Active ETF Filings Accelerate to New Highs

2020 has been a banner year for the active ETF industry. At the New York Stock Exchange, we expect this trend to continue throughout 2021. A recent internal analysis revealed that over 130 active ETF registration statements have been submitted to the SEC since the end of Q2 2020. During the fourth quarter alone, 73 actively managed ETF filings have been made. This includes the first two semi-transparent active ETFs using Blue Tractor’s Shielded Alpha structure.

Dimensional Funds Enters the ETF Market and Follows Guiness Atkinson in Plans to Convert Legacy Mutual Funds into ETFs

Dimensional Funds joins NYSE-listed ETF issuer Guinness Atkinson in seeking to convert existing mutual funds to ETFs. The conversion -- coupled with the recent launch of active ETFs DFAU, DFAI and DFAE on NYSE Arca -- would make Dimensional Funds one of the largest active ETF sponsors by assets under management (AUM). The full press release can be found here.

Earlier this year, Guinness Atkinson announced the planned conversion of two mutual funds -- Guinness Atkinson Asia Pacific Dividend Builder Fund & Guinness Atkinson Dividend Builder Fund -- into two new ETFs under its NYSE-listed SmartETF brand. Details on the conversion can be found here.

The New York Stock Exchange Receives Approval to List Semi-Transaprent ETFs on the NYSE Floor

On Dec. 1, the NYSE received regulatory approval to list active, semi-transparent ETFs on the Floor of the Exchange. Listing on the NYSE would provide active managers access to our unique floor model, which combines human oversight and accountability via Designated Market Makers with world-class technology. We're excited by this important next step to be able to list ETFs directly on the iconic NYSE Floor. We look forward to bringing you updates as we move closer to the first launch.

Precidian Joins the NYSE in Seeking Additional Basket Flexibility for Active Managers

On Nov. 27, Precidian amended their exemptive relief filing with the SEC to allow for additional basket flexibility within their active ETF model. The NYSE, Fidelity and Blue Tractor all have previously filed, as we shared in our last update. If approved, future asset managers using the Precidian ActiveShares model will be able to construct creation/redemption baskets (“custom baskets”) that differ from the actual portfolio. This would improve the operational efficiency of the structure and potentially reduce costs for sponsors. The full filings for each sponsor are available here: NYSE, Blue Tractor, Fidelity, and Precidian.

Spotlight: November 2020

November was another month of growth and inflows for the active ETF market. There was$5.4 billion in new cash flow for the month, and year-to-date cash flow is now $47 billion.AUM now totals $155 billion.

Active ETF Fund Flows By Month

Market growth was again led by thematic Equity ETF strategies, ultra/short-term Fixed Income strategies, and renewed interest in higher-yielding senior loan, core bond and preferred securities.

Active ETF Fund Flows By Asset Class

Source: Factset as of 11/30/2020

At the issuer level, ARK Invest surpassed a record month in October ($2.1 billion) with $2.9 billion in cash flow across its five thematic ETFs during November. Its success was well distributed yet again, with all five of the firm’s ETFs making the industry’s top 10 cash flow list this month. Outside of ARK, American Century ($126 million), Amplify ($84 million), AdvisorShares ($83 million) and LeaderShares ($81 million) led Equity inflows. Market leaders First Trust ($658 million), J.P. Morgan ($438 million) and PIMCO ($269 million) drove Fixed Income growth during the month, with support from State Street ($253 million). Other notable contributions across all asset classes came from Fidelity ($178 million), Quadratic ($162 million), and newcomer Simplify ($62 million).

During the month, 51 issuers, representing 61% of all active ETF issuers, experienced positive cash flows across their lineup. Year-to-date, 67 issuers (81%) have experienced net inflows. For the month, 202 active ETFs (46%) experienced positive cash flow compared to 310 (71%) year-to date. 27 active ETFs (6%) have surpassed the $1 billion mark and 155 (35%) have passed the $100 million mark.

Top 5 Issuers by Cash Flow November 2020

Active ETF Stat Pack

Active, Semi-Transparent Update

November Active ETF Launches