Recapping April 2021
MAy 6, 2021
NEWS FROM THE ACTIVE ETF MARKET
A Remarkable April in a Year to Remember
In April, the active ETF market saw $9.1 billion in cash flow, a figure that is double last April’s total, nearly five times greater than April of 2019 and greater than the year-to-date (YTD) total for this time last year. YTD cash flow now totals $45.2 billion. At nearly 14% of record total YTD ETF industry cash flows ($331 billion), the active ETF market is far outpacing its roughly 3% market share. Flows in April were led by ongoing investor interest in thematic and ESG strategies, including a record $2 billion in launch-day flows for two ESG ETFs from BlackRock, as well as strategies focused on hedging against inflation and providing access to preferred and senior loan securities.
Historical April & YTD ETF Cash Flow 2019-2021
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Source FactSet as of 4/30/2021
Activity Continues in the Semi-Transparent ETF Market
Following its rapid growth and early success, the semi-transparent ETF market continues to gain steam. Since January, there have been 10 new product launches, four new asset managers announcing market entry and SEC approval of the market’s first custom basket capabilities using the NYSE Active Proxy Structure and Blue Tractor’s Shielded AlphaSMwrapper.
Most Recent Launches
- Alger: On May 4, Alger launched its second active ETF: Alger 35 ETF (NYSE: ATFV). It joins the Alger Mid Cap 40 ETF (NYSE: FRTY) that launched in February 2021 and uses ActiveSharesSM.
- Stance Capital: On March 16, Stance Capital launched its first active ETF: Stance Equity ESG Large Cap Core ETF (NYSE: STNC). The ETF uses Blue Tractor’s Shielded AlphaSM wrapper.
New Market Entry & Product Announcements
- Schwab: On April 5, current ETF sponsor Schwab filed for relief to launch one active ETF using the NYSE Active Proxy Structure. The initial ETF, Schwab Ariel ESG ETF, will be sub-advised by Ariel Investments and is Schwab’s first ESG-focused ETF.
- American Century: On April 15, American Century filed for their third active ETF using the NYSE Active Proxy Structure. The ETF, American Century Sustainable Growth ETF, will be similar to American Century’s two in-market ETFs by maintaining an investment focus on companies that demonstrate ESG principles.
- Capital Group: On April 30, new ETF entrant Capital Group filed for relief to launch an ETF using the Fidelity Active ETF Methodology. The filing omits an ETF name and builds on Capital Group’s previously stated intentions to enter the ETF market in 2022 with a mix of equity and fixed income strategies.
Additional Insights on the Active ETF Market
- Bloomberg Markets: Claire Ballentine highlights the record number of ETF launches that have occurred through mid-April of 2021, mentioning that actively managed ETFs are driving growth and investor demand remains elevated.
- ETF Prime: In the April 13 episode of Nate Geraci’s weekly podcast, he sits down with Old Mission Capital and Vident Investment Advisory to discuss ETF market making and the role of an ETF sub-adviser.
- Bloomberg Trillions: In the April 15 episode of Trillions, Eric Balchunas and Joel Weber sit down with Jim Atkinson (Guinness Atkinson) and Alexandra Alberstadt (lawyer, Practus) to discuss the recent - and first - conversion of two active mutual funds to ETFs.
- U.S. News & World Report: Ellen Chang breaks down semi-transparent ETFs, with commentary on their growth from Douglas Yones, and covers how advisors incorporate them into portfolios.
