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Most Successful ETF Launches of Second Quarter

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The U.S. ETF industry is now valued at $4.29 trillion, with about 2,338 funds from 154 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 136 new funds already on board. The first quarter was rather downbeat with 48 launches. The impetus picked up steam in the second quarter with April and May rolling out 27 funds each while June already saw the entrees of 34 ETFs. In total, 88 funds have already been launched in Q2.

Year to date, total number of ETFs grew 0.6% while ETF assets have fell 2.7%. There have been 18.2% decline in ETNs which led to a 0.7% year-to-date decline in number of ETPs. Overall asset base of the ETPs fell 2.9% to $4.29 trillion.

Still the momentum of ETF launches has been pretty sturdy in the second quarter. 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 a few ETFs launched in second quarter that have amassed a decent asset base within days of hitting the market.

Direxion Daily Gold Miners Index Bull 2X Shares (NUGT - Free Report) – $1.02 billion – Launched on Apr 1

The fund gives 200% of the performance of the NYSE Arca Gold Miners Index. The underlying NYSE Arca Gold Miners Index is comprised of publicly traded companies that operate globally in both developed and emerging markets, and are involved primarily in the mining for gold and silver. The expense ratio of the fund is 1.17% annually (read: Buy ETFs & Stocks from Top-Ranked Gold Mining Industry).

Notably, the fund is not absolutely new. Due to the spike in market volatility amid coronavirus outbreak, Direxion reduced the daily leverage exposure from 3x to 2x from the beginning of the second quarter.

iShares 0-3 Month Treasury Bond ETF (SGOV - Free Report) – $775.1 million – Launched on May 26

The underlying ICE 0-3 Month US Treasury Securities Index comprises of U.S. Treasury bonds with remaining maturities less than or equal to three months. It charges 7 bps in fees (net).

Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG - Free Report) – $617.1 million – Launched on Apr 1

The Direxion Daily Junior Gold Miners Index Bull 2x Shares seek daily investment results, before fees and expenses, of 200% of the performance of the MVIS Global Junior Gold Miners Index. This fund also underwent the reduction of leverage exposure.

Direxion Daily SP Oil Gas Exp. Prod. Bull 2X Shares (GUSH - Free Report) – $423.0 million – Launched on Apr 1

The Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2x Shares seek daily investment results, before fees and expenses, of 200% of the performance of the S&P Oil & Gas Exploration & Production Select Industry Index. The expense ratio of the fund is 1.04%. This is yet another fund that has seen reduced leverage exposure in the quarter.

Goldman Sachs MarketBeta International Equity ETF (GSID - Free Report) – $226.1 million – Launched on May 12

The underlying Solactive GBS Developed Markets ex North America Large & Mid Cap Index consists of equity securities of large and mid-capitalization issuers covering approximately the largest 85% of the free-float market capitalization in developed markets excluding North America. Europe-ex UK makes up about 47.2% of the fund while Japan takes about 26.5% of the portfolio. It charges 20 bps in fees (net) (read: 5 International Equity ETFs That Trumped S&P 500 in 1H of 2020).

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