ETF Watch: Smart Beta Launches Accelerate

Back in April, we reported that smart-beta ETF launches had slowed from the prior year. In the first quarter of 2016, nearly 70% of all ETF launches fell under the smart-beta umbrella. In the first quarter of 2017, that number had fallen to just 26% of launches.

At the time, it looked as if the smart-beta bandwagon had lost a wheel.

However, with the close of the second quarter, smart-beta launches are up again. Right now, 53% of the 108 ETFs that have launched in 2017 are smart-beta funds. That’s actually a greater percentage than for 2016, when 50% of all ETF launches were smart-beta.

Major Acceleration

Much of that has to do with a major acceleration in smart-beta launches in June. A total of 25 ETFs rolled out during the month, and 19 of them are smart-beta funds. In other words, 76% of the ETFs to launch in June 2017 were smart-beta funds.

That’s quite a rebound for the category.

Contact Heather Bell at [email protected].