Week of October 3, 2022 KPI summary

This week, the industry saw 9 ETF launches and 8 closures, shifting the 1-year Open-to-Close ratio to 3.24 and total US ETFs to 3,034.

As the 3rd Quarter of 2022 has wrapped up, let’s take a look at some KPIs that stand out (comparing July 3, 2022 to October 2, 2022).

> Total assets dropped -4.48%; there was a net increase of 65 ETFs during the quarter, bringing the US ETF count to 3,033, which is +230 YTD; and there were 0 additional issuers by brand.

> From our 11 asset class categories, Managed Futures increased the most (88.90%) with Currency in second (21.31%). Commodities Derivative had the worst performance (-18.53%) with Commodities Physical next (-15.00%). The two largest asset classes of Equity (75.32% of assets) and Fixed Income (19.79%) dropped -5.30% and inched up 0.02% respectively.

> ETF expense ratio 12-month revenue dipped from $10.76 Billion to $10.06 Billion.

> The revenue from Active ETFs increased from 11.68% to 12.30%.

Although a decline in total ETF assets of 4.48% is better than Q2’s -12.0% mark, it leaves the ETF industry at 18-month lows in assets, with revenues barely above the $10 Billion mark.

There was nearly the same increase in total ETFs as Q2 (+65 compared vs. +68 the previous quarter), however, the open-to-close ratio dropped to 3.42 (from 4.44) with significantly more closures seen this quarter: 52 in Q3 vs. 51 in Q1 + Q2 combined.  

The tracked indexes had similar experiences in Q3 2022. The Toroso ETF Industry Index was down -4.11% while the S&P Financial Select Sector Index led at -3.10%.