The yr 2020 was difficult, however a mix of fiscal and financial stimulus resulted in a robust inve
The yr 2020 was difficult, however a mix of fiscal and financial stimulus resulted in a robust inventory market efficiency that didn’t absolutely replicate the ache felt in lots of sectors. It was a very good yr for the ETF trade, with combination property for US listed ETFs rising by 23% to $5.47T.
There have been 313 new ETFs listed in 2020 within the US. As we noticed on the mid-year level in 2020, three sorts of ETFs dominated the brand new listings:
1. Outlined final result ETFs
The outlined final result ETF was a highly regarded construction in 2020. These ETFs use choices to supply draw back safety to buyers, in change for the return upside being capped. These merchandise differ by the share of draw back safety, upside cap and the month by which the return calculation is ‘reset’. There have been 56 outlined final result ETFs launched in 2020 within the US.
Chart 1: Outlined Consequence ETFs launched within the US in 2020 by sponsor
| ETF Sponsor | Variety of ETFs |
|---|---|
| Innovator Administration | 22 |
| First Belief | 17 |
| AllianzIM | 6 |
| TrueShares | 6 |
| Pacer Monetary | 4 |
| Swan | 1 |
| Complete | 56 |
ETF Information supply: CFRA’s First Bridge ETF database
2. Energetic Semi-transparent ETFs
There have been 19 energetic semi-transparent ETFs launched in 2020. These ETFs should not obligated to reveal their holdings day by day. This was an vital growth within the US ETF trade since beforehand ETFs had been required to reveal their ETF constituent holdings day by day, for each listed and energetic ETFs.
It’s attention-grabbing to notice that six completely different energetic semi-transparent (AST) ETF buildings had been used within the US. The chart beneath exhibits which buildings had been used the issuers who listed new AST ETFs.
Chart 2: Energetic Semi-Clear ETF launches in 2020 by Authorized Construction
3. Thematic ETFs
There have been 53 Thematic ETFs launched in 2020, a really vital quantity that underscores how investing has shifted in the direction of theme and strategy-based publicity. Not surprisingly, ESG ETFs accounted for simply over half of these launches. ESG was the most popular space of ETF investing each when it comes to product launches and asset progress in 2020. A big variety of launches had been linked to modifications in way of life, a direct results of how the pandemic impacted our life and work habits.
Chart 3: Thematic ETF launches in 2020 by Kind of Theme
The launches in 2020 underscores how the ETF house has advanced lately, and we are able to anticipate to see continued ETF exercise on this new yr as nicely.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.