At the beginning of this year, the New York Stock Exchange made five bold predictions for the active ETF market in 2022:
So how did we do in 2022?
Three for five is respectable and an improvement over our two for five performance in 2021. All told, despite plenty of challenges, 2022 was another strong year for the active ETF market.
Beyond our bold predictions, there are three additional stats from the year that stood out to us:
Source: Factset as of 12/31/2022
Source: Factset as of 12/31/2022
The actively managed ETF industry grew across nearly all asset classes throughout 2022. Equity flows continued to be the story of the industry, leading the way with $70.9 billion. Investors favored domestic equity exposure (+$47.6 billion) to global (+$23.3 billion) and value to growth. Notably, ETFs that focused on yield through a dividend tilt and/or an options overlay led the industry. Fixed income flows, $8.4 billion, rallied from their mid-year lows despite outflows from global fixed income. The flows that did come in favored ultra and short-term ETFs as well as municipals. Alternatives, $3.1 billion, gained their largest cash flow on record. Investors poured three times the amount of money into these ETFs than in the prior five years combined. Flows favored a combination of managed futures and real return strategies that focus on minimizing the impact of rising rates and inflation. Commodities reversed course in the second half with inflows of $5.6 billion at the start of the period, ceding to outflows in the second half and $2.8 billion in net 2022 flows.
Source: Factset as of 12/31/2022
| Global Equity | Domestic Equity | Domestic Fixed Income | Global Fixed Income | Commodities | Asset Allocation | Alternatives | Currency | |
|---|---|---|---|---|---|---|---|---|
| AUM Leader | Dimensional | Dimensional | JPMorgan | First Trust | Invesco | ETC | First Trust | ProShares |
| AUM Leader $B | $20.1 | $48.2 | $29.4 | $16.0 | $6.1 | $1.5 | $1.1 | $0.5 |
| Q1 CF Leader | Dimensional | JPMorgan | JPMorgan | Dimensional | Invesco | Mohr | iMGP | ProShares |
| Q1 CF Leader $B | $11.5 | $13.7 | $5.4 | $2.5 | $1.8 | $0.2 | $1.0 | $0.2 |
Source: Factset as of 12/31/2022
At the issuer level, Dimensional and JPMorgan positioned themselves as the 2022 cash flow leaders, taking in $26.6 billion and $21.9 billion, respectively. The two firms demonstrated leadership in different ways, as Dimensional had 13 of their 30 ETFs surpassing $1 billion in flows while JPMorgan had the two biggest cash flow winners of the year: JEPI (+$13.0 billion) and JPST (+$5.6 billion). American Century/Avantis (+$10.0 billion), First Trust (+$7.3 billion), Capital Group (+$5.9 billion), and Innovator (+$5.6 billion) rounded out the list of issuers with greater than $5 billion in cash flows for their actively managed lineups. First Trust and Innovator’s flows were heavily driven by their defined outcome strategies. American Century/Avantis and Capital Group both saw flows across their lineups into their broader market, lower cost actively managed ETFs.
Source: Factset as of 12/31/2022
Despite volatile markets in 2022, over 77% of issuers experienced positive cash flows for the year and over a third had cash flows in excess of $50 million. In addition to the six issuers mentioned above, PGIM (+$2.0 billion), Amplify (+$1.6 billion), Janus Henderson (+$1.5 billion), Invesco (+$1.2 billion), and Fidelity (+$1.1 billion) all crossed $1 billion in net cash flows. These five issuers found varied paths to their success, from ultra-short fixed income (PGIM), dividend income (Amplify), AAA-rated CLOs (Janus Henderson), and commodities (Invesco) to broader fixed income (Fidelity). Led by the aforementioned Capital Group, an impressive nine new entrants to the ETF market crossed over $100 million in cash flow for the year. Issuers who entered the active ETF market in 2021 saw similar success in their first full year, with almost 80% of these issuers experiencing positive cash flows for 2022.
