Fast & Furious Start to 2021 Growth

February 25, 2021

News from the Active ETF Market

In just under two months, the active ETF market has seen $30.7 billion in cash flow year-to-date (YTD). No, that’s not a typo! The market has already received more cash flow YTD than all prior full calendar years, excluding 2020. ARK remains a primary driver of this remarkable start, capturing $17.4 billion - or 57% - of active ETF industry cash flow YTD. Outside of ARK, though, industry growth remains very strong. The $13.3 billion in YTD cash flow has shattered the prior full-Q1 record of $5.9 billion set in 2018. Notably, and important for broad industry opportunity, growth remains very diversified, with nearly 60% of issuers on pace to break Q1 2020 cash flow records.

The Growth of Active ETFs

Source FactSet as of 2/19/2021

Competition Heats Up in the Semi-Transparent ETF Market

In January’s update, the NYSE analyzed the early successes of semi-transparent ETFs, covering the market’s rapid rise to over $1 billion in assets under management (AUM), early product diversity and well-functioning secondary markets. There’s been no shortage of market news in the month since, including six new product launches, two new asset managers announcing market entry and SEC approval of the market’s first custom basket capabilities using the NYSE Active Proxy Structure.

New Launches

Gabelli: On Feb. 1, Gabelli launched its first semi-transparent ETF: ESG-focused Gabelli Love Our Planet & People ETF (LOPP). Notably, Gabelli is offering a full fee waiver for the first $100 million invested for up to a year. Additionally, on Feb. 16, Gabelli launched the innovation-focused Gabelli Growth Innovators ETF (GGRW).

Fidelity: On Feb. 2, Fidelity doubled down on its active equity lineup with the launch of four new ETFs, including a clone of its flagship Magellan Fund. With this launch Fidelity now offers seven semi-transparent ETFs.

Fidelity Magellan ETF (FMAG)
Fidelity Growth Opportunities ETF (FGRO)
Fidelity Real Estate Investment ETF (FPRO)
Fidelity Small-Mid Cap Opportunities (FSMO)

New Market Entry & Product Announcements

Nuveen: On Feb. 4, current ETF sponsor Nuveen filed for relief to launch three semi-transparent ETFs using the NYSE Active Proxy Structure. The three initial ETFs listed in the filing include:

Nuveen Small-Cap Select ETF
Nuveen Santa Barbara Dividend Growth ETF
Nuveen Winslow Large-Cap Growth ETF

Putnam: On Feb. 17, Putnam filed to enter the ETF market with the launch of four semi-transparent ETFs using Fidelity’s Proxy Structure. The four initial ETFs listed in the filing include:

Putnam Focused Large Cap Growth ETF
Putnam Focused Large Cap Value ETF
Putnam Sustainable Future ETF
Putnam Sustainable Leaders ETF

T. Rowe Price: On Feb. 8, T. Rowe Price filed for another semi-transparent ETF: T. Rowe Price U.S. Equity Research ETF. Similar to T. Rowe’s four in-market ETFs, this strategy will closely resemble an existing mutual fund.

Additional Insights on the Active ETF Market

Brown Brothers Harriman, Exchange Thoughts: The NYSE teamed up with BBH to co-author “Active ETFs: Helping Managers Navigate the Various ETF Structures,” a guide for asset managers on key considerations for assessing the active ETF market.
The Wall Street Journal, Markets & ETFs: Michael Wursthorn provides perspective from bank channel executives at Bank of America and UBS on their approach to approving semi-transparent ETFs on their wealth management platforms.
The ETF Educator, ETF Buzz: In the Feb. 19 edition of ETF Store President Nate Geraci’s weekly note, he shares articles on the success of ARK, Putnam’s entry into the ETF market, ETF vs. mutual fund growth and more.
Seeking Alpha, Let’s Talk ETFs: Host Jonathan Liss sits down with Greg Friedman, Fidelity’s Head of ETF Management and Strategy, to discuss the firm’s active ETFs and the early adoption they are seeing.

Active ETF Stat Pack

Firms
# of Issuers	97
# of New Issuers 2021	4
Products		Assets
# of ETFs	505	AUM ($B)	$210.81
# of New Launches 2021	33	3 Yr AUM CAGR	165%
Avg. ER	0.56%	5 Yr AUM CAGR	57%
Cash Flow		Trading
YTD Cash Flow ($B)	$30.7	YTD ADV (Shares)	60,264,534
3 Yr Cash Flow	$139.4	YTD ADV ($)	$4.01 B
5 Yr Cash Flow	$162.8	YTD Avg. Spread (bps)*	29.40

