WEEKLY UPDATE 9/27

Last week House Democrats launched an impeachment inquiry and President Trump considered a plan to delist Chinese companies from major U.S. equity exchanges as part of a broader effort to limit U.S. access to Chinese investments.

Major news was also announced today by Schwab, who will be eliminating stock, ETF and option trading commissions beginning October 7th.

With politics dominating the news, the markets slumped. Here’s last week’s biggest trends in the ETF marketplace.

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One Week ETF Trends

US Listed ETFs – Equity – 1 Week Best & Worst Returns

Last week, the iShares MSCI Turkey ETF TUR led equity returns as the government set goals for 5% GDP growth and lowered inflation in 2020. Utilities ETFs also made significant gains as a category.

Cannabis ETFs THCX and YOLO dropped nearly 10%, Followed by Oil & Gas ETF XES and solar energy ETF TAN.

US Listed ETFs – Fixed Income – 1 Week Best & Worst Returns

Long term treasury ETFs led the charge for fixed income returns again last week, led by Pimco ETF ZROZ.

US Listed ETFs – Equity – 1 Week Top Inflows & Outflows

SPY saw $2.7B in inflows last week, which far outpaced QQQ and VTI.

Vanguard Mid-Cap ETF VO saw the largest outflows in the equity category with -$972.5M

US Listed ETFs – Fixed Income -1 Week Top Inflows & Outflows

Vanguard International Bond BNDX saw largest inflows, followed by a suite of iShares Treasury bond ETFs IEF, IEI, and TLT.

Short term Bond ETF BSV saw the largest outflows, followed by short term treasury ETF SHV.

On-Screen Liquidity Momentum

Top 10 secondary-market volume increases where ADV 5-day increased substantially over ADV 20-day and ADV 5-day > $10mm

ETF NameTicker%Diff.
Xtrackers S&P 500 ESG ETFSNPE388%
SPDR Portfolio Mortgage Backed Bond ETFSPMB348%
iShares Edge MSCI Multifactor Intl ETFINTF301%
Global X MLP & Energy Infrastructure ETFMLPX288%
iShares Global Healthcare ETFIXJ285%
Vanguard Total International Bond ETFBNDX251%
iShares U.S. Financial Services ETFIYG242%
Schwab Short-Term U.S. Treasury ETFSCHO227%
iShares U.S. Healthcare Providers ETFIHF225%
iShares Edge MSCI Intl Quality Factor ETFIQLT224%

Launches, Filings, Closings, & Changes

Launches

  • Invesco adds 9 ETFs to its BulletShares family of target-maturity fixed income ETFs all with 18bps expense ratio
    • Invesco BulletShares 2021 Municipal Bond ETF BSML
    • Invesco BulletShares 2022 Municipal Bond ETF BSMM
    • Invesco BulletShares 2023 Municipal Bond ETF BSMN
    • Invesco BulletShares 2024 Municipal Bond ETF BSMO
    • Invesco BulletShares 2025 Municipal Bond ETF BSMP
    • Invesco BulletShares 2026 Municipal Bond ETF BSMQ
    • Invesco BulletShares 2027 Municipal Bond ETF BSMR
    • Invesco BulletShares 2028 Municipal Bond ETF BSMS
    • Invesco BulletShares 2029 Municipal Bond ETF BSMT
  • Liquid Strategies, a Georgia-based mutual fund provider, is entering the ETF industry with a suite of put spread equity ETFs
    • Overlay Shares Core Bond ETF OVB
    • Overlay Shares Foreign Equity ETF OVF
    • Overlay Shares Large Cap Equity ETF OVL
    • Overlay Shares Municipal Bond ETF OVM
    • Overlay Shares Small Cap Equity ETF OVS
  • Columbia Threadneedle added two new equity ETFs
    •  Columbia Research Enhanced Core ETF RECS, 15bps
    •  Columbia Research Enhanced Value ETF REVS, 19bps
  • Avantis Investors, subsidiary of American Century, launched 4 new active factor ETFs
    • Avantis International Equity ETF AVDE, 23bps
    • Avantis International Small Cap Value ETF AVDV, 36bps
    • Avantis U.S. Equity ETF AVUS, 15bps
    • Avantis U.S. Small Cap Value ETF AVUV, 25bps
  • Nuveen launched the first ESG Junk Bond ETF
    • Nuveen ESG High Yield Corporate Bond ETF NUHY, 35bps
  • The Inspire International ESG ETFWWJD, 80bps
  • Innovator added to its defined outcome ETFs
    • Innovator Nasdaq-100 Power Buffer ETF — October NOCT, 79bps
    • Innovator Russell 2000 Power Buffer ETF — October KOCT, 79bps

Filings

  • Salt Low truBeta US Market ETF LSLT
  • Pacer American Energy Independence ETF USAI, 75bps

Closings

  • AdvisorShares New Tech and Media ETF FNG to close on Oct. 4

Expense Ratio Changes

  • Main Sector Rotation ETF SECT, 78→83bps
  • ProShares Global Listed Private Equity ETF PEX, 278→313bps
  • Xtrackers Harvest CSI 300 China A-Shares ETF ASHR, 66→65bps
  • Xtrackers MSCI Europe Hedged Equity ETF DBEU, 46→45bps
  • Xtrackers MSCI Japan Hedged Equity ETF DBJP, 46→45bps

Other Changes

  • The October Series of Innovator’s S&P 500 Buffer ETFs resets today
    • The Innovator S&P 500 Buffer ETF BOCT comes with a 9% downside buffer and has a new upside cap of 14.12%.
    • The Innovator S&P 500 Power Buffer ETF POCT comes with a downside buffer of 15% and has a new upside cap of 9.2%
    • The Innovator S&P 500 Ultra Buffer ETF UOCT comes with a downside buffer that protects against losses between 5% and 35% and has a new upside cap of 7.7%.