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:
- FlexShares iBoxx 3-Year Target Duration TIPS (TDTT | B-48)
- PowerShares Fundamental High Yield Corporate Bond (PHB | C-78)
- FlexShares iBoxx 5-Year Target Duration TIPS (TDTF | B-84)
- Vident Core U.S. Bond Strategy ETF (VBND | C)
- Global X SuperIncome Preferred ETF (SPFF | C)
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% |