| Ticker | Top 10 ETFs by Cash Flow ($B) | 2022 ($M) |
|---|---|---|
JEPI | JPMorgan Equity Premium Income ETF | $12,983 |
JPST | JPMorgan Ultra-Short Income ETF | $5,558 |
DFAC | Dimensional U.S. Core Equity 2 ETF | $3,639 |
FTSM | First Trust Enhanced Short Maturity ETF | $3,574 |
AVUV | Avantis U.S. Small Cap Value ETF | $2,665 |
DFIC | Dimensional International Core Equity 2 ETF | $2,085 |
DFCF | Dimensional Core Fixed Income ETF | $2,019 |
PULS | PGIM Ultra Short Bond ETF | $1,918 |
DFAI | Dimensional International Core Equity Market ETF | $1,849 |
PDBC | Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF | $1,753 |
Source: Factset as of 12/31/2022
| Ticker | Bottom 10 ETFs by Cash Flow ($B) | 2022 ($M) |
|---|---|---|
MINT | PIMCO Enhanced Short Maturity Active ETF | $(4,496) |
SRLN | SPDR Blackstone Senior Loan ETF | $(2,051) |
FIXD | First Trust TCW Opportunistic Fixed Income ETF | $(1,360) |
LMBS | First Trust Low Duration Opportunities ETF | $(1,291) |
IVOL | Quadratic Interest Rate Volatility & Inflation Hedge ETF | $(1,200) |
JPHY | JPMORGAN HIGH YIELD RESEARCH ENHANCED ETF | $(996) |
FPE | First Trust Preferred Securities & Income ETF | $(867) |
COMT | iShares U.S. ETF Trust iShares GSCI Commodity Dynamic Roll Strategy ETF | $(844) |
IGBH | iShares Interest Rate Hedged Long-Term Corporate Bond ETF | $(677) |
KRBN | KraneShares Global Carbon ETF | $(665) |
At the product level, over 67% of active ETFs saw positive flows for the year and 233 experienced flows over $50 million (often viewed as a break-even measure for an ETF). As mentioned in our mid-year note, the industry’s asset weighted expense ratio dropped from 0.52% to 0.44% through the year, driven primarily by the impressive cash flow of lower fee ETFs such as JPST (0.18%) and JEPI (0.35%). Nearly 80% of all cash flows went into ETFs with expense ratios below the 44 bps industry average. In spite of this, roughly 72% of newly launched ETFs exceeded this industry average in 2022, though these funds only saw 25% of all fund flows to newly launched ETFs.
| Expense Ratio | 12/31/22 AUM | 2022 CF | % AUM | % CF | # ETFs |
|---|---|---|---|---|---|
| 0-25 | $129,119,498,632 | $36,731,321,205 | 38% | 43% | 99 |
| 26-50 | $98,042,605,230 | $32,437,790,020 | 29% | 38% | 216 |
| 51-75 | $57,532,017,673 | $2,480,783,745 | 17% | 3% | 264 |
| 76+ | $57,136,286,208 | $14,000,584,599 | 17% | 16% | 382 |
| Expense Ratio | 12/31/22 AUM | 2021 CF | % AUM | % CF | # ETFs |
|---|---|---|---|---|---|
| 0-25 | $87,189,444,847 | $19,242,732,049 | 30% | 16% | 71 |
| 26-50 | $72,611,193,035 | $20,904,115,920 | 25% | 23% | 157 |
| 51-75 | $79,966,872,501 | $31,816,809,580 | 24% | 34% | 189 |
| 76+ | $52,245,286,420 | $20,309,766,176 | 18% | 22% | 298 |
Source: Factset as of 12/31/2022
As the ETF industry enters its 30th year and the active market enters its 16th year, we have five more bold predictions for what 2023 will bring.
