Since their introduction in the United States in 1993, ETFs have achieved sizable growth. Designed to offer diversification, flexibility, and tax efficiency, exchange-traded funds have easily attracted and appealed to all types of investors.

Last year, Toroso Investments launched the Toroso ETF Industry Index (TETF), “the ETF of the ETF industry.”

“For the last 10 years, ETFs have been growing about 20 percent a year… we wanted to make that our benchmark,” explains Mike Venuto, CIO of Toroso Asset Management. “We designed [TETF] to track the growth of the industry.”

TETF looks for companies that “[derive]  revenue from operations directly from or related to the ETF Industry,” with minimum company size requirements of $200 million or greater. Since its launch in April 2017, TETF is up 35 percent, with top holdings including Intercontinental Exchange, S&P Global, MSCI, Invesco, and Charles Schwab.

For more on the Toroso ETF Industry Index, watch the full clip below:

Toroso Asset Management is a participant in the ETF Strategist Channel.