Although August was a roller coaster ride for investors, ETFs/ETPs listed globally gathered US$20.8 billion in net new assets, marking their 19th consecutive month of positive net inflows, according to ETFGI’s preliminary ETF and ETP global insights report for August 2015….
Deborah Fuhr, Managing Partner at ETFGI
Nineteen new ETF/ETP providers have entered the ETF industry in the United States during the first 9 months of 2015, beating the prior full year records of 15 new providers entering the ETF industry in both 2014 and 2009, according to new analysis from ETFGI.
Collectively the 19 new providers have launched a total of 37 products, accounting for $1.1 billion in assets as of the Sept 29th. The majority, or 21, of these new launches follow Smart Beta strategies, followed by Active with seven. The record number of new providers entering the ETF industry in the US industry demonstrates the trend we previously identified that most asset managers feel they need to have a presence in the ETF industry.
Some notable new entrants are Goldman Sachs Asset Management, John Hancock who has partnered with Dimensional Fund Advisors, Principal Funds and O’Shares by Kevin O’Leary, known for his role on the television show, “Shark Tank.”
Pacer ETFs ranks first for gathering the largest amount of new assets in their three new Trend Pilot ETFs $421.3 million as of Sept 29th, followed by Newfleet Asset Management’s new liquid-alternative unconstrained bond ETF with $129.7 million. Tuttle Tactical Management ranks third with $111.4 million in two ETFs, while Goldman Sachs Asset Management is 4th with $77.6 million in the two recently launched ActiveBeta ETFs, another term for Smart Beta, and Lattice ranks 5th with $75.5 million in their 4 smart beta ETFs.
Looking at the specific products that have been launched by the 19 new providers in 2015, the Pacer Trend pilot 750 ETF has gathered the largest assets with $259.4 million, followed by the Newfleet Multi-Sector Unconstrained Bond ETF with $129.7 million, the Pacer Trend pilot 450 ETF with $106.8 million and the Tuttle Tactical Management US Core ETF with $66.3 million.
Looking at regulatory filings with the SEC, we can see that many asset managers are considering launching ETFs. A significant number of potential new providers have filed to launch ‘non-transparent’ active ETFs and are waiting to see if the SEC will approve the new structure. The proposed structure would provide transparency at the same frequency of traditional mutual funds while the current structure means that the holdings of active ETFs are fully transparent.