99 ETFs Launched
$18.5 B Assets Raised
28 ETFs Launched
$2.6 B Assets Raised
9 ETFs Launched
$451 M Assets Raised
68 ETFs Launched
$15.8 B Assets Raised
20 ETFs Launched
$773 M Assets Raised
13 ETFs Launched
$278 M Assets Raised
| Firms | |||
|---|---|---|---|
| # of Issuers | 193 | ||
| # of New Issuers 2022 | 47 | ||
| Products | Assets | ||
| # of ETFs | 961 | AUM ($B) | $341.83 |
| # of New Launches 2022 | 246 | 3 Yr AUM CAGR | 52% |
| Avg. ER | 0.44% | 5 Yr AUM CAGR | 52% |
| Cash Flow | Trading | ||
| YTD Cash Flow ($B) | $85.45 | YTD ADV (Shares) | 133,915,576 |
| 3 Yr Cash Flow | $235.65 | YTD ADV ($) | $5.23 B |
| 5 Yr Cash Flow | $2292.34 | YTD Avg. Spread (bps)* | 32.85 |
Source: Factset & NYSE Internal Database and Consolidated Tape Statistics as of 12/31/2022
*Simple average
| Ticker | Inception | Name | AUM | YTD Flows | 30 Day Median Spread (bps) | ADV (shares) | Structure | LMM | Expense Ratio |
|---|---|---|---|---|---|---|---|---|---|
| EQOP | 9/17/20 | Natixis U.S. Equity Opportunities ETF | $8,125,474 | $613,143 | 13.04 | 828 | NYSE AMS | Citadel | 0.85% |
| VNSE | 9/17/20 | Natixis Vaughan Nelson Select ETF | $11,915,702 | $8,247,761 | 12.02 | 1,974 | NYSE AMS | Citadel | 0.80% |
| VNMC | 9/17/20 | Natixis Vaughan Nelson Mid Cap ETF | $7,123,780 | $(576,696) | 14.195 | 612 | NYSE AMS | Citadel | 0.85% |
| ESGA | 7/15/20 | American Century Sustainable Equity ETF | $108,711,450 | $(25,415,394) | 12.37 | 10,989 | NYSE AMS | Citadel | 0.39% |
| MID | 7/15/20 | American Century Mid Cap Growth Impact ETF | $28,098,630 | $9,964,870 | 10.875 | 4,722 | NYSE AMS | Citadel | 0.45% |
| ESGY | 7/1/21 | American Century Sustainable Growth ETF | $6,108,557 | $1,144,328 | 7.55 | 334 | NYSE AMS | Citadel | 0.39% |
| NDVG | 8/5/21 | Nuveen Dividend Growth ETF | $7,680,529 | $1,704,247 | 8.51 | 3,634 | NYSE AMS | Citadel | 0.64% |
| NSCS | 8/5/21 | Nuveen Small Cap Select ETF | $5,462,678 | $24,166 | 11.27 | 394 | NYSE AMS | Citadel | 0.85% |
| NWLG | 8/5/21 | Nuveen Winslow Large-Cap Growth ESG ETF | $4,372,272 | $33,409 | 8.96 | 4,910 | NYSE AMS | Citadel | 0.64% |
| NUGO | 9/28/21 | Nuveen Growth Opportunities ETF | $2,074,650,760 | $(153,037,682) | 9.065 | 290,617 | NYSE AMS | Citadel | 0.55% |
| SAEF | 11/16/21 | Schwab Ariel ESG ETF | $12,880,650 | $7,175,250 | 42.71 | 3,516 | NYSE AMS | Flow Traders | 0.59% |
| IWLG | 6/23/22 | IQ Winslow Large Cap Growth ETF | $13,029,480 | $8,176,090 | 23.36 | 5,500 | NYSE AMS | Citadel | 0.60% |
| IWFG | 6/23/22 | IQ Winslow Focused Large Cap Growth ETF | $5,521,110 | $795,510 | 22.645 | 2,509 | NYSE AMS | Citadel | 0.65% |
| TSME | 10/5/22 | Thrivent Small-Mid Cap ESG ETF | $73,483,105 | $70,415,460 | 9.955 | 52,770 | NYSE AMS | RBC | 0.65% |
