio of the 52 Sustainability ETFs is 60 bps, the average lifespan is almost 6 years, and the average TTM yield is 1.59%
- The category has relatively high expense ratios and low liquidity relative to the broader market
- The average ADV for the cateogry is just $3.11 million and 41 ETFs in the category have low liquidity ratings
- Sustainability ETFs underperfomed the broader market in January with the average return at -9.19%
- The KraneShares MSCI China Clean Technology Index ETF (KRGN), TAN, and the Invesco WilderHill Clean Energy ETF (PBW) all plummeted more than 20% on the month
- Average 1-year return is -17.22% and the average 3-year annualized return for the category is -6.14%
- The category has above average stock concentration and above average/ high volatility ratings
- Highest average sector exposure is Industrials (32.4%), Utilities (23.8%), and Technology (14.8%)
Emerging Markets Category Report
2.27.2024
- Emerging Market Equity ETFs gathered nearly $1.10 billion in net inflows in $1.10 billion in January and nearly $7 billion in net inflows in the past 3 months
- The iShares MSCI Emerging Markets ex China ETF (EMXC) have seen the largest net inflows over the past year with $5.4 billion, the iShares MSCI Emerging Markets ETF (EEM) has seen $7.5 billion in net outflows in the period
- The average expense ratio of the 83 Emerging Markets Equity ETFs in the category is 48 bps, the average lifespan is 7.18 years, and the average TTM yield is 2.85%
- Notably, 42 ETFs in the category have low liquidity ratings compared to 13 ETFs in the category with high liquidity ratings
- The Vanguard FTSE Emerging Markets ETF (VWO) is the largest ETF in the category with $72.1 billion AUM
- The average 1-month return in January was -3.16%, average 1-year return is +2.23%
- The BNY Mellon Sustainable Global Emerging Markets ETF (BKES, -7.47%) was the worst performer in January
- The category is relatively diverse in terms of size & style exposure, volatility, and stock/ sector concentration
- Highest average sector exposure is Financials (22.6%) and Technology (20.3%)