“By including the liquidity providers and exchanges we have seen great downside performance,” said Venuto. “Companies like Virtu and Flow Traders preformed spectacularly when volatility spiked. The one year up capture versus the ACWI 145 and downside capture was -25%, meaning TETF actually went up when the ACWI went down.”
Against this record-setting asset gathering pace, TETF.Index was up 36.0% from inception through April 30, 2018. This compared to a return of 14.4% for the S&P 500 Index over that same time frame, while the Financial Select Sector Index returned 17.6% over that period. For purposes of clarity, the Financial Select Sector Index seeks to provide an effective representation of the financial sector of the S&P 500 Index.
“Over the last year we have found many of the issuers have had performance that has a high correlation to asset flows. Having Burton Malkiel join the index committee added a fresh perspective rooted in the nexus of passive investing,” said Venuto.
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With the first year of TETF.Index and TETF live performance over, TEFT is eager to continue to tell the story of the ETF industry and to encourage the message that the industry itself is worth a closer look as an investment, said Venuto.