ETF Action’s Post

One of the questions I am increasingly asked about the ETF market - by all kinds of investors is – “What are active ETFs?” It's an excellent question, and there is more than one clear answer. - Active ETFs are investment funds managed by professional portfolio managers who actively select and adjust the fund’s holdings in an effort to outperform the market, deliver a specific outcome, or gain exposure to hard-to-index markets. And they do all that through the convenience of the ETF wrapper. - There is a spectrum of active ETFs. In fact, our clients have told us navigating the active ETF universe can be difficult because it is so broad. We see three distinct categories within active ETFs that help describe each category’s use case: alpha-seeking, outcomes, and exposures. We believe active ETFs are the next frontier in investor innovation, helping to shape the future of markets, and giving investors the potential to unlock more value and opportunities. BlackRock projects that global active ETF AUM will more than quadruple to $4 trillion by 2030, from $900 billion as of June 2024.* To learn more about the characteristics and growth of active ETFs – read our latest insight here: https://ishars.com/3W3YRtf *Source: BlackRock Global Business Intelligence. Data as of June 30, 2024. Forward-looking estimates may not come to pass.

Exchange-Traded Fund (ETF) An Exchange-Traded Fund, commonly referred to as ETF, is quite analogous to a mutual fund. The primary difference lies in how these funds are bought and sold. ETFs are financial products that track an index, sector, commodity, or an array of assets like an index fund. They trade on a stock exchange, and investors can buy and sell shares just like they would shares of an individual company. ETFs typically aim to replicate the performance of a specific index, offering a way for investors to gain exposure to a wide range of companies without having to buy shares in each one individually. An interesting real-world example can be found in one of the most popular ETFs, the SPDR S&P 500 ETF (SPY). This ETF aims to mirror the performance of the S&P 500 Index, which comprises 500 of the largest U.S. companies. When investors purchase a share of SPY, they effectively invest in all 500 companies in the S&P 500 Index at once. This allows them to avoid the risk and cost associated with picking individual stocks, while still receiving broad exposure to the U.S. equity market. Consequently, investors are able to diversify their portfolios and mitigate risk. Another engaging instance is the emerging trend of thematic ETFs, which are designed to capitalize on certain themes or trends in the market. For example, the ARK Innovation ETF (ARKK) has become popular for its focus on disruptive innovation, holding stocks of companies in sectors like genomics, fintech, automation, and energy storage. In 2020, ARKK witnessed a surge in interest due to its substantial holdings in companies that performed well during the pandemic, such as Tesla and Teladoc. The ARK Innovation ETF’s approach illustrates how ETFs can be used to access nascent industry trends that may offer significant growth potential. #fintech #data #finance

WealthTrust Long-Term Growth ETF (NYSE Arca: WLTG) Identifying companies with the potential for sustained growth, all aimed toward outperforming the market with less risk. The cornerstone of WLTG’s strategy is its rigorous quantitative analysis. For 21 years, McHugh has refined a methodology that evaluates a database of 9,000 companies, identifying those with the highest potential for long-term growth. This approach significantly reduces the likelihood of investing in companies that miss their earnings estimates, a critical factor in maintaining a lower standard deviation, implying less volatility and thereby improving risk adjusted returns. WLTG’s strategy is built on a disciplined process of screening companies based on their quantitative rankings. This method involves assessing various financial metrics, such as earnings revisions on a quarterly basis, to ensure that only the most promising companies are included in the portfolio. Historically, the market misses earnings estimates about 25% of the time, whereas WLTG’s companies miss only around 5% of the time. This discrepancy translates into a higher likelihood of outperforming the market with less risk. https://lnkd.in/eN6fbTaZ

PwC's Global ETF Report provides a roadmap to the $19.2 Trillion market, tailoring trends and projections to elevate your investment strategy. Read Marie Coady's insights here. #ETFs #AuM

PwC's Global ETF Report provides a roadmap to the $19.2 Trillion market, tailoring trends and projections to elevate your investment strategy. Read Marie Coady's insights here. #ETFs #AuM

