Q&A with TIDAL
Published
This week we sit down with Gavin Filmore at Tidal to discuss the company’s views and support of the active ETF market.
Tidal is an ETF platform provider that offers asset managers a turnkey solution as they look to enter the ETF market. For those that are unaware, what specific services do you provide asset managers?
As you say, Tidal is a platform for anyone who wants to launch and grow successful ETFs. Generally, we are referred to as a white-label ETF provider, but the reality is that we are much more. Traditionally, a white-label provider only offers "operational" support, however, at Tidal we have a full stack offering that goes beyond the operational base. We provide our partners with marketing, distribution, and trading among our robust and complete suite of services to support a new and growing ETF business.
Over the last few years active ETFs have become an area of growth for the ETF industry. Based on your role and client conversations, what have been the catalysts and what needs to happen for the industry to continue to grow?
Active ETFs are on fire across the industry and certainly here at Tidal! Why? Well, I think it comes down to a number of reasons:
- Market acceptance: Questions surrounding if the market as a whole will embrace and support active ETFs are no longer present. The market has matured and now we see full support for active ETFs.
- Market conditions: As the market contracted over the past 12+ months, allocators were looking for product that goes beyond beta exposure. Therefore, active strategies, especially those which go beyond the "norm," are in vogue and asset managers are taking notice.
- New market entrants: The ETF market is now home to an increasing number of non-traditional managers. We are seeing increased interest from hedge funds, family offices, and various “alt” providers who view the ETF wrapper as optimal for various reasons. This naturally pushes the boundaries of what style of product is brought to market and generally tilts towards an active investment process.
Tidal has supported several actively managed asset managers launch new ETF businesses. What, if any, additional considerations should a firm be aware of as they work through market entry as an active manager?
Honestly, entering the ETF market is hard whether you bring passive or active product to market. Is active harder? I don't think so. The necessary conditions for success are the same; you ideally have a mix of unique product, seed, and eyeballs to drive success. Arguably, it's easier to bring unique product when you remove the constraint of a passive investment process!
The conversions of RIA SMA accounts to ETFs is an accelerating trend we are seeing. What do you believe is driving this trend and how can Tidal assist in these conversions?
This is going to be an absolute Tidal wave in the industry ;) The ETF wrapper is extremely tax efficient and therefore generally more favorable to end investors than running a strategy in SMA form. Beyond that, there is operational ease for the manager of the strategy. Finally, you have the ability to scale assets in a way that is VASTLY different in the ETF market. For any RIA that is considering jumping into the ETF market, it’s critical to have a partner who can help you navigate through the complexity of the ETF market. Tidal, its ~45 employees, and our network of partners are well positioned to help any RIA come to market and grow!
