The popularity of ETF investing has been going through the roof and it took about 20 years to reach this height. 2019 emerged to be another winning year for ETF inflows. Assets held by US listed ETFs have surged to over $4.4 trillion. Though the pace of rollout slackened a bit in 2019 as we saw about 246 launches compared with approximately 270 seen each in 2018 and 2017, the demand has been pretty strong. And certain slack in slowdown is understandable given the maturity of the industry.
The last few years have been particularly eventful compared with about 240 ETF launches in 2016, 300 rollouts in 2015,180 ETF initiations in 2014, 150 in 2013 and 170 rollouts in 2012. All these have taken the tally to 2,350 ETFs so far. Not only this, a considerable number of ETFs are in the pipeline, pointing to growing investor interest in exchange-traded products (read: Too Many ETFs Flying in the Market?).
The credit goes mainly to a wide range of innovative and fresh-themed products in the space that suit changing macroeconomic dynamics and which hold investors’ attention despite the peaks and troughs of the market.
Below are seven ETFs launched in 2018 that have amassed a decent asset base.
iShares ESG MSCI USA Leaders ETF SUSL
Since its inception in May, the fund has amassed about $1.94 billion in assets. The underlying MSCI USA Extended ESG Leaders Index comprises of U.S. large and mid-capitalization stocks of companies with high environmental, social, and governance performance relative to their sector peers. The 312-stock fund charges 10 bps in fees. Technology is the top sector in the fund with about 23.5$ weight.
Xtrackers MSCI USA ESG Leaders Equity ETF USSG
Having entered the market in March, the fund has hoarded about $1.84 billion in assets. The underlying index of the fund looks to provides exposure to companies with high Environmental, Social and Governance performance relative to their sector peers. The fund charges 10 bps in fees (read: Top ETF Stories of 2019 & Picks for 2020).
Franklin Liberty U.S. Core Bond ETF FLCB
The fund entered the market in mid-September and has piled up about $923.9 million in assets within more than three months. The fund is active in nature and charges 15 bps in net fees. The fund is used as a core building block for broad exposure to U.S. investment grade bonds. The fund charges 15 bps in fees (read: 6 Most Successful ETF Launches YTD).
Global X Cloud Computing ETF CLOU
The fund forayed into the ETF universe in April and has grossed about $448.3 million in assets in eight months. The underlying Indxx Global Cloud Computing Index provides exposure to exchange-listed companies in developed and emerging markets that are positioned to benefit from the increased adoption of cloud computing technology. The fund charges 68 bps in fees (read: 5 ETFs Under $20 Up for Gains in 2020).
Aware Ultra-Short Duration Enhanced Income ETF AWTM
The fund entered the market in January and has piled up about $352.1 million in assets so far. The fund is active in nature and charges 23 bps in fees. The fund yields 2.40% annually.
Virtus Real Asset Income ETF VRAI
Launched in February, the fund has accumulated about $260.9 million in assets so far. The underlying Indxx Real Asset Income Index comprises of income-producing, U.S. equity securities across three real asset categories: real estate, natural resources, and infrastructure. The fund charges 55 bps in fees and yields 2.79% annually.
Virtus Private Credit Strategy ETF (ASX:VPC)
The fund hit the market in February and has amassed about $223.9 million in assets so far. The underlying Indxx Private Credit Index seeks to track the performance of U.S.-listed, registered closed-end investment companies that have elected to be regulated as BDCs as well as U.S.-listed, non-BDC registered closed-end funds that provide significant exposure to private credit. The fund charges 7.64% annually while it yields 8.14%.
Defiance Next Gen Connectivity ETF FIVG
The fund hit the market in May and has grossed about $162.4 million in assets so far. The underlying BlueStar 5G Communications Index is a rules based index that tracks the performance of a group of US-listed stocks, of global companies that are involved in the development of, or are otherwise instrumental in the rollout of 5G networks. It charges 30 bps in fees (read: Bet Big on These ETFs on Verizon-Amazon Deal).
Avantis U.S. Equity ETF AVUS
Having entered the market in September, the fund has managed to gross about $168.6 million in assets. The 2019-securities fund is active in nature. It charges 15 bps in fees.
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iShares ESG MSCI USA Leaders ETF (SUSL): ETF Research Reports
Defiance Next Gen Connectivity ETF (FIVG): ETF Research Reports
Global X Cloud Computing ETF (CLOU): ETF Research Reports
Franklin Liberty U.S. Core Bond ETF (FLCB): ETF Research Reports
Xtrackers MSCI USA ESG Leaders Equity ETF (USSG): ETF Research Reports
Avantis U.S. Equity ETF (AVUS): ETF Research Reports
Virtus Real Asset Income ETF (VRAI): ETF Research Reports
Aware Ultra-Short Duration Enhanced Income ETF (AWTM): ETF Research Reports
Virtus Private Credit Strategy ETF (VPC): ETF Research Reports
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Zacks Investment Research