WHERE LIQUIDITY PROVIDERS BENEFIT?
These 809 ETFs turned over $289 billion dollars, which is 14.54% of their total AUM. The biggest difference between assets and assets turnover (on a percentage basis) is within the active space.Domestically focused active equity ETFs (66 total) had an annual turnover of 103%, for $7 billion dollars. These funds represent just 0.35% of the universe, but are responsible for 2.46% of the dollars turned over through ETF rebalancing. The most impactful difference is within the Smart Beta space. Smart Beta ETFs turned over almost 30% of their assets for a total of $185.5 Billion dollars.They represent 33% of this universe, and 64% of the dollars turned over through ETF rebalancing at $186 billion annually.
So what does this mean? When you examine the ETF Industry, you need to look beyond the issuers themselves. In this analysis you can readily see that market volatility, and the corresponding trading activity, creates significant opportunity for the liquidity providers to benefit.It is our goal to see that the TETF.Index captures that opportunity and fairly represents it in the overall growth of the ETF Industry.
TETF.Index reflects that opportunity through the overall growth of the ETF Industry.
This article was written by Toroso Asset Management, a participant in the ETF Strategist Channel.
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