ETF Inflows & Outflows
Performance Leaders & Laggards
Source: ETF Action; flows and performance data as of 9/5/24; performance data excludes leveraged and inverse products
Weekly ETF Reads
Can ETFs Capture Private Equity Markets? by Kirsten Chang
“The ETF industry has shown an incredible capacity for innovation for virtually every type of product imaginable.”
Sizzling ETF Flows in Manic Markets Fuel a $609 Billion Haul by Vildana Hajric
“ETFs as a whole have already exceeded the tally for each of the past two years.”
Active ETFs set to hit $1tn in assets by Steve Johnson
“Active ETF assets have mushroomed at a compound annual growth rate of 48 per cent.”
Tradr Debuts Leveraged ETFs for Longer-Term Investors by Jeff Benjamin
“We’re targeting active traders and fiduciaries who are not allowed to use daily ETFs because of the daily reset.”
An ETF Designed to Avoid Taxable Distributions Just Paid One. What Happened? by Amey Stone
“There is still some question about whether the fund might run afoul of the anticonversion statute that says funds that produce interest-equivalent income need to pay tax as it accumulates.”
Star manager Rob Arnott launches ETF to buy up index ‘rejects’ by Will Schmitt
“A deletion is far from a disaster — it is an opportunity.”
Cryptoverse: Bitcoin ETFs take $50 billion baby steps toward big time by Suzanne McGee
“Clearly, I wasn’t being bullish enough. This is going to be an area that we measure in hundreds of billions of dollars.”
In case you missed it, check out my special contribution to etf.com: Crypto, Flows, Rules: What’s Left for ETFs This Year?
ETF Tweet of the Week
There is *always* something new happening in the ETF space and last week didn’t disappoint. The FBI issued a public service announcement which included the following:
“North Korean malicious cyber actors conducted research on a variety of targets connected to cryptocurrency exchange-traded funds (ETFs) over the last several months. This research included pre-operational preparations suggesting North Korean actors may attempt malicious cyber activities against companies associated with cryptocurrency ETFs or other cryptocurrency-related financial products.”
This is definitely the first time I have ever seen ETFs referenced in an FBI PSA. Eleanor Terrett of Fox Business highlighted the fact that the vast majority of the nearly $60 billion of bitcoin and ether held by ETFs is custodied at Coinbase. That makes the firm – and any individuals who have the ability to access some of this crypto – an attractive target for hackers. Blockworks does a nice job of providing some additional context on this story here.
It doesn’t bode well that nearly all crypto ETF issuers have the same custodian for all their $BTC and $ETH. This makes @coinbase a potential single point of failure and that’s scary. https://t.co/47RNMQ5dQN
— Eleanor Terrett (@EleanorTerrett) September 4, 2024
ETF Chart of the Week
$73 billion flowed into ETFs in August, following $127 billion of inflows in July. The industry has now vacuumed-up $610 billion in 2024. State Street’s Matt Bartolini notes this is a record haul for the first eight months of *any* year and projects annual inflows could hit $950 billion – surpassing 2021’s high-water mark. If that happens, total ETF assets would also likely eclipse $10 trillion. ETFs hit $5 trillion in November of 2020, so the industry has nearly doubled in less than four years!
Source: State Street’s Matt Bartolini
CNBC ETF Edge
I had the pleasure of joining Bob Pisani and State Street’s Matt Bartolini on CNBC’s ETF Edge to discuss everything from those record ETF flows to Nvidia to bond ETFs. Enjoy!
