
ETF Stats – Food for Thought
newETFs.io‘s goal is to help (but not limited to) investors diversify, find alpha, and help advisors with their fiduciary duty by exposing to them “the other 10%” of Exchange Traded Funds (ETFs). This goal is a challenge considering that 90% of ETF assets under management (AUM) are owned by five ETF issuing companies. If you add 15 more ETF issuing companies to the list it will make up 98% of ETF AUM owned by 20 companies; keep in mind there are 123 ETF companies.
Here’s the breakout:
ETF Tier Category | Aum$ | Aum% |
Top 2 | $ 2,564,455,500,000 | 65% |
Top 5 | $ 3,564,739,690,000 | 90% |
Top 10 | $ 3,771,919,400,000 | 95% |
Top 20 | $ 3,889,287,860,000 | 98% |
The Rest | $ 75,399,840,000 | 2% |
Total | $ 3,964,687,700,000 | 100% |
Let this data sink in for bit…only $75.4 Billion of the $3.964 Trillion of ETF AUM is managed by “The Rest”. Said differently 20 companies in the US manage $3.889 Trillion! Depending on what type of person you are reading this post: Individual Investor, Advisor, ETF Issuer, or someone considering making an ETF. I can only presume you all will have a list of different types of questions and/or concerns.
newETFs.io plans to publish this analysis on a monthly basis with the hopes of bringing to light the “the other 10%”. Stay tuned and visit back.
If you’re considering making an ETF reach out to us at info@newetfs.io. We have consultants to help you navigate through the rough waters of growing AUM in your ETF solution. We might be able to help.