Lastly, what guidance would you provide sponsors as they consider expanding their product offerings to include actively managed ETFs?
This is a complex topic and requires deep discussion with industry experts. Tidal is an amazing source of free information as are exchanges like the NYSE. Reach out to us and let us provide that education to help inform your decisions.
Active ETF Stat Pack
| Firms | |||
|---|---|---|---|
| # of Issuers | 207 | ||
| # of New Issuers 2023 | 8 | ||
| Products | Assets | ||
| # of ETFs | 999 | AUM ($B) | $374.89 |
| # of New Launches 2023 | 32 | 3 Yr AUM CAGR | 52% |
| Avg. ER | 0.45% | 5 Yr AUM CAGR | 51% |
| Cash Flow | Trading | ||
| YTD Cash Flow ($B) | $16.27 | YTD ADV (Shares) | 143,031,409 |
| 3 Yr Cash Flow | $244.25 | YTD ADV ($) | $4.73 B |
| 5 Yr Cash Flow | $305.08 | YTD Avg. Spread (bps)* | 30.68 |
Source: Factset & NYSE Internal Database and Consolidated Tape Statistics as of 2/17/2023
*Simple average
Active, Semi-Transparent Update
| Ticker | Inception | Name | AUM | YTD Flows | 30 Day Median Spread (bps) | ADV (shares) | Structure | LMM | Expense Ratio |
|---|---|---|---|---|---|---|---|---|---|
| EQOP | 09/17/2020 | Natixis U.S. Equity Opportunities ETF | $8,922,033 | $(41,315) | 16.05 | 108 | NYSE AMS | Citadel | 0.85% |
| VNSE | 09/17/2020 | Natixis Vaughan Nelson Select ETF | $12,749,027 | $527,654 | 14.56 | 2,060 | NYSE AMS | Citadel | 0.80% |
| VNMC | 09/17/2020 | Natixis Vaughan Nelson Mid Cap ETF | $7,405,029 | $- | 16.07 | 183 | NYSE AMS | Citadel | 0.85% |
| ESGA | 07/15/2020 | American Century Sustainable Equity ETF | $112,932,200 | $468,010 | 16.83 | 4,465 | NYSE AMS | Citadel | 0.39% |
| MID | 07/15/2020 | American Century Mid Cap Growth Impact ETF | $32,572,600 | $2,096,745 | 12.23 | 2,951 | NYSE AMS | Citadel | 0.45% |
| ESGY | 07/01/2021 | American Century Sustainable Growth ETF | $6,876,360 | $340,530 | 16.76 | 483 | NYSE AMS | Citadel | 0.39% |
| NDVG | 08/05/2021 | Nuveen Dividend Growth ETF | $7,924,000 | $250,321 | 11.45 | 506 | NYSE AMS | Citadel | 0.64% |
| NSCS | 08/05/2021 | Nuveen Small Cap Select ETF | $5,763,238 | $- | 25.3 | 24 | NYSE AMS | Citadel | 0.85% |
| NWLG | 08/05/2021 | Nuveen Winslow Large-Cap Growth ESG ETF | $4,805,600 | $188,861 | 16.5 | 456 | NYSE AMS | Citadel | 0.64% |
| NUGO | 09/28/2021 | Nuveen Growth Opportunities ETF | $2,272,596,600 | $74,314,017 | 14.42 | 203,263 | NYSE AMS | Citadel | 0.55% |
| SAEF | 11/16/2021 | Schwab Ariel ESG ETF | $14,339,000 | $114,600 | 45.38 | 1,854 | NYSE AMS | Flow Traders | 0.59% |
| IWLG | 06/23/2022 | IQ Winslow Large Cap Growth ETF | $16,565,780 | $2,905,650 | 27.63 | 3,618 | NYSE AMS | Citadel | 0.60% |
| IWFG | 06/23/2022 | IQ Winslow Focused Large Cap Growth ETF | $5,771,346 | $- | 27.2 | 231 | NYSE AMS | Citadel | 0.65% |
| TSME | 10/05/2022 | Thrivent Small-Mid Cap ESG ETF | $106,331,400 | $27,288,186 | 9.69 | 30,189 | NYSE AMS | RBC | 0.65% |
| FDG | 04/02/2020 | American Century Focused Dynamic Growth ETF | $127,023,150 | $(4,331,512) | 12.87 | 7,630 | ActiveShares | Citadel | 0.45% |
| FLV | 04/02/2020 | American Century Focused Large Cap Value ETF | $226,176,000 | $4,760,749 | 11.67 | 7,533 | ActiveShares | Citadel | 0.42% |
| FBCG | 06/04/2020 | Fidelity Blue Chip Growth ETF | $448,038,750 | $18,383,219 | 22.7 | 100,471 | Fidelity Proxy | GTS | 0.59% |
