ETF Inflows & Outflows
Performance Leaders & Laggards
Source: ETF Action; flows and performance data as of 9/19/24; performance data excludes leveraged and inverse products
Weekly ETF Reads
Active, Crypto & Core ETFs, Oh My by Todd Rosenbluth
“Approximately 150 U.S.-listed ETFs gathered more than $1 billion in the first eight months of 2024.”
These ETFs Can Guard Against Downturns. It’s What They Do Otherwise That Hurts. by Debbie Carlson
“The ETFs are designed to provide a smoother market performance over time, avoiding big swings in either direction, so the underperformance during rallies is a feature, not a bug.”
Virtus and BondBloxx join SSGA in private credit ETF queue by Joe Morris
“The filings reflect intensifying industry competition to develop ‘40 Act products packaging private market access.”
(Note: Catch my in-depth conversation on private credit ETFs with VettaFi’s Cinthia Murphy and industry veteran Dave Nadig on last week’s ETF Prime!)
ETF Truths From Morningstar Gap Survey by Allan Roth
“ETFs are generally a better vehicle than mutual funds with lower fees and greater tax-efficiency. But this doesn’t mean investors can’t misuse ETFs.”
Why Bother With Small-Cap ETFs? by Zachary Evens
“If fewer companies go public with small market caps, it raises the question of what types of companies remain in the small-cap universe.”
ETFs hit the trading floor by Ari Weinberg
“The shift to the floor is part of the evolution of exchange-traded products beyond index funds.”
SEC Approves Stock Quotes in Half-Penny Ticks on Exchanges by Lydia Beyoud and Katherine Doherty
“The changes could apply to about 2,400 securities, including stocks and exchange-traded funds.”
Brian Armstrong, ETF Experts Shoot Down ‘Paper Bitcoin’ Rumors by Helene Braun
“It’s another in the long line of bad takes on ETFs.”
Why Ethereum ETPs (vs. ETFs) are so significant, & more FAQs by Scott Walker
“Investors can weigh the convenience and accessibility of holding ETPs against the benefits of direct ownership.”
BlackRock’s spot ether ETF among fast-growing U.S.-listed ETFs launched this year by Kathie O’Donnell
“Gathering $1 billion in grassroots flows in the first month is an elite start to your life.”
ETF Tweet of the Week
Two years ago, only 3% of bond ETFs posted positive returns over the trailing 12 months. 3%! Of course, that was primarily the result of interest rates rising to the highest level in over 40 years as the Fed attempted to rein-in inflation. With rates starting to come back in, bond ETFs have rebounded and 88% are now in the green over the past year.
TO HELL AND BACK: 88% of bond ETFs now posting positive 12mo returns, up from just 3% two years ago and this is with rate cuts to come. That said, I still think their ability to hedge stock declines is sketchy and investors right to have trust issues, esp re AGG via @psarofagis pic.twitter.com/zQSEPK4R6V
— Eric Balchunas (@EricBalchunas) September 16, 2024
ETF Chart of the Week
It is only September, but fixed income ETF inflows have already set an annual record. Approximately $215 billion has flowed into the category this year as returns have rebounded (see above) and investors attempt to navigate a shifting interest rate environment. Last week, the Fed surprised some market participants by chopping rates 50 basis points – a likely catalyst to further accelerate fixed income ETF inflows.
(Note: I will be moderating an all-star panel on fixed income ETFs as part of NYSE’s ETF Education Series, in partnership with The ETF Institute. The panel features Bondbloxx’s Joanna Gallegos, Janus’ Jim Cielinksi, and Doubleline’s Robert Cohen and we will discuss opportunities in today’s fixed income markets. You can register for this free virtual event here).
Source: Strategas’ Todd Sohn
