Ron Rowland: Thirteen new ETFs launched in July, but no ETNs came on the scene. For the first time in twelve months, there was not any closure activity. The quantity of listed products climbed to 1,491 at the end of July, consisting of 1,286 ETFs and 205 ETNs. Only one of the new ETFs is actively managed, increasing the quantity of actively managed ETFs to 62, or about 4% of the population.
Trading activity dropped dramatically to just $1.21 trillion, a 27.4% decrease from the June amount. There were 10% more trading days in July (22 versus 20), so the average daily dollar volume plunged a whopping 34.0%. SPDR S&P 500 ETF (SPY) accounted for 32.1%, or $17.6 billion, of daily ETP trading activity.
As a result of the trading drought, the number of ETFs averaging more than $1 billion a day in trading shrank from thirteen to just five. Additionally, these top-tier trading vehicles captured only 48.1% of the total dollar volume, failing to surpass the 50% mark for the first time in memory. ETPs averaging more than $100 million of daily trading dropped from 85 to 71, yet still captured an 86% market share.
Although trading died down, the month was very kind to ETF sponsors as assets under management increased 6.7% to $1.5 trillion. The number of ETFs exceeding $10 billion in assets increased from 33 to 35 and accounted for 54.3% of all ETP assets. ETPs with more than $1 billion in assets now number 203 and have an 88.6% market share.
The decrease in trading activity and the increase in product assets combined to reduce the monthly turnover ratio (total dollar volume divided by assets under management) from 1.16 to 0.79.
|July 2013 Month End||ETFs||ETNs||Total|
|Currently Listed U.S.||1,286||205||1,491|
|Listed as of 12/31/2012||1,239||206||1,445|
|New Introductions for Month||13||0||13|
|Delistings/Closures for Month||0||0||0|
|Net Change for Month||+13||0||+13|
|New Introductions 6 Months||74||6||80|
|New Introductions YTD||77||8||85|
|Net Change YTD||+47||-1||+46|
|Assets Under Mgmt ($ billion)||$1,513||$20.6||$1,536|
|% Change in Assets for Month||+6.7%||+3.8%||+6.7%|
|Qty AUM > $10 Billion||35||0||35|
|Qty AUM > $1 Billion||198||5||203|
|Qty AUM > $100 Million||619||26||645|
|% with AUM > $100 Million||48.1%||12.7%||43.3%|
|Monthly $ Volume ($ billion)||$1,183||$26.1||$1,209|
|% Change in Monthly $ Volume||-27.0%||-44.1%||-27.4%|
|Avg Daily $ Volume > $1 Billion||5||0||5|
|Avg Daily $ Volume > $100 Million||69||2||71|
|Avg Daily $ Volume > $10 Million||251||8||259|
Data sources: Daily prices and volume of individual ETPs from Norgate Premium Data. Fund counts and all other information compiled by Invest With An Edge.
New products launched in July (sorted by launch date):