| FBCV | 06/04/2020 | Fidelity Blue Chip Value ETF | $137,653,750 | $1,388,610 | 31.17 | 16,817 | Fidelity Proxy | GTS | 0.59% |
| FMIL | 06/04/2020 | Fidelity New Millennium ETF | $91,260,000 | $4,490,022 | 30.97 | 17,172 | Fidelity Proxy | GTS | 0.59% |
| FGRO | 02/04/2021 | Fidelity Growth Opportunities ETF | $98,554,750 | $35,609,298 | 16.51 | 125,772 | Fidelity Proxy | Citadel | 0.59% |
| FMAG | 02/04/2021 | Fidelity Magellan ETF | $42,282,000 | $(945,920) | 12.38 | 7,301 | Fidelity Proxy | RBC | 0.59% |
| FPRO | 02/04/2021 | Fidelity Real Estate Investment ETF | $16,554,000 | $(1,025,699) | 18.38 | 3,710 | Fidelity Proxy | Citadel | 0.59% |
| FSMO | 02/04/2021 | Fidelity Small/Mid-Cap Opportunities ETF | $31,523,000 | $1,669,831 | 8.67 | 6,938 | Fidelity Proxy | RBC | 0.59% |
| FSST | 06/17/2021 | Fidelity Sustainability U.S. Equity ETF | $8,198,250 | $487,135 | 11.75 | 1,364 | Fidelity Proxy | RBC | 0.59% |
| FDWM | 06/17/2021 | Fidelity Women's Leadership ETF | $4,951,788 | $2,106,613 | 11.23 | 209 | Fidelity Proxy | RBC | 0.59% |
| TCHP | 08/05/2020 | T. Rowe Price Blue Chip Growth ETF | $303,554,310 | $24,322,175 | 10.6 | 109,338 | T Rowe Proxy | Virtu | 0.57% |
| TDVG | 08/05/2020 | T. Rowe Price Dividend Growth ETF | $296,685,100 | $23,884,663 | 10.42 | 48,060 | T Rowe Proxy | RBC | 0.50% |
| TEQI | 08/05/2020 | T. Rowe Price Equity Income ETF | $107,512,250 | $7,010,621 | 10.61 | 17,714 | T Rowe Proxy | Virtu | 0.54% |
| TGRW | 08/05/2020 | T. Rowe Price Growth Stock ETF | $39,071,074 | $1,097,577 | 11.59 | 8,312 | T Rowe Proxy | RBC | 0.52% |
| TSPA | 06/08/2021 | T. Rowe Price U.S. Equity Research ETF | $24,612,197 | $470,101 | 11.12 | 2,549 | T Rowe Proxy | RBC | 0.52% |
| IVDG | 12/22/2020 | Invesco Focused Discovery Growth ETF | $608,410 | $(102,860) | 13.09 | 462 | Invesco Model | Citadel | 0.59% |
| IVSG | 12/22/2020 | Invesco Select Growth ETF | $898,903 | $(10,160) | 12.56 | 2,085 | Invesco Model | Citadel | 0.48% |
| IVLC | 12/22/2020 | Invesco US Large Cap Core ESG ETF | $6,241,712 | $373,860 | 17.98 | 1,109 | Fidelity Proxy | Citadel | 0.48% |
| IVRA | 12/22/2020 | Invesco Real Assets ESG ETF | $3,164,584 | $- | 37.54 | 1,157 | Fidelity Proxy | Citadel | 0.59% |
| LOPP | 02/01/2021 | Gabelli Love Our Planet & People ETF | $12,926,613 | $- | 53.17 | 184 | ActiveShares | GTS | 0.90% |
| GGRW | 02/16/2021 | Gabelli Growth Innovators ETF | $2,247,000 | $- | 30.67 | 110 | ActiveShares | GTS | 0.90% |
| GAST | 01/05/2022 | Gabelli Asset ETF | $4,608,870 | $- | 46.73 | 42 | ActiveShares | GTS | 0.90% |
| GABF | 05/11/2022 | Gabelli Financial Services Opportunities ETF | $6,035,050 | $144,465 | 71.34 | 145 | ActiveShares | GTS | 0.00% |
| GCAD | 01/03/2023 | Gabelli Commercial Aerospace & Defense ETF | $3,492,450 | $884,405 | 54.25 | 1,309 | ActiveShares | GTS | 0.90% |
| FRTY | 03/01/2021 | Alger Mid Cap 40 ETF | $28,693,500 | $(1,242,375) | 41.4 | 10,527 | ActiveShares | Virtu | 0.60% |
| ATFV | 05/04/2021 | Alger 35 ETF | $9,358,673 | $(181,000) | 40.68 | 160 | ActiveShares | Virtu | 0.55% |
| REIT | 02/26/2021 | ALPS Active REIT ETF | $18,316,851 | $127,350 | 28.25 | 3,413 | Blue Tractor | GTS | 0.68% |
| STNC | 03/16/2021 | Hennessy Stance ESG Large Cap ETF | $43,973,800 | $539,264 | 27.41 | 3,379 | Blue Tractor | GTS | 0.85% |
| PFUT | 05/26/2021 | Putnam Sustainable Future ETF | $161,271,018 | $155,978,207 | 32.02 | 4,651 | Fidelity Proxy | Virtu | 0.64% |