Active ETF Stat Pack
| Firms | |||
| # of Issuers | 108 | ||
| # of New Issuers 2021 | 15 | ||
| Products | Assets | ||
| # of ETFs | 548 | AUM ($B) | $218.14 |
| # of New Launches 2021 | 80 | 3 Yr AUM CAGR | 162% |
| Avg. ER | 0.56% | 5 Yr AUM CAGR | 57% |
| Cash Flow | Trading | ||
| YTD Cash Flow ($B) | $45.10 | YTD ADV (Shares) | 66,822,236 |
| 3 Yr Cash Flow | $149.70 | YTD ADV ($) | $4.25B |
| 5 Yr Cash Flow | $177.90 | YTD Avg. Spread (bps)* | 29.10 |
Source: Factset & NYSE Internal Database and Consolidated Tape Statistics as of 4/30/2021
*Simple average
| Ticker | Top 10 ETFs by Cash Flow ($B) | April 2021 ($M) |
| LCTU | BlackRock U.S. Carbon Transition Readiness ETF | $1,309 |
| SRLN | SPDR Blackstone Senior Loan ETF | $800 |
| ARKK | ARK Innovation ETF | $640 |
| ARKX | ARK Space Exploration & Innovation ETF | $610 |
| JPST | JPMorgan Ultra-Short Income ETF | $350 |
| JAGG | JPMorgan U.S. Aggregate Bond ETF | $324 |
| IVOL | Quadratic Interest Rate Volatility & Inflation Hedge ETF | $321 |
| PDBC | Invesco Optimum Yield Diversified Commodity Strategy ETF | $253 |
| FTSL | First Trust Senior Loan Fund | $227 |
| JEPI | JPMorgan Equity Premium Income ETF | $219 |
| Ticker | Bottom 10 ETFs by Cash Flow | April 2021 ($M) |
| ARKW | ARK Next Generation Internet ETF | $(312) |
| FTSM | First Trust Enhanced Short Maturity ETF | $(114) |
| AWTM | Aware Ultra-Short Duration Enhanced Income ETF | $(103) |
| PDEC | Innovator S&P 500 Power Buffer ETF - December | $(78) |
| DJAN | FT Cboe Vest U.S. Equity Deep Buffer ETF - January | $(72) |
| GSY | Invesco Ultra Short Duration ETF | $(58) |
| ULTR | IQ Ultra Short Duration ETF | $(52) |
| VNLA | Janus Henderson Short Duration Income ETF | $(52) |
| PJAN | Innovator S&P 500 Power Buffer ETF - January | $(43) |
| LMBS | First Trust Low Duration Opportunities ETF | $(38) |
Active, Semi-Transparent Update
Ticker |
Inception |
Name |
AUM |
YTD Cash Flow |
Avg. Spread (bps) |
ADV (shares) |
Structure |
LMM |
Expense Ratio |
| EQOP | 09/17/2020 | Natixis U.S. Equity Opportunities ETF | $13,847,820 | $ - | 18.28 | 74 | NYSE AMS | Citadel | 0.90% |
| VNSE | 09/17/2020 | Natixis Vaughan Nelson Select ETF | $7,231,081 | $288,685 | 19.08 | 1,107 | NYSE AMS | Citadel | 0.90% |
| VNMC | 09/17/2020 | Natixis Vaughan Nelson Mid Cap ETF | $10,559,360 | $1,224,256 | 17.51 | 2,212 | NYSE AMS | Citadel | 0.85% |
| ESGA | 07/15/2020 | American Century Sustainable Equity ETF | $146,568,828 | $21,877,359 | 14.25 | 10,790 | NYSE AMS | Citadel | 0.39% |
| MID | 07/15/2020 | American Century Mid Cap Growth Impact ETF | $14,270,094 | $6,375,824 | 14.5 | 2,409 | NYSE AMS | Citadel | 0.45% |
| FDG | 04/02/2020 | American Century Focused Dynamic Growth ETF | $221,285,605 | ($12,923,079) | 11.19 | 26,364 | ActiveShares | Citadel | 0.45% |
| FLV | 04/02/2020 | American Century Focused Large Cap Value ETF | $239,474,590 | $49,221,452 | 13.49 | 9,781 | ActiveShares | Citadel | 0.42% |
