Fear and Loathing in Hollywood, Florida

INDEX PERFORMANCE DATA 

1/26/2018        1 Wk1 Mo3 Mo6 Mo1 YrQTDYTDSince
Inception 
Toroso ETF Industry Index0.98%8.73%15.77%22.60%8.49%8.49%36.65%
S&P Financial Select Sector Index2.19%7.96%13.17%21.70%29.46%8.14%8.14%28.87%

FEAR AND LOATHING IN HOLLYWOOD, FLORIDA

Last week, the Toroso Team attended the #InsideETFs conference with 2400 other ETF ecosystem members to learn, research, and celebrate the growth of ETFs. Serena WilliamsQuincy JonesThe Daily Show, thousands of new faces, and an ETF ice-cream truck were some of the more interesting surprises.

We also met many staples like Dave NadigTom LydonEric BalchunasChristian MagoonPhil BakNate GeraciJan Van EckBruno Del AmaJim WiadntMichael KrauseArlene ReyesHerb BlankWes GrayDan WeiskopfTrevor HunnicutSarah PonczekTravis BriggsBill Carey, Chuck MartinBill DeRoche ,Sylvia JablonskyRob D. WilliamsArthur CherchesLarry MedinTony WenzelEthan PowellBryce TilleryTom HardinKevin Carter and a whole host of other familiar ETF Nerds.

The fear and loathing connects to somber feeling for the hedge fund industry as depicted in this slide from Bloomberg:

These assets are at risk of being democratized, but Hedge Fund losses are likely an ETF gain due to the client alignment growth factors we have covered in previous TETFindex updates.

There was also some politically charged ETFs like MAGA, MJX, DEMS, GOP and TAXR which were discussed in many panels.

The first panel was especially strange for us due the role reversal.

Our PR agent Chris Sullivan kicked off the discussion of ETFs in the media while we observed and encouraged him from the audience. He did manage to plug us at least once, which we appreciate.

Bitcoin ETFs, as usual, were a hot topic, but seem far away at this point. This led, in turn, to Blockchain ETFs. Currently, there are three, none of which were permitted to use Blockchain in the name:

TICKER        NAMEAUM# OF HOLDINGSACTIVE OR PASSIVE 
BLOKAmplify Transformational Data Shrg ETF$174,714,88849Active
BLCNReality Shares Nasdaq NexGen Economy ETF$87,369,32462Passive
LEGRFirst Trust Indxx Innovative Transaction & Process ETF$3,040,64467Passive

Toroso is the active subadvisor of BLOK.

In addition, we used #InsideETFs to launch our ETF Think Tank.  This aims to be a community for Advisors and users of ETFs to access unique ETF research software, communicate with other ETF allocators, utilize our curated library of ETF research, and connect with innovative ETF issuers.

To learn more about joining the ETF Think Tank for free, contact Oscar Biondolillo at obiondolillo@torosoinv.com (and you will receive a free ETF Nerd pin, too).

One of the final presentations on the growth of the emerging market internet and consumer included a very clear challenge with a $10,000 prize.

In short, Kevin Carter, the founder of EMQQ, is offering the prize to anyone that can find a subset of securities that have had greater growth potential than EMQQ.

Obviously, there are some stipulations so contact us or Kevin Carter to learn more.

Another new surprise this year was how the ecosystem has grown. TETFindex includes ETF Sponsors, Index Providers, Exchanges, Liquidity Firms, and ETF services providers.  All were represented at the conference, but this year we saw some new booths that are more tangential to the industry, such as JobsinETFs, focused on career placement and a booth for a company that makes customized gift baskets for clients.

SO THE 13 KEY TAKEAWAYS:

  1. ETFs are growing.
  2. Smart Beta has become mainstream.
  3. Themes are hot, even State street is in, through a fabulous partnership with Kensho.
  4. A Bitcoin ETF is a long way away.
  5. Marijuana ETFs are hot topic, but not without controversy.
  6. Low cost Traditional Beta is still the juggernaut of growth.
  7. 3 Blockchain ETFs, only one is Active.
  8. Everybody loves Robots.
  9. ETFs are becoming more relevant outside of the US.
  10. ETFthinktank.com is live, so come check it out!
  11. Hedge funds are at risk from ETF cannibalization.
  12. #InsideETFs was trending on Twitter.
  13. ETFs are GROWING, and the TETFindex is the way to follow that growth.

ETF LAUNCHES 

BMO REX MicroS FANG In3X Inverse Lev ETNFNGD1/23/2018
BMO REX MicroS FANG In3X Lev ETNFNGU1/23/2018
GraniteShares Platinum TrustPLTM1/22/2018

ETF LAUNCH OF THE WEEK

FNGD, for those of you who want to take a contrarian position on one of the hottest trades, our friends at REX launched a leveraged ETF to short FANG stocks.

TETF INDEX PERFORMANCE Vs. LEADING FINANCIAL INDEXES

TETF INDEX UNDERLYING TOP/BOTTOM 10 HOLDINGS PERFORMANCE

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25 Years of ETFs

25 Years of ETFs

As of December 31, 2017

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