| PLDR | 05/26/2021 | Putnam Sustainable Leaders ETF | $341,818,022 | $344,444,355 | 11.26 | 461,038 | Fidelity Proxy | RBC | 0.59% |
| PGRO | 05/26/2021 | Putnam Focused Large Cap Growth ETF | $26,158,181 | $16,176,721 | 10.33 | 25,454 | Fidelity Proxy | RBC | 0.55% |
| PVAL | 05/26/2021 | Putnam Focused Large Cap Value ETF | $149,589,990 | $11,204,819 | 30.57 | 23,099 | Fidelity Proxy | Virtu | 0.55% |
| HFGO | 11/09/2021 | Hartford Large Cap Growth ETF | $78,461,250 | $- | 31.59 | 1,798 | Fidelity Proxy | Citadel | 0.59% |
| SEMI | 03/30/2022 | Columbia Seligman Semiconductor and Technology ETF | $17,214,508 | $885,650 | 29.94 | 3,967 | Fidelity Proxy | Virtu | 0.75% |
| CAPE | 04/05/2022 | DoubleLine Shiller CAPE U.S. Equities ETF | $237,376,320 | $14,912,000 | 17.29 | 61,805 | ActiveShares | Citadel | 0.65% |
| FMCX | 04/25/2022 | FMC Excelsior Focus Equity ETF | $73,038,250 | $(69,300) | 53.86 | 146 | ActiveShares | GTS | 0.70% |
| BYRE | 05/19/2022 | Principal Real Estate Active Opportunities ETF | $5,284,182 | $- | 25.16 | 484 | Fidelity Proxy | Virtu | 0.65% |
| Total/Average | $5,849,982,717 | $771,896,142 | 23.65 | 1,337,805 | 0.61% |
Source: FactSet & NYSE Internal Database and Consolidated Tape Statistics as of 2/17/2023
*Simple average
JANUARY ACTIVE ETF LAUNCHES
| Ticker | Name | Issuer | Launch Date | Asset Class | AUM |
|---|---|---|---|---|---|
| GCAD | Gabelli Commercial Aerospace & Defense ETF | Gabelli | 01/03/2023 | Equity | $3,516,791 |
| WCEO | Hypatia Women CEO ETF | Hypatia Capital | 01/09/2023 | Equity | $1,379,825 |
| ENAV | Mohr Sector Navigator ETF | Mohr Funds | 01/11/2023 | Equity | $19,778,698 |
| ZSB | USCF Sustainable Battery Metals Strategy Fund | USCF | 01/11/2023 | Commodities | $2,544,500 |
| MEMX | Matthews Emerging Markets ex China Active ETF | Matthews Asia | 01/11/2023 | Equity | $3,090,180 |
| CLOA | BlackRock AAA CLO ETF | iShares | 01/12/2023 | Fixed Income | $30,693,000 |
| PRFD | PIMCO Preferred & Capital Securities Active ETF | PIMCO | 01/19/2023 | Fixed Income | $50,060,000 |
| PCRB | Putnam ESG Core Bond ETF | Putnam | 01/20/2023 | Fixed Income | $438,458,710 |
| PHYD | Putnam ESG High Yield ETF | Putnam | 01/20/2023 | Fixed Income | $125,995,500 |
| PULT | Putnam ESG Ultra Short ETF | Putnam | 01/20/2023 | Fixed Income | $2,500,000 |
| PPEM | Putnam PanAgora ESG Emerging Markets Equity ETF | Putnam | 01/20/2023 | Equity | $2,500,000 |
| PPIE | Putnam PanAgora ESG International Equity ETF | Putnam | 01/20/2023 | Equity | $128,692,275 |
| GDEF | Goldman Sachs Defensive Equity ETF | GSAM | 01/23/2023 | Equity | $6,573,610 |
| GJAN | FT Cboe Vest U.S. Equity Moderate Buffer ETF - January | FT Cboe Vest | 01/23/2023 | Equity | $128,688,061 |
| CLOZ | Panagram BBB-B CLO ETF | Panagram | 01/24/2023 | Fixed Income | $63,800,000 |
| TPMN | Timothy Plan Market Neutral ETF | Timothy Plan | 01/25/2023 | Alternatives | $58,922,136 |
| FTBD | Fidelity Tactical Bond ETF | Fidelity | 01/26/2023 | Fixed Income | $14,802,300 |
| MEDX | Horizon Kinetics Medical ETF | Horizon Kinetics | 01/30/2023 | Equity | $19,053,110 |
| SPAQ | Horizon Kinetics SPAC Active ETF | Horizon Kinetics | 01/30/2023 | Equity | $7,369,503 |
| Total - 19 New ETFs | $1,108,418,199 |
Source: Factset as of 2/17/2023
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