| FDG | 4/2/20 | American Century Focused Dynamic Growth ETF | $123,280,828 | $(13,253,821) | 11.965 | 22,080 | ActiveShares | Citadel | 0.45% |
| FLV | 4/2/20 | American Century Focused Large Cap Value ETF | $222,088,160 | $(7,596,253) | 10.31 | 9,318 | ActiveShares | Citadel | 0.42% |
| FBCG | 6/4/20 | Fidelity Blue Chip Growth ETF | $385,942,736 | $79,932,858 | 21.285 | 135,185 | Fidelity Proxy | GTS | 0.59% |
| FBCV | 6/4/20 | Fidelity Blue Chip Value ETF | $137,909,486 | $39,522,443 | 27.555 | 27,618 | Fidelity Proxy | GTS | 0.59% |
| FMIL | 6/4/20 | Fidelity New Millennium ETF | $83,044,144 | $20,200,759 | 34.38 | 14,538 | Fidelity Proxy | GTS | 0.59% |
| FGRO | 2/4/21 | Fidelity Growth Opportunities ETF | $54,863,533 | $22,960,461 | 14.505 | 152,222 | Fidelity Proxy | Citadel | 0.59% |
| FMAG | 2/4/21 | Fidelity Magellan ETF | $41,305,383 | $241,853 | 12.415 | 14,841 | Fidelity Proxy | RBC | 0.59% |
| FPRO | 2/4/21 | Fidelity Real Estate Investment ETF | $16,243,389 | $(804,779) | 11.04 | 5,487 | Fidelity Proxy | Citadel | 0.59% |
| FSMO | 2/4/21 | Fidelity Small/Mid-Cap Opportunities ETF | $27,948,438 | $1,021,122 | 9.115 | 6,984 | Fidelity Proxy | RBC | 0.59% |
| FSST | 6/17/21 | Fidelity Sustainability U.S. Equity ETF | $7,269,893 | $2,335,523 | 12.6 | 1,409 | Fidelity Proxy | RBC | 0.59% |
| FDWM | 6/17/21 | Fidelity Women's Leadership ETF | $3,380,055 | $1,686,895 | 13.97 | 898 | Fidelity Proxy | RBC | 0.59% |
| TCHP | 8/5/20 | T. Rowe Price Blue Chip Growth ETF | $260,337,796 | $113,332,745 | 11.375 | 129,435 | T Rowe Proxy | Virtu | 0.57% |
| TDVG | 8/5/20 | T. Rowe Price Dividend Growth ETF | $273,369,165 | $160,605,821 | 9.995 | 42,969 | T Rowe Proxy | RBC | 0.50% |
| TEQI | 8/5/20 | T. Rowe Price Equity Income ETF | $99,308,477 | $47,122,299 | 8.8 | 19,193 | T Rowe Proxy | Virtu | 0.54% |
| TGRW | 8/5/20 | T. Rowe Price Growth Stock ETF | $34,733,694 | $5,925,824 | 11.6 | 13,409 | T Rowe Proxy | RBC | 0.52% |
| TSPA | 6/8/21 | T. Rowe Price U.S. Equity Research ETF | $23,125,985 | $4,832,218 | 10.945 | 2,716 | T Rowe Proxy | RBC | 0.52% |
| IVDG | 12/22/20 | Invesco Focused Discovery Growth ETF | $693,080 | $(207,050) | 10.77 | 317 | Invesco Model | Citadel | 0.59% |
| IVSG | 12/22/20 | Invesco Select Growth ETF | $839,889 | $(95,330) | 10.825 | 332 | Invesco Model | Citadel | 0.48% |
| IVLC | 12/22/20 | Invesco US Large Cap Core ESG ETF | $5,632,022 | $(24,960) | 16.375 | 1,352 | Fidelity Proxy | Citadel | 0.48% |
| IVRA | 12/22/20 | Invesco Real Assets ESG ETF | $3,083,163 | $1,085,240 | 33.72 | 1,444 | Fidelity Proxy | Citadel | 0.59% |
| LOPP | 2/1/21 | Gabelli Love Our Planet & People ETF | $12,602,100 | $3,319,190 | 77.85 | 592 | ActiveShares | GTS | 0.90% |