Assets in actively managed ETFs top $1 trillion worldwide Sept 27 (Reuters) - Assets in actively managed exchange-traded funds (ETFs) worldwide hit a record $1 trillion at the end of August, according to data provider ETFGI, boosted by easier regulations and a wave of product innovation. Active ETFs seek to outperform the indexes they are benchmarked to, including the S&P 500, the Nasdaq 100 and the Russell 1000 Growth Index. Bear Stearns launched the first active ETF in 2008. While they make up just 7% of all global ETFs, active ETFs have accounted for 30% of all inflows into the funds as a whole for the last several years, Matthew Bartolini, head of SPDR Americas Research at State Street Research, told Reuters in the latest episode of Inside ETFs. A key growth catalyst, analysts said, was the 2019 regulation popularly known as the “ETF rule,” which streamlined the complex process of winning approval for active ETFs from the U.S. Securities and Exchange Commission. Assets in the active ETF category have grown about 10-fold since 2019, according to data from ETF.com. Growth has continued this year. As of Aug. 31, active ETF assets soared 42%, data from ETFGI showed. The more relaxed regulations have also fueled innovation, Bartolini said, encouraging issuers to take novel approaches to products as they vie for investor dollars. Active ETFs run the gamut from the plain vanilla, such as the BlackRock Large Cap Value ETF (BLCV.P), opens new tab to more niche offerings, like the AdvisorShares Vice ETF (VICE.P), opens new tab, which invests in shares of companies involved in the alcohol, tobacco and cannabis industries. "These regulatory rule changes have actually accelerated some of the more novel approaches that ETF issuers can bring to the marketplace," Bartolini said. Active ETFs include products that have been wildly volatile, such as Ark Innovation ETF (ARKK.P), opens new tab, which soared 152% in 2020, only to slump 23% the following year. So far in 2024, it has lost 9.74%, compared with a 20% gain in the S&P 500. Some can also magnify risk, such as leveraged ETFs tied to the performance of individual stocks like Nvidia (NVDA.O), opens new tab. Nor are all active ETF issuers faring well. The 10 largest issuers accounted for 75% of active ETF assets, according to a Morningstar report from earlier this year. The bottom half of active equity ETFs have only 3% of all the group's assets. "ETFs that repackage old-fashioned stock-picking have struggled to attract assets," said Jack Shannon, manager research analyst at Morningstar, in a report published on Tuesday. Tim Huver, senior vice president of ETF Servicing at Brown Brothers Harriman, said active ETFs may require investors to do more due diligence. Nonetheless, he believes the category has reached a turning point. A Brown Brothers survey found that more than 90% of ETF investors intended to increase their allocation to active ETFs, Huver said.

ETFS---> Quite common & direct. But what are Inverse ETFs? Let's take a look 👉An Inverse ETF is a financial instrument designed to move in the opposite direction of the underlying index or asset it tracks This can be used by investors to hedge against declines or to profit from downward movements in the market Example:Consider Investor A - a cautious investor concerned about a potential market downturn III Market Index - a broad index representing the market Investor A anticipates that the market index will decline in value and wants to profit from this expected movement As a result, Investor A purchases shares in an Inverse ETF that tracks the market index Terms of the Investment: Investor A buys 100 shares of the Inverse ETF at $50 per share, totaling $5,000 The Inverse ETF aims to provide a return of -1x the daily performance of the market index Daily Performance: Let's look at two scenarios over a single day to understand the potential outcomes Scenario 1: Market Index Declines 2% On a given day, the market index falls by 2% ➡The Inverse ETF, aiming to move inversely, will increase by 2% ➡ The new price per share of the Inverse ETF becomes $51 ($50 + 2% of $50) ➡ The total value of Investor A's holdings in the Inverse ETF is now $5,100 (100 shares* $51) Investor A realizes a profit of $100 ($5,100 - $5,000), successfully capitalizing on the market decline Scenario 2: Market Index Increases 3% In this case, the market index rises by 3% on a given day ➡ The Inverse ETF, moving in the opposite direction, will decrease by 3% Scenario 1: Market Index Declines 2% On a given day, the market index falls by 2% The Inverse ETF, aiming to move inversely, will increase by 2% The new price per share of the Inverse ETF becomes $51 ($50 + 2% of $50) The total value of Investor A's holdings in the Inverse ETF is now $5,100 (100 shares* $51) Investor A realizes a profit of $100 ($5,100 -$5.000), successfully capitalizing on the market decline Scenario 2: Market Index Increases 3% In this case, the market index rises by 3% on a given day ➡ The Inverse ETF. moving in the opposite direction.will decrease by 3%. The new price per share of the Inverse ETF becomes $48. 50 ($50 - 3% of $50) The total value of Investor A's holdings in the Inverse ETF is now $4,850 (100 shares * $48.50) Investor A incurs a loss of $150 ($5,000 - $4,850) as a result of the market index's rise #galgotiasuniversity #finance #sharemarket #etf #motilaloswal #securitiescompany #sbimutualfund Abhilasha Upadhyay The Valuation School Kanchan Sharma Aradhana Galgotia School of Business (SOB) Galgotias University Dr. Pratiksha Jha Neeraj Sahani