Active, Semi-Transparent Update

Ticker	Inception	Name	AUM	Flows	Avg. Spread (bps)	ADV (shares)	Structure	LMM	Expense Ratio
EQOP	09/17/2020	Natixis U.S. Equity Opportunities ETF	$12,553,471	$ -	14.39	121	NYSE AMS	Citadel	0.90%
VNSE	09/17/2020	Natixis Vaughan Nelson Select ETF	$6,591,744	$288,685	15.91	705	NYSE AMS	Citadel	0.90%
VNMC	09/17/2020	Natixis Vaughan Nelson Mid Cap ETF	$9,042,795	$880,401	23.06	865	NYSE AMS	Citadel	0.85%
ESGA	07/15/2020	American Century Sustainable Equity ETF	$125,384,010	$10,551,998	15.11	11,185	NYSE AMS	Citadel	0.39%
MID	07/15/2020	American Century Mid Cap Growth Impact ETF	$11,227,540	$2,784,123	15.28	2,028	NYSE AMS	Citadel	0.45%
FDG	04/02/2020	American Century Focused Dynamic Growth ETF	$238,613,964	$3,069,548	14.44	22,308	ActiveShares	Citadel	0.45%
FLV	04/02/2020	American Century Focused Large Cap Value ETF	$182,158,120	$7,708,194	16.45	9,071	ActiveShares	Citadel	0.42%
CFCV	05/28/2020	ClearBridge Focus Value ETF	$3,239,866	$545	32.12	140	ActiveShares	GTS	0.50%
FBCG	06/04/2020	Fidelity Blue Chip Growth ETF	$286,004,080	$70,583,078	19.99	227,294	Fidelity Proxy	GTS	0.59%
FBCV	06/04/2020	Fidelity Blue Chip Value ETF	$52,759,770	$8,096,170	24.12	44,434	Fidelity Proxy	GTS	0.59%
FMIL	06/04/2020	Fidelity New Millennium ETF	$33,811,310	$10,152,280	24.39	31,743	Fidelity Proxy	GTS	0.59%
FGRO	02/04/2021	Fidelity Growth Opportunities ETF	$12,919,625	$10,883,843	5.87	79,688	Fidelity Proxy	Citadel	0.59%
FMAG	02/04/2021	Fidelity Magellan ETF	$3,537,625	-	10.99	266,950	Fidelity Proxy	RBC	0.59%
FPRO	02/04/2021	Fidelity Magellan ETF	$3,516,485	$1,510,388	7.36	16,712	Fidelity Proxy	CItadel	0.59%
FSMO	02/04/2021	Fidelity Small/Mid-Cap Opportunities ETF	$7,351,225	$5,270,880	16.75	48,026	Fidelity Proxy	RBC	0.59%
TCHP	08/05/2020	T. Rowe Price Blue Chip Growth ETF	$90,761,840	$23,303,856	9.81	49,063	T Rowe Proxy	Virtu	0.57%
TDVG	08/05/2020	T. Rowe Price Dividend Growth ETF	$45,871,163	$8,271,175	7.01	17,137	T Rowe Proxy	RBC	0.50%
TEQI	08/05/2020	T. Rowe Price Equity Income ETF	$29,101,365	$4,560,107	9.88	7,414	T Rowe Proxy	Virtu	0.54%
TGRW	08/05/2020	T. Rowe Price Growth Stock ETF	$32,463,760	$4,770,528	7.96	10,031	T Rowe Proxy	RBC	0.52%
IVDG	12/22/2020	Invesco Focused Discovery Growth ETF	$1,314,000	$ -	24.24	2,274	Invesco Model	Citadel	0.59%
IVLC	12/22/2020	Invesco US Large Cap Core ESG ETF	$1,242,000	$ -	14.93	997	Fidelity Proxy	Citadel	0.48%
IVRA	12/22/2020	Invesco Real Assets ESG ETF	$1,249,000	$ -	19.88	2,051	Fidelity Proxy	Citadel	0.59%
IVSG	12/22/2020	Invesco Select Growth ETF	$1,301,000	$ -	17.70	1,766	Invesco Model	Citadel	0.48%
LOPP	02/01/2021	Gabelli Love Our Planet & People ETF	$7,526,040	$4,464,910	23.55	18,562	ActiveShares	GTS	0.90%
GGRW	2/16/2021	Gabelli Growth Innovators ETF	$2,461,500	$ -	74.74	1,642	ActiveShares	GTS	0.48%
		Total/Average	$1,209,223,093	$188,306,008	16.39	696,952			0.59%

Source: Factset & NYSE Internal Database and Consolidated Tape Statistics as of 2/19/2021
*Simple average

February Active ETF Launches

Ticker	Name	Issuer	Launch Date	Asset Class	AUM
LOPP	Gabelli Love Our Planet & People ETF	GAMCO Investors, Inc.	02/01/2021	Equity	$4,604,400
FEBZ	TrueShares Structured Outcome (February) ETF	TrueMark Investments	02/01/2021	Equity	$1,275,605
SENT	AdvisorShares Alpha DNA Equity Sentiment ETF	AdvisorShares	02/03/2021	Equity	$46,219,935
MBND	SPDR Nuveen Municipal Bond ETF	State Street	02/04/2021	Fixed Income	$30,029,671
FGRO	Fidelity Growth Opportunities ETF	Fidelity	02/04/2021	Equity	$2,060,000
FMAG	Fidelity Magellan ETF	Fidelity	02/04/2021	Equity	$3,537,625
FPRO	Fidelity Real Estate Investment ETF	Fidelity	02/04/2021	Equity	$2,009,990
FSMD	Fidelity Small-Mid Cap Opportunities ETF	Fidelity	02/04/2021	Equity	$2,066,750
SUBZ	Roundhill Streaming Services & Technology ETF	Roundhill Investments	02/10/2021	Equity	$48,080,070
VABS	Virtus Newfleet ABS/MBS ETF	Virtus Investment Partners	02/10/2021	Fixed Income	$6,262,100.19
GGRW	Gabelli Growth Innovators ETF	GAMCO Investors, Inc.	02/16/2021	Equity	$2,461,500
EFIX	First Trust TCW Emerging Markets Debt ETF	First Trust	02/18/2021	Fixed Income	$20,079,040.16
QCON	American Century Quality Convertible Securities ETF	American Century Investments	02/18/2021	Fixed Income	$2,982,366
QPFF	American Century Quality Preferred ETF	American Century Investments	02/18/2021	Fixed Income	$3,001,815
Total	14 New Funds Launched				$91,803,976

Source: Factset & NYSE Internal Database and Consolidated Tape Statistics as of 2/5/2021
*Simple average

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