And by that we mean the following slideshow will contain 10 exchange traded funds that have seen their assets under management tallies double (or more) this year.
The law of large numbers might imply that as an ETF grows larger, particularly well into the $500 million in AUM or more area, a double in less than a year becomes a difficult feat to accomplish. Flows data indicate this been a stellar year for ETF growth, indicating more than a few ETFs have had ample opportunity to increase their heft.
U.S.-listed ETFs attracted about $26 billion in assets over October, according to BlackRock. U.S.-listed equity ETFs brought in $30.7 billion while U.S.-listed fixed-income ETFs lost $2.6 billion and U.S.-listed commodity ETFs shrunk $2.5 billion. The U.S. ETF industry attracted $156.4 billion this year ended October. [ETF Asset Flows Reveal Investors’ Love for Stocks]
There are requirements to be on this particular list. Notably, we looked for non-leveraged ETFs that made the jump to at least $100 million in AUM this year. For example, if a fund started 2013 with $50 million in assets and now has $100 million, it would be a candidate for inclusion. A fund that has gone from $5 million to $10 million, impressive on a percentage basis, would not be included here.
Included here with each ETF is its current AUM total, followed by 2013 asset growth and a comment. Let’s get started with the…
PowerShares Buyback Achievers Portfolio (NYSEArca: PKW)
AUM as of Nov. 8: $2.03 billion
2013 growth: $1.62 billion
Comment: There are several interesting superlative regarding PKW, not the least of which is the fact that the ETF has outpaced the S&P 500 by nearly 2,300 basis points over the past three years. Then there is the fact that of all the PowerShares ETFs, an expansive lineup, PKW made the jump to $2 billion from $1 billion faster than any other. PKW is so successful it could soon get an international cousin. [PowerShares Plans Global Answer to PKW]
iShares Core MSCI Emerging Markets ETF (NYSEArca: IEMG)
AUM as of Nov. 7: $2.81 billion
2013 growth: $2.55 billion
Comment: IEMG is part of the cost-efficient iShares core suite of ETFs. Put simply, investors have embraced the concept. IEMG is proof positive of that as the ETF has amassed over $2.8 billion in AUM in just 13 months on the market.
PowerShares Senior Loan Portfolio (NYSEArca: BKLN)
AUM as of Nov. 8: $6.13 billion
2013 growth: $4.65 billion
Comment: Investors have cozied up to senior loan ETFs as yield plays and as a defense against rising interest rates. The result is BKLN is not only the fastest growing PowerShares ETF this year, but over the past year as well. A 4.1% 30-day SEC yield helps.
WisdomTree Europe Hedge Equity Fund (NYSEArca: HEDJ)
AUM as of Nov. 7: $484.4 million
2013 growth: $409.7 million
Comment: The WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ) is the WisdomTree ETF many would guess would be on this list as it is the top asset-gathering ETF of any type this year, but that story has been told. With European stocks on the mend and a surprise European Central Bank interest rate cut, HEDJ and its hedged currency advantage merit near-term consideration. [Europe’s P/E Ratios Can Keep Recovering]
iShares MSCI Frontier 100 ETF (NYSEArca: FM)
AUM as of Nov. 7: $347.5 million
2013 growth: $314.7 million
Comment: FM did not get the memo about 2013 being the year of emerging markets ETFs outflows. Five emerging markets funds, four equity and one bond, are among the 10 worst offenders for 2013 ETF outflows. FM has not only been pulling in assets, it has delivered upside. The fund is up 18.2% year-to-date.
PowerShares DWA SmallCap Momentum Portfolio (NYSEArca: DWAS)
AUM as of Nov. 8: $503.7 million
2013 growth: $467.31 million
Comment: Small-cap stocks are outperforming this year as the economy rebounds. Smaller stocks typically outpace larger companies in the beginning stages of market recoveries. The PowerShares DWAS ETF also utilizes research from Dorsey, Wright Associates to pick out companies with strong relative strength, a momentum driven investment technique that singles out the strongest performers.
SPDR Barclays Short Term High Yield Bond ETF (NSYEArca: SJNK)
AUM as of Nov. 8: $2.7 billion
2013 growth: $2.0 billion
Comment: In an attempt to rein in the negative effects of rising interest rates on bonds, fixed-income investors are moving into shorter duration funds. Consequently, more have shifted into high-yield, speculative grade debt, junk bond SJNK ETF, the short-term version of the SPDR Barclays High Yield Bond ETF (NYSEArca: JNK), which saw $2.6 billion in outflows this year.
SPDR Blackstone/GSO Senior Loan ETF (NYSArca: SRLN)
AUM as of Nov. 8: $554.6 million
2013 growth: $479 million
Comment: SRLN, an actively managed senior floating rate bank loan ETF, has attracted about $479 million in assets since it began trading in April. The SPDR Senior Loan ETF provides investors with another high-yield bond option, with a floating rate component that helps mitigate the negative effects of rising rates.
db X-trackers MSCI Japan Hedged Equity Fund (NYSEArca: DBJP)
AUM as of Nov. 8: $192.2 million
2013 growth: $182.4 million
Comment: Like WisdomTree’s DXJ, Deutsche Bank’s Japanese currency hedged-equity ETF tracks a basket of Japanese equities but hedges against a depreciating yen. However, unlike DXJ, DBJP takes greater exposure to companies that profit from an expanding domestic economy.
Guggenheim Solar ETF (NSYEArca: TAN)
AUM as of Nov. 8: $394.4 million
2013 growth: $228.5 million
Comment: TAN is the best performing ETF year-to-date, with a 146% return. The Guggenheim ETF tracks a group of large photovoltaic solar panel manufacturers, such as First Solar (NasdaqGS: FSLR).