Some ETFs Punching Above Their Weight
After SPY, the iShares MSCI Emerging Markets ETF (EEM) has the most deep and liquid options market. The fund boasts total open interest of 6.6 million contracts, just a hair above No. 3 on the list, the PowerShares QQQ Trust (QQQ), with open interest of 6.5 million contracts.
Then there's also a number of ETFs on the list that are punching well above their weight. Those include the iPath S&P 500 VIX Short-Term Futures ETN (VXX), the United States Oil Fund (USO), the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), the iShares MSCI Brazil Capped ETF (EWZ), the VanEck Vectors Gold Miners ETF (GDX) and the iShares China Large-Cap ETF (FXI).
These ETFs have some of the most liquid options markets, even though they don't have a tremendous amount of assets. VXX, for example, only has AUM of $1 billion, while XOP has $2 billion in assets. That suggests these funds are popular with short-term traders—not a surprise considering that the VIX, oil, Brazil, gold miners and China are among the most volatile areas of the markets.
For a full list of the top 15 ETFs with the most liquid options, see the table below:
|SPY||SPDR S&P 500 ETF Trust||17,771,528|
|EEM||iShares MSCI Emerging Markets ETF||6,635,087|
|QQQ||PowerShares QQQ Trust||6,488,055|
|IWM||iShares Russell 2000 ETF||4,529,522|
|XLF||Financial Select Sector SPDR Fund||3,886,407|
|VXX||iPath S&P 500 VIX Short-Term Futures ETN||3,484,288|
|USO||United States Oil Fund LP||3,502,854|
|GLD||SPDR Gold Trust||2,942,741|
|EFA||iShares MSCI EAFE ETF||2,541,963|
|XOP||SPDR S&P Oil & Gas Exploration & Production ETF||2,385,889|
|EWZ||iShares MSCI Brazil Capped ETF||2,198,495|
|GDX||VanEck Vectors Gold Miners ETF||2,162,377|
|HYG||iShares iBoxx $ High Yield Corporate Bond ETF||1,660,590|
|FXI||iShares China Large-Cap ETF||2,071,668|
|SLV||iShares Silver Trust||1,680,438|
Source: Bloomberg. Data as of Monday, June 19
Contact Sumit Roy at [email protected].