ETF Inflows & Outflows
Performance Leaders & Laggards
Source: ETF Action; flows and performance data as of 5/30/24; performance data excludes leveraged and inverse products
Weekly ETF Reads
Move to faster stock settlement creates unique hurdles for ETF market by Suzanne McGee
“A U.S.-listed ETF will be subject to the new ‘T+1’ settlement rules but not all of the constituents of that fund face the same parameters.”
ESG Funds Struggle in Supercharged Political Climate by Jeff Benjamin
“ESG strategies have always been saddled with two investing no-nos: Higher fees and lower performance.”
When You Should Consider Fundamentally Weighted ETFs by Mo’ath Almahasneh
“Fundamentally weighted ETFs target the entire stock market, including growth stocks, but use metrics like operating cash flow, sales, and book value to size their positions instead of market cap.”
Bitcoin ETFs aren’t winning the hearts and minds of financial advisors by Tanaya Macheel
“Bitcoin and its ETFs need more time in the market to gain trust and adoption by big players like Vanguard.”
Ether ETFs Are in a Fee War. Franklin Templeton Made the First Move. by Joe Light
“Potential issuers look like they will be cutting to the bone.”
Fidelity won’t levy proposed fees on purchases from boutique ETF firms, sources say by Suzanne McGee
“One path – refusing to pay them and allowing our investors to be hit with this fee – is death.”
ETF Tweet of the Week
If you want another shining example of the entrepreneurial spirit and passion to deliver positive investor outcomes within the ETF industry, look no further than Newfound’s Corey Hoffstein and the team behind Return Stacked ETFs. The first Return Stacked ETF was launched in February of last year and the entire suite has already eclipsed $400 million in assets. This tweet speaks for itself (click tweet to read in its entirety).
There’s a file on my desktop titled Thank You.docx. I wrote it in 2020.
— Corey Hoffstein 🏴☠️ (@choffstein) May 29, 2024
It was the COVID times, my father had been diagnosed with lymphoma (he’s fine now), and I had received a call that an institutional client was redeeming $750 million.
And this Calvin & Hobbes comic was… https://t.co/pHRBtf57sq pic.twitter.com/dnuV09HUDj
ETF Chart of the Week
It took less than five months for the iShares Bitcoin Trust (IBIT) to overtake the Grayscale Bitcoin Trust (GBTC) as the largest spot bitcoin ETF. When spot bitcoin ETFs debuted on January 11th, GBTC had nearly $29 billion in assets. IBIT, of course, had $0. Now, IBIT is nearing $20 billion and GBTC has approximately $19 billion. As an aside, IBIT is a lock for the fastest ETF to hit the $20 billion threshold – and it won’t even be close. As a matter of fact, there’s only one other ETF to do it in less than 1,000 days – the JPMorgan Equity Premium Income ETF (JEPI). IBIT should achieve this feat in less than 150 days, if that.
Why was IBIT able to track down GBTC so quickly? You can read my comments to MarketWatch here.
Source: Bloomberg’s Katie Greifeld and Sidhartha Shukla
Source: Bloomberg’s Eric Balchunas