| GGRW | 2/16/21 | Gabelli Growth Innovators ETF | $2,084,600 | $(252,075) | 26.495 | 432 | ActiveShares | GTS | 0.90% |
| GAST | 1/5/22 | Gabelli Asset ETF | $4,391,310 | $244,380 | 47.455 | 100 | ActiveShares | GTS | 0.90% |
| GABF | 5/11/22 | Gabelli Financial Services Opportunities ETF | $5,223,960 | $261,400 | 75.295 | 239 | ActiveShares | GTS | 0.00% |
| FRTY | 3/1/21 | Alger Mid Cap 40 ETF | $28,616,000 | $6,703,375 | 42.25 | 19,565 | ActiveShares | Virtu | 0.60% |
| ATFV | 5/4/21 | Alger 35 ETF | $8,992,500 | $268,250 | 41.86 | 1,438 | ActiveShares | Virtu | 0.55% |
| REIT | 2/26/21 | ALPS Active REIT ETF | $17,131,448 | $(4,502,900) | 26.965 | 4,835 | Blue Tractor | GTS | 0.68% |
| STNC | 3/16/21 | Hennessy Stance ESG Large Cap ETF | $42,150,132 | $- | 28.965 | 2,711 | Blue Tractor | GTS | 0.85% |
| PFUT | 5/26/21 | Putnam Sustainable Future ETF | $7,160,040 | $1,347,571 | 33.47 | 1,772 | Fidelity Proxy | Virtu | 0.64% |
| PLDR | 5/26/21 | Putnam Sustainable Leaders ETF | $5,906,321 | $(6,316) | 10.875 | 345 | Fidelity Proxy | RBC | 0.59% |
| PGRO | 5/26/21 | Putnam Focused Large Cap Growth ETF | $9,527,127 | $2,783,478 | 10.34 | 1,951 | Fidelity Proxy | RBC | 0.55% |
| PVAL | 5/26/21 | Putnam Focused Large Cap Value ETF | $136,565,286 | $114,138,296 | 30.365 | 25,588 | Fidelity Proxy | Virtu | 0.55% |
| HFGO | 11/9/21 | Hartford Large Cap Growth ETF | $72,298,888 | $79,387,269 | 29.42 | 102,966 | Fidelity Proxy | Citadel | 0.59% |
| SEMI | 3/30/22 | Columbia Seligman Semiconductor and Technology ETF | $13,993,977 | $10,711,950 | 36.585 | 8,261 | Fidelity Proxy | Virtu | 0.75% |
| CAPE | 4/5/22 | DoubleLine Shiller CAPE U.S. Equities ETF | $207,174,100 | $216,526,800 | 14.06 | 98,909 | ActiveShares | Citadel | 0.65% |
| FMCX | 4/25/22 | FMC Excelsior Focus Equity ETF | $69,946,350 | $2,198,100 | 48.075 | 1,121 | ActiveShares | GTS | 0.70% |
| BYRE | 5/19/22 | Principal Real Estate Active Opportunities ETF | $4,962,849 | $5,497,348 | 25.83 | 1,470 | Fidelity Proxy | Virtu | 0.65% |
| Total/Average | $4,820,290,481 | $846,714,446 | 21.89 | 1,257,353 | 0.61% |
Source: Factset & NYSE Internal Database and Consolidated Tape Statistics as of 12/31/2022
*Simple average
| Ticker | Name | Issuer | Launch Date | Asset Class | AUM |
|---|---|---|---|---|---|
| DECT | AllianzIM U.S. Large Cap Buffer10 Dec ETF | Allianz | 12/1/22 | Equity | $18,008,850 |
| DECW | AllianzIM U.S. Large Cap Buffer20 Dec ETF | Allianz | 12/1/22 | Equity | $83,654,940 |
| INTL | Main International ETF | Main Management | 12/2/22 | Equity | $55,970,200 |
| SECD | Senior Secured Credit Opportunities ETF | Toroso Investments | 12/6/22 | Fixed Income | $496,798 |
| QVOY | Q3 All-Season Active Rotation ETF | Q3 Asset Management Corp. | 12/7/22 | Asset Allocation | $49,760,000 |