| CFCV | 05/28/2020 | ClearBridge Focus Value ETF | $3,648,756 | $732 | 23.75 | 138 | ActiveShares | GTS | 0.50% |
| FBCG | 06/04/2020 | Fidelity Blue Chip Growth ETF | $330,140,095 | $111,244,765 | 13.98 | 196,817 | Fidelity Proxy | GTS | 0.59% |
| FBCV | 06/04/2020 | Fidelity Blue Chip Value ETF | $83,085,570 | $30,646,003 | 12.93 | 52,846 | Fidelity Proxy | GTS | 0.59% |
| FMIL | 06/04/2020 | Fidelity New Millennium ETF | $54,967,000 | $26,708,350 | 14.46 | 34,990 | Fidelity Proxy | GTS | 0.59% |
| FGRO | 02/04/2021 | Fidelity Growth Opportunities ETF | $26,999,393 | $24,684,758 | 5.18 | 47,110 | Fidelity Proxy | Citadel | 0.59% |
| FMAG | 02/04/2021 | Fidelity Magellan ETF | $25,845,600 | $22,408,523 | 13.97 | 41,942 | Fidelity Proxy | RBC | 0.59% |
| FPRO | 02/04/2021 | Fidelity Real Estate Investment ETF | $8,497,125 | $5,659,155 | 4.74 | 13,553 | Fidelity Proxy | Citadel | 0.59% |
| FSMO | 02/04/2021 | Fidelity Small/Mid-Cap Opportunities ETF | $21,374,808 | $17,919,715 | 13.49 | 28,753 | Fidelity Proxy | RBC | 0.59% |
| TCHP | 08/05/2020 | T. Rowe Price Blue Chip Growth ETF | $125,820,952 | $53,020,429 | 8.54 | 47,302 | T Rowe Proxy | Virtu | 0.57% |
| TDVG | 08/05/2020 | T. Rowe Price Dividend Growth ETF | $59,469,589 | $17,317,444 | 6.36 | 14,434 | T Rowe Proxy | RBC | 0.50% |
| TEQI | 08/05/2020 | T. Rowe Price Equity Income ETF | $41,725,404 | $13,375,895 | 9.45 | 9,657 | T Rowe Proxy | Virtu | 0.54% |
| TGRW | 08/05/2020 | T. Rowe Price Growth Stock ETF | $37,782,509 | $8,842,871 | 7.59 | 8,165 | T Rowe Proxy | RBC | 0.52% |
| IVDG | 12/22/2020 | Invesco Focused Discovery Growth ETF | $1,397,563 | $120,580 | 16.35 | 1,749 | Invesco Model | Citadel | 0.59% |
| IVSG | 12/22/2020 | Invesco Select Growth ETF | $1,333,913 | $ - | 15.72 | 1,144 | Invesco Model | Citadel | 0.48% |
| IVLC | 12/22/2020 | Invesco US Large Cap Core ESG ETF | $1,618,693 | $267,740 | 15.49 | 1,043 | Fidelity Proxy | Citadel | 0.48% |
| IVRA | 12/22/2020 | Invesco Real Assets ESG ETF | $1,384,414 | $ - | 32.25 | 2,197 | Fidelity Proxy | Citadel | 0.59% |
| LOPP | 02/01/2021 | Gabelli Love Our Planet & People ETF | $9,143,310 | $5,410,085 | 16.16 | 4,943 | ActiveShares | GTS | 0.90% |
| GGRW | 02/16/2021 | Gabelli Growth Innovators ETF | $3,494,790 | $1,046,960 | 18.99 | 1,218 | ActiveShares | GTS | 0.90% |
| FRTY | 03/01/2021 | Alger Mid Cap 40 ETF | $21,749,375 | $15,934,750 | 35.05 | 31,996 | ActiveShares | Virtu | 0.60% |
| REIT | 02/26/2021 | ALPS Active REIT ETF | $13,580,054 | $9,788,100 | 16.29 | 13,259 | Blue Tractor | GTS | 0.68% |
| STNC | 03/16/2021 | Stance Equity ESG Large Cap Core ETF | $33,167,750 | $5,006,379 | 33.86 | 8,413 | Blue Tractor | GTS | 0.85% |
|
|
Total/Average |
$$1,559,464,040 |
$435,467,729 |
15.82 |
614,409 |
|
|
0.61% |
Source: Factset & NYSE Internal Database and Consolidated Tape
Statistics as of 4/30/2021
*Simple average
