The ETF Think Tank is a community of advisors sponsoring growth through the use of ETFs. Each week we disseminate research on the growth of the ETF industry including key performance indicators (KPIs) on number of ETFs listed, assets, revenue, exchange market share and number of issuers. In this special edition produced for ETF.com, we cover the state of the ETF industry in 2019 by reviewing how these KPIs have changed through June 30, 2019.
New Listings Grow Faster Than Closings
There are currently 2,282 ETFs listed in the U.S. Over the last 12 months, we have seen 264 new ETFs launch compared with 169 ETFs that closed, for a 1.51 open-to-close ratio.
However, the ratio is showing improvement. We have witnessed the ratio improving to 1.75 for the first six months of 2019, or 1.75 new ETFs for each closed ETF. This KPI shows an increasing appetite for issuers to continue to launch new and creative ETF ideas.
|Last 12 Months||Last 6 Months|
Assets Grow While Influence Diversifies
As of June 30, 2019, U.S. ETF assets were $3.98 trillion, an all-time high. That’s an increase of about 18% year to date. Another KPI of significance is the “ownership influence score.”
Our average ETF ownership influence has dropped this year, from 8.25% at the beginning of 2019 to 6.90%, due to a more diversified offering and a concentration of ETF flows toward large cap U.S. equities. The ownership influence score is the average amount of the market cap of every U.S. stock owned by ETFs.
For example, below we show how our Ownership Influence Tool in the ETF Think Tank App calculates that 5.6% of Apple (“AAPL”) is owned by ETFs versus an average of 6.9% for most U.S. stocks, helping investors to see that ETFs are “under-influencing” the movements of this particular stock.
Or, maybe better said, stocks behave more closely to their own fundamentals, and not ETF influence.
For a larger view, please click on the image above.
[Use ETF.com’s stock finder tool to find an ETF’s allocation to a certain stock.]