| DFLV | Dimensional US Large Cap Value ETF | Dimensional Holdings | 12/7/22 | Equity | $179,977,980 |
| DFGR | Dimensional Global Real Estate ETF | Dimensional Holdings | 12/7/22 | Equity | $204,524,065 |
| HIYS | Invesco High Yield Select ETF | Invesco | 12/9/22 | Fixed Income | $9,840,825 |
| ICLO | Invesco AAA CLO Floating Rate Note ETF | Invesco | 12/9/22 | Fixed Income | $30,183,625 |
| IMSI | Invesco Municipal Strategic Income ETF | Invesco | 12/9/22 | Fixed Income | $29,847,650 |
| ISDB | Invesco Short Duration Bond ETF | Invesco | 12/9/22 | Fixed Income | $9,998,425 |
| RNWZ | TrueShares Eagle Global Renewable Energy Income ETF | TrueMark Group | 12/9/22 | Equity | $2,473,390 |
| BABX | GraniteShares 1.75x Long BABA Daily ETF | GraniteShares | 12/13/22 | Equity | $737,725 |
| FBL | GraniteShares 1.5x Long Meta Daily ETF | GraniteShares | 12/13/22 | Equity | $797,727 |
| NVDL | GraniteShares 1.5x Long NVDA Daily ETF | GraniteShares | 12/13/22 | Equity | $563,419 |
| DIP | BTD Capital Fund | Exchange Traded Concepts | 12/13/22 | Equity | $1,699,600 |
| VEMY | Virtus Stone Harbor Emerging Markets High Yield Bond ETF | Virtus Investment Partners | 12/13/22 | Fixed Income | $3,735,850 |
| PBL | PGIM Portfolio Ballast ETF | PGIM | 12/14/22 | Asset Allocation | $24,866,580 |
| PJFG | PGIM Jennison Focused Growth ETF | PGIM | 12/14/22 | Equity | $9,870,000 |
| PJFV | PGIM Jennison Focused Value ETF | PGIM | 12/14/22 | Equity | $10,292,310 |
| INFR | ClearBridge Sustainable Infrastructure ETF | Franklin Templeton | 12/16/22 | Equity | $2,432,000 |
| JHID | John Hancock International High Dividend ETF | John Hancock | 12/21/22 | Equity | $5,007,460 |
| PIT | VanEck Commodity Strategy ETF | VanEck | 12/22/22 | Commodities | $20,132,000 |
| KCAL | Subversive Food Security ETF | Subversive | 12/22/22 | Equity | $615,285 |
| DKRB | Subversive Decarbonization ETF | Subversive | 12/22/22 | Equity | $623,943 |
| ARP | PMV Adaptive Risk Parity ETF | PMV Capital Advisers LLC | 12/22/22 | Alternatives | $28,003,085 |
| SANE | Subversive Mental Health ETF | Subversive | 12/23/22 | Equity | $621,848 |
| BOXX | Alpha Architect 1-3 Month Box ETF | Alpha Architect | 12/28/22 | Fixed Income | $17,003,383 |
| CHRG | Element EV, Solar & Battery Materials (Lithium, Nickel, Copper, Cobalt) Futures Strategy ETF | Element ETFs LLC | 12/29/22 | Commodities | $5,000,000 |
| FCUS | Pinnacle Focused Opportunities ETF | Toroso Investments | 12/30/22 | Equity | $500,000 |
| Total - 30 New ETFs | $807,238,960 |
Source: Factset & NYSE Internal Database and Consolidated Tape Statistics as of 12/31/2022
*Simple average
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