April Active ETF Launces
| Ticker | Name | Issuer | Launch Date | Asset Class | AUM |
| EAPR | Innovator MSCI Emerging Markets Power Buffer ETF | Innovator | 04/01/2021 | Equity | $19,685,000.00 |
| IAPR | Innovator MSCI EAFE Power Buffer ETF | Innovator | 04/01/2021 | Equity | $24,891,750.00 |
| PSCW | Pacer Swan SOS Conservative (April) ETF | Pacer Advisors | 04/01/2021 | Equity | $1,580,250.00 |
| PSFM | Pacer Swan SOS Flex (April) ETF | Pacer Advisors | 04/01/2021 | Equity | $5,355,000.00 |
| PSMR | Pacer Swan SOS Moderate (April) ETF | Pacer Advisors | 04/01/2021 | Equity | $2,645,000.00 |
| QTAP | Innovator Growth Accelerated Plus ETF - April | Innovator | 04/01/2021 | Equity | $5,398,000.00 |
| XBAP | Innovator U.S. Equity Accelerated 9 Buffer ETF - April | Innovator | 04/01/2021 | Equity | $24,728,500.00 |
| XDAP | Innovator US Equity Accelerated ETF | Innovator | 04/01/2021 | Equity | $6,627,500.00 |
| XDQQ | Innovator Growth Accelerated ETF - Quarterly | Innovator | 04/01/2021 | Equity | $6,043,500.00 |
| XDSQ | Innovator US Equity Accelerated ETF | Innovator | 04/01/2021 | Equity | $5,280,000.00 |
| XTAP | Innovator U.S. Equity Accelerated Plus ETF | Innovator | 04/01/2021 | Equity | $4,637,500.00 |
| LCTU | BlackRock U.S. Carbon Transition Readiness ETF | Blackrock | 04/08/2021 | Equity | $1,352,363,190.00 |
| LCTD | BlackRock World ex U.S. Carbon Transition Readiness ETF | Blackrock | 04/08/2021 | Equity | $591,318,000.00 |
| PAB | PGIM Active Aggregate Bond ETF | Prudential | 04/15/2021 | Fixed Income | $25,081,250.00 |
| UGCE | Uncommon Portfolio Design Core Equity ETF | Uncommon | 04/16/2021 | Equity | $1,013,600.00 |
| XVOL | Acruence Active Hedge U.S. Equity ETF | Toroso Investments | 04/22/2021 | Equity | $1,002,845.00 |
| EATZ | AdvisorShares Restaurant ETF | AdvisorShares | 04/21/2021 | Equity | $1,804,600.00 |
| BEDZ | AdvisorShares Hotel ETF | AdvisorShares | 04/21/2021 | Equity | $1,793,400.00 |
| DAPR | FT Cboe Vest U.S. Equity Deep Buffer ETF - April | First Trust | 04/19/2021 | Equity | $66,455,460.41 |
| FAPR | FT Cboe Vest U.S. Equity Buffer ETF - April | First Trust | 04/19/2021 | Equity | $60,686,060.69 |
| FORH | Formidable ETF | Formidable Asset Management | 04/30/2021 | Equity | $1,250,000.00 |
| VSLU | Applied Finance Valuation Large Cap ETF | Applied Finance Group | 04/30/2021 | Equity | $1,250,000.00 |
Total |
22 New Active ETFs |
|
|
|
$2,210,890,406.10 |
Source: Factset as of 4/30/2021
NYSE ETF Summit & Active ETF Webinar Series Replay
Missed the April NYSE ETF Summit or our Active ETF Webinar series? Access replays from the Summit here or visit HomeofETFs.com to catch up.
Hear from ETF experts representing the various active ETF structures, fund sponsors such as American Century, Fidelity, PIMCO and T. Rowe Price, liquidity providers such as Flow Traders and Jane Street, and service providers such as BNY Mellon and State Street.