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Successful ETF Launches of First Quarter

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The U.S. ETF industry is now valued at $3.78 trillion, with about 2,256 funds from 140 sponsors, per xtf.com. Further, a considerable number of ETFs are in the pipeline, pointing to growing investor interest for exchange-traded products in this market.

The current year appears to ride this solid momentum, with about 55 new funds already on board. January witnessed the maximum launches of 27 funds. The impetus slackened a bit in February (nine issuances) to again gather steam in March. However, investors should note that close to 40 funds were delisted.  

Year to date, total number of ETFs grew 0.7% while ETF assets have jumped 11%. There were about $43.97 billion of asset inflows in the quarter so far, according to data provided by xtf.com (read: Top ETF Stories of Q1).

The credit goes mainly to a wide range of innovative and fresh-themed products in the space, which hold investors’ attention despite the peaks and troughs of the market.

Below are five ETFs launched in first quarter that have amassed a decent asset base within days of hitting the market.

Xtrackers MSCI USA ESG Leaders Equity ETF (USSG - Free Report) – $866.8 million – Launched on Mar 7

The underlying MSCI USA ESG Leaders Index is a capitalization weighted index that provides exposure to companies with high Environmental, Social and Governance performance relative to their sector peers. It charges 10 basis points (bps) in fees.

Virtus Real Asset Income ETF (VRAI - Free Report) – $191.6 million – Launched on Feb 7

The underlying Indxx Real Asset Income Index comprises income-producing, U.S. equity securities across three real asset categories — real estate, natural resources and infrastructure. Each real asset category includes the top 30 dividend growers systematically picked from the 60 highest dividend-paying securities in the category. It charges 55 bps in fees.

Virtus Private Credit ETF (VPC - Free Report) – $161.8 million – Launched on Feb 7

The underlying Indxx Private Credit Index seeks to track the performance of U.S.-listed, registered closed-end investment companies that have elected to be regulated as BDCs as well as U.S.-listed, non-BDC registered closed-end funds that provide significant exposure to private credit.

Innovator S&P 500 Power Buffer ETF January (PJAN - Free Report) – $92.0 million – Launched on Jan 2

The fund is actively-managed and does not track a benchmark. The fund looks to track the return of the S&P 500 Price Return Index, up to a predetermined cap, while buffering investors against the first 15% of losses over the outcome period. The fund charges 79 bps in fees.

 Aware Ultra-Short Duration Enhanced Income ETF – $88.0 million – Launched on Jan 29

This actively-managed fund seeks to maximize current income targeting a yield of 0.75% to 1.00% over the three-month Treasury Bills while maintaining preservation of capital and daily liquidity.

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