Who's Really Using Smart Beta Funds

April 04, 2016

Extreme Concentration

Smart-beta bond ETFs remain a much smaller space than their equities counterparts; as of November 2015, only 31 funds had launched, amassing just $4.5 billion in assets total.

Some smart-beta bond ETFs, however, have managed to take off. The five largest include:

TDTT = $1.82 Bn in AUM

Name % Ownership
Northern Trust Investments, Inc. 82.0
ValMark Advisers, Inc. 12.9
TD Ameritrade Trust Co. 0.9
Hills Bank & Trust Co. (Investment Management) 0.8
Nicolet Bankshares, Inc. (Private Banking) 0.3
FirstMerit Bank, NA (Investment Management) 0.2
Merrill Lynch, Pierce, Fenner & Smith, Inc. 0.1
Envestnet Asset Management, Inc. 0.1
Comerica Bank (Investment Management) 0.1
VSR Financial Services, Inc. 0.1
Total number of filers 52
Total percent ownership 98.70%

PHB = $688 Mn in AUM

Name % Ownership
Wells Fargo Advisors LLC 12.3
Invesco Canada Ltd. 9.6
Lazard Asset Management LLC 4.3
Morningstar Investment Services, Inc. 2.8
UBS Asset Management (Americas) Inc. 2.8
LPL Financial LLC 2.7
SunTrust Banks, Inc. (Wealth Management) 2.4
Envestnet Asset Management, Inc. 2.1
Aft, Forsyth & Sober LLC 1.9
UBS Financial Services, Inc. 1.8
Total number of filers 124
Total percent ownership 62.80%

TDTF= $472 Mn in AUM

Name % Ownership
Northern Trust Investments, Inc. 45.5
Charles Schwab Investment Advisory, Inc. 40.6
Lourd Capital LLC 7
Evensky & Katz LLC 3.4
Merrill Lynch, Pierce, Fenner & Smith, Inc. 0.6
Sanders Morris Harris LLC (Investment Adviser) 0.5
LPL Financial LLC 0.4
Wells Fargo Advisors LLC 0.4
RBC Dominion Securities, Inc. 0.3
Morgan Stanley Smith Barney LLC 0.1
Total number of filers 27
Total percent ownership 98.90%

VBND = $406 Mn in AUM

Name % Ownership
Ronald Blue & Co. LLC 95.9
KCG Americas LLC 0.8
Litman Gregory Asset Management LLC 0.5
Susquehanna Financial Group LLLP 0.4
Jane Street Capital LLC 0.3
RBC Dominion Securities, Inc. 0.3
Tower Research Capital LLC 0
Total number of filers 7
Total percent ownership 98.30%

SPFF = $195 Mn in AUM

Name % Ownership
Aviance Capital Management LLC 16.2
Janney Capital Management LLC 3.7
Gradient Investments LLC 2
LPL Financial LLC 1.6
Morgan Stanley Smith Barney LLC 1.4
Envestnet Asset Management, Inc. 1.1
RJL Capital Management LLC 1
Janney Montgomery Scott LLC (Investment Management) 0.6
Partnervest Advisory Services LLC 0.6
EQIS Capital Management, Inc. 0.5
Total number of filers 48
Total percent ownership 31.70%

Find your next ETF

Reset All