ETFwork.com: The Future of ETF Innovation and Insights Welcome to ETFwork.com, the domain at the heart of the rapidly expanding world of Exchange-Traded Fund (ETF). This name symbolizes expertise, innovation, and a strong commitment to providing resources, tools, and strategies for navigating the evolving ETF market. Whether you're a financial services provider, investment platform, or ETF strategist, ETFwork.com communicates authority and trust in the realm of finance and ETF. ETFwork.com is perfect for ventures such as: ETF Research and Analytics: Provide cutting-edge insights, analysis, and data-driven tools for investors looking to optimize their portfolios with ETF. Investment Platforms: Build an intuitive platform where users can explore, compare, and invest in a wide array of ETFs, making investment accessible and efficient for all. Educational Resources: Develop a knowledge hub that offers courses, guides, and strategies for financial professionals and retail investors to better understand and leverage ETF. In a world where ETF are becoming essential tools for investors seeking diversified and cost-efficient portfolios, ETFwork.com offers the perfect domain to lead, educate, and empower those who want to thrive in the market. Secure ETFwork.com today and transform the future of ETF investing. Check out using this secure GoDaddy link! https://lnkd.in/gb58pE9c

Category Report - Equity: Sector - Technology Updated monthly, our Category Reports offer a 30,000-ft. view of a given ETF category. Inside, you'll find at-a-glance visualizations of flows and category growth; structure breakdown of ETFs within the category; which ETFs are outperforming and underperforming; risk relative to broad benchmarks and category averages; composition and fundamental analysis and much, much more. The category reports utilize ETF Action's proprietary ratings for efficient and effective analysis. Highlights from April's Technology Category Report: https://lnkd.in/exhK4q27 The Equity: Sector - Technology category is made up of 30 ETFs with nearly $218 billion in total assets under management The Vanguard Information Technology ETF (VGT) and the Technology Select Sector SPDR Fund (XLK) are the largest ETFs in the category, each with over $62 billion in AUM Half of the ETFs in the category have more than $1 billion in AUM and 11 ETFs have average daily volume above $10 million The average expense ratio is 41 bps, the average lifespan is 13.43 years, and the average ADV is $161.51 million Technology ETFs saw more than $1 billion in net inflows in April and have gathered nearly $11 billion in net inflows year-to-date VGT and the VanEck Semiconductor ETF (SMH) have each gathered more than $3 billion in net inflows thus far in 2024 while the iShares Expanded Tech-Software Sector ETF (IGV) has seen $1.2 billion in net outflows All Technology ETFs posted losses in April, average 1-month return was -5.22% and average YTD return was +5.09% The IDX Dynamic Innovation ETF (DYNI) was the worst performer on the month, declining 9.60% Notably, SMH has climbed more than 22% year-to-date The category is heavily tilted towards Large-Cap Growth names (45.96% average exposure) and has high stock concentration 5 ETFs in the category have high growth ratings and 3 ETFs have high quality ratings Care to have more in-depth market data & commentary (including our Category Reports) delivered daily for FREE? Subscribe to our Morning Focus here: https://lnkd.in/ez29Dap Use our FREE Dashboards, many with real-time pricing, to gain actionable intelligence : www.etfaction.com To use our FREE, award-winning, ETF Database you will need to create an account (no cc required). You can do that here: https://lnkd.in/ehhBKkSC #investments #investing #ETFs

**overview of ETFs with various types of assets*/ 1. **Equity ETFs**: - Example: Vanguard Total Stock Market ETF (VTI) - This ETF tracks the performance of the CRSP US Total Market Index, providing investors with exposure to the entire U.S. equity market, including large, mid, small-cap, and micro-cap stocks. 2. **Bond ETFs**: - Example: iShares Core U.S. Aggregate Bond ETF (AGG) - This ETF seeks to replicate the performance of the Bloomberg Barclays U.S. Aggregate Bond Index, which includes investment-grade bonds such as U.S. Treasury bonds, corporate bonds, and mortgage-backed securities. 3. **Sector ETFs**: - Example: Technology Select Sector SPDR Fund (XLK) - This ETF invests in companies within the technology sector of the S&P 500 index, providing investors with exposure to leading technology companies such as Apple, Microsoft, and Alphabet (Google). 4. **Commodity ETFs**: - Example: SPDR Gold Shares (GLD) - This ETF tracks the price of gold bullion and is designed to reflect the performance of the price of gold bullion, less the expenses of the fund. 5. **International ETFs**: - Example: iShares MSCI EAFE ETF (EFA) - This ETF tracks the performance of the MSCI EAFE Index, which includes large and mid-cap stocks from developed markets outside of North America, such as Europe, Australasia, and the Far East. 6. **Country-specific ETFs**: - Example: iShares MSCI Germany ETF (EWG) - This ETF seeks to track the performance of the MSCI Germany Index, providing investors with exposure to the German equity market by investing in companies listed on German stock exchanges. 7. **Thematic ETFs**: - Example: ARK Innovation ETF (ARKK) - This ETF invests in companies that are focused on disruptive innovation, including areas such as genomics, robotics, artificial intelligence, and blockchain technology. 8. **Fixed-Income ETFs**: - Example: iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) - This ETF tracks the performance of the investment-grade corporate bond sector of the U.S. bond market, providing investors with exposure to high-quality corporate bonds issued by U.S. companies..