ETF Inflows & Outflows
Performance Leaders & Laggards
Source: ETF Action; flows and performance data as of 7/4/24; performance data excludes leveraged and inverse products
Weekly ETF Reads
Boom in active bond ETFs could put total inflows on track for $1tn year by Will Schmitt
“Actively managed fixed-income ETFs took in $7bn in June and have garnered $41bn over the first half of 2024, surpassing 2023’s record of $33bn for the entire year.”
Retail Financial Advisors—and Their Model Portfolios—Propel ETF Assets by Cerulli Associates
“Overall, firm resources including model portfolios and external sponsor models all have the potential to influence advisors and further spur ETF adoption.”
Invesco Built a Custom ETF for an Insurer — And More Like It Are Coming by Michael Thrasher
“The ETF wrapper itself has to add something, and in this case it absolutely did.”
BlackRock Sees Upside to Downside Protection by Jeff Benjamin
“ETFs offering levels of buffered protection have grown to over $100 billion, up from $5 billion just five years ago.”
Covered call ETF demand still surging despite bull market, rising bond yields by Gregg Greenberg
“Over the last 1 and 3 years from an opportunity cost perspective you’ve been killed relative to just holding the index outright.”
Stone Ridge aims at retirement market with ‘longevity income’ ETFs by Joe Morris and Daniel Gil
“The 32 Longevity Income ETFs set target dates from 2048 to 2063, according to the year when intended investors turn 100, and are structured to generate regular income starting 20 years before then.”
Bitcoin ETFs have fundamentally changed the crypto trading landscape – Kaiko by Jordan Finneseth
“ETF trading can contribute to increased spot bitcoin liquidity throughout the ETF trading day as liquidity providers and market makers for the ETF trade and hedge in the spot market.”
Ether ETF Hopefuls Gear Up for Approval as Soon as Mid-July by Emily Graffeo and Olga Kharif
“This is window-dressing, the SEC is engaged.”
ETF Tweet of the Week
Much has been made regarding what ETF issuers can and can’t say about their products, especially out on social media. I’ll submit the below tweet as “Exhibit A” on how issuers should attempt to educate investors on their ETFs. It’s an absolute masterclass (click tweet to read entire thread), and one I think many of my industry friends will appreciate.
Remember, a little ETF education goes a long way.
The Alpha Architect Tail Risk ETF, ticker $CAOS, seeks to provide tail-hedging exposure while aiming to deliver net positive total return over the long term.
— Wes Gray 🇺🇸 (@alphaarchitect) July 1, 2024
But how does the fund actually do this?
🧵👇🏽 (1/11)
To learn more head to https://t.co/nCjxkfkVgK
ETF Chart of the Week
The rise of actively managed ETFs has been well-documented, including by yours truly. That said, it’s difficult to overstate the accelerating momentum in this corner of the industry right now. Outsized inflows, a firehose of new launches, the largest names and portfolio managers in active management… it’s all happening in ETFs. Strategas Todd Sohn:
“Active ETFs come in all shapes now – such as alpha capture stock selection, synthetic income, derivative overlays, and duration management – with the depth of products boosting 1H flows to a record half over +$120 Bn.”
(Note that VettaFi’s Cinthia Murphy and I will go in-depth on this topic on next week’s ETF Prime.)
Source: Strategas’ Todd Sohn
