Solactive Four Solactive Indices featured in the Top-Ten ETF launches in the US this year
Timo Pfeiffer, Chief Markets Officer at Solactive
The US remains the center of global ETF inceptions, especially in the equity space. Among all passive ETFs launched on US stock exchanges year-to-date, 4 out of the 10 largest ETFs (measured by AuM inflows) are tracking Solactive indices; two Solactive indices even range in the top-five.
Recently cracking the USD 100m mark in AuM, the first ETF on the list tracking a Solactive index is the Direxion Work From Home ETF (WFH). The COVID crisis is still forcing millions of employees to work from home, corroborating an already enduring trend of remote working. While this unique situation creates new challenges for employers and employees alike, it also brings new opportunities for employees’ work-life balance and new business for companies offering key technological infrastructure and services that help enable working remotely. To allow investors to benefit from this major shift in society, Solactive developed its Solactive Remote Work Index, utilized by Direxion for WFH.
The next ETF gathered more than USD 326m in merely five weeks: The Global X Telemedicine & Digital Health ETF. Some economic sectors initially considered to be solely ‘offline’ are increasingly embracing the interweaving of digital infrastructure with society’s everyday life. The healthcare sector is a prime example of this trend, as a historically localized and analog industry, which progressively adopts digital solutions to improve health outcomes and reduce costs. Solactive’s Telemedicine & Digital Health Index, which is underlying the Global X Telemedicine & Digital Health ETF (EDOC), includes companies both providing or affiliated with digital medical services and digital healthcare.
To select EDOC’s index components, Solactive utilized its proprietary Natural Language Processing algorithm, ARTIS®, which parses large volumes of public documents, evaluating companies’ relevancy, exposure, and importance to the underlying theme.
The two final ETFs found among the ten largest newly incepted US-based ETFs year to date are the Goldman Sachs MarketBeta U.S. Equity ETF and the Goldman Sachs MarketBeta International Equity ETF. The two ETFs offer investors exposure to the Large & Mid Cap segment of the United States and Developed Markets (excluding North American securities), respectively. Both ETFs track indices from Solactive’s Global Benchmark Series and collected more than USD 500m in assets in less than four months.
“As the popularity of ETFs increases around the globe, the epicenter of all ETF inceptions is still the US,” comments Timo Pfeiffer, Chief Markets Officer at Solactive. “Besides a substantial number of newly launched products, notably in the thematic, access, and core ETF space, the world’s largest market saw a massive surge in assets since the drops seen in March. We are very pleased to be part of this expanding ETF ecosystem, helping to push innovation, particularly in the thematic space.”
As of September 14th, the four aforementioned ETFs gathered nearly USD one billion in assets combined.
|ETF Name||AuM (in USD)||Underlying Index|
|iShares 0-3 Month Treasury Bond ETF||835,125,240||ICE 0-3 Month US Treasury Securities Index|
|iShares ESG MSCI EM Leaders ETF||647,000,000||MSCI EM Extended ESG Leaders 5% Issuer Capped Index|
|iShares U.S. Tech Breakthrough Multisector ETF||351,448,000||NYSE FactSet U.S. Tech Breakthrough Index|
|Global X Telemedicine & Digital Health ETF||326,711,600||Solactive Telemedicine & Digital Health Index- TR Net|
|Goldman Sachs MarketBeta International Equity ETF||281,274,000||Solactive GBS Developed Markets ex North America Large & Mid Cap Index|
|Goldman Sachs MarketBeta U.S. Equity ETF||248,805,850||Solactive GBS United States Large & Mid Cap Index NTR|
|Xtrackers MSCI Kokusai Equity ETF||127,800,064||MSCI Kokusai Index (World ex Japan)|
|Direxion Work From Home ETF||108,855,050||Solactive Remote Work Index|
|Roundhill Sports Betting & iGaming ETF||103,989,000||Roundhill Sports Betting & iGaming Index|
|BNY Mellon US Large Cap Core Equity ETF||80,816,605||Morningstar U.S. Large Cap Index|
Source : ETFWorld.co.uk