As exchange traded fund providers continue to take the financial industry by storm, investors want to see the growth and learn how to participate.
On the upcoming webcast, How to Capture Insights to the Growth of the ETF Industry, Michael Venuto, Chief Investment Officer of Toroso Asset Management, will examine the ETF ecosystem and highlight those fund sponsors, index providers, data companies, trading platforms, and liquidity providers.
It is no big secret that the ETF industry itself is growing as investor interest increases for the cheap, cost-efficient and accessible ETF investment vehicle. As the ETF’s continue to attract huge inflows, the fund providers and financial companies that have launched these ETFs have also reaped the rewards.
Investors can also gain broad exposure to those fund sponsors that have benefited from the huge growth in ETFs through the recently launched ETF Industry Exposure & Financial Services ETF (NYSEArca: TETF).
TETF tries to reflect the performance of the Toroso ETF Industry Index, which tracks publicly-traded companies that directly or indirectly provide services or support to ETFs, including management, servicing, trading or sales of ETFs. Specifically, these companies include ETF sponsors; asset managers; index providers; broker-dealers; securities exchanges; and service providers, such as custodians, transfer agents, and administrators.
Companies eligible for inclusion on the index are broken down to four tiers. Tier A are comprised of those whose participation in ETF activities is substantial and results in direct financial impact to company shareholders, including investment advisors to and sponsors of ETFs. This tier makes up 50% of the index weight, including BlackRock, Charles Schwab, Invesco, State Street, WisdomTree, and more.
Tier B includes those with substantial participation in ETF activities and indirect financial impact to company’s shareholders. This tier makes up 25% of the index weight, including KCG Holdings, NASDAQ, Intercontinental Exchange, Inc., and more.
Tier C includes those whose participation in ETF activities is moderate and results in indirect financial impact to shareholders, which include companies that generally provide support services to participants in the ETF industry. This tier makes up 15% of the index weight, including Bank of New York Mellon, US Bancorp, FactSet, Ameriprise Financial, and more.
Lastly, Tier D includes companies that recently began to participate or have minor participation in ETF activities. This segment makes up 10% of the index weight and includes such names as Morningstar, Eaton Vance, Goldman Sachs, Legg Mason, Citigroup, and more.
Financial advisors who are interested in learning more about the growing ETF industry can register for the Tuesday, July 18 webcast here.