ETF Stats For September 2016: Big Month For Active Management

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Includes: BOTZ, BSCQ, BSJO, DB, DULL, DWAC, FDVV, FINX, GBIL, IBDR, JPHF, SHNY, SMMV, SNSR
by: Ron Rowland

Forty-one new ETFs and ETNs came to market in September, the largest quantity since the 48 launches of February 2012. Twenty-three died, but only 22 of them were "buried" thanks to Deutsche Bank's (NYSE:DB) decision not to liquidate one of its delisted products. The net increase of 18 puts the product count at 1,932 (1,744 ETFs and 188 ETNs).

A dozen actively managed ETFs were introduced and only one closed, pushing the actively managed fund count to 159. This is the second-highest monthly launch count for the actively managed subset and is notable for its diversity of sponsors. JPMorgan, AdvisorShares, Elkhorn, Franklin Liberty, PowerShares, First Trust, ProShares, and TrimTabs introduced new actively managed offerings.

Industry assets grew by 0.7% to $2.41 trillion, mostly the result of $14.8 billion of inflows. Stocks and bonds were relatively flat for the month, so market gains accounted for only $2.8 billion of asset growth. Actively managed ETFs saw inflows of $261 million and now have total assets of $27.5 billion, a nice 19.8% increase since the beginning of the year.

September turned out to be a bad month for Deutsche Bank shareholders and owners of its ETNs. The bank apparently has severe capital constraints, its ongoing viability has been called into question, and the German government is on record stating that it would not extend a lifeline. The fate of individual companies is normally not of concern to us, but when that company is an issuer of exchange-traded notes ("ETNs"), it deserves our attention.

Unlike ETFs and mutual funds that are fully collateralized separate entities and not affected by a sponsor's bankruptcy, ETNs are unsecured debt obligations of the issuer. Therefore, the failure of an ETN sponsor can reduce the value of its ETNs to rubble. DB voluntarily redeemed eight of its ETNs after the market closed on September 19. Additionally, the NYSE had forced the delisting of another one, the DB Base Metals Long ETN (NYSEARCA:BDG), on the preceding Friday. However, DB did not redeem/liquidate it. Instead, owners of BDG will have to fend for themselves in the over-the-counter market when trying to get their money back from their BDG investment.

All 20 DB ETNs available to U.S. investors (19 listed and one not listed) are broken products without a functioning creation mechanism, and all carry the heightened credit risk of DB's current financial state. Additionally, the market exposure provided by many of these ETNs can be replaced with better products from other sponsors. DB's problems do not need to be your problems. For more information, please refer to Dump Deutsche Bank ETNs Now.

The Global Industry Classification Standards ("GICS") elevated Real Estate to sector status in September, which caused some industry disruptions during the month. Three ETFs in the Financials sector track indexes that changed due to the transition of equity REITs from Financials to the new Real Estate sector, and a fourth ETF is closing up shop because of this change.

Vanguard Financials ETF (NYSEARCA:VFH) sold all of its REITs at the August 31 close to coincide with the GICS change. Shareholders of VFH lost the approximately 20% exposure they had to REITs and now have increased exposure to banks and insurance companies. These investors will have to generate specific buy and sell orders if they want their asset allocations to resemble August values.

Shareholders of the Financials Select Sector SPDR (NYSEARCA:XLF) and Guggenheim S&P 500 Equal Weight Financials (NYSEARCA:RYF) received special stock dividends consisting of shares of real estate ETFs. Their shareholders did not have to take any action to keep their asset allocations constant. However, the spin-offs caused some anomalies when calculating industry flows for the month.

For XLF, the spin-off created a distribution of $4.44 per share in the form of 0.139 shares of the Real Estate Select Sector SPDR (NYSEARCA:XLRE). The $2.92 billion leaving XLF was recorded as dividend, which reduced its share price, did not affect share count, and was therefore not considered an outflow. However, the resulting $2.92 billion of assets coming into XLRE required that new shares be created and was counted as inflow. Industrywide asset flows are typically calculated by adding up the net flows from all products. In this case, the spin-offs resulted in no actual change in assets at the industry level. Therefore, the industrywide tally requires a downward adjustment from $17.77 billion to $14.81 billion to offset the $2.92 billion inflow to XLRE that came from another ETF and was not actual industry growth.

A similar situation was caused by Guggenheim's spin-off from RYF, but it only amounted to around $45 million, putting it in the rounding error of the above discussion. The fourth ETF affected by the GICS change is the Financial Services Select Sector SPDR (NYSEARCA:XLFS). It was launched a year ago in anticipation of the GICS change scheduled for this year. As such, it was an alternate version of XLF with the equity REITs already stripped out. Today, the holdings and allocations of XLF and XLFS are identical. It would make sense to merge the smaller XLFS into XLF, but State Street has decided on a different course of action. The $140 million XLFS is slated to be closed and liquidated after its last day of trading on November 14.

September 2016 Month End ETFs ETNs Total
Currently Listed U.S. 1,744 188 1,932
Listed as of 12/31/2015 1,644 201 1,845
New Introductions for Month 41 0 41
Delistings/Closures for Month 13 10 23
Net Change for Month +28 -10 +18
New Introductions 6 Months 137 7 144
New Introductions YTD 178 13 191
Delistings/Closures YTD 78 26 104
Net Change YTD +100 -13 +87
Assets Under Management $2,387 B $23.9 B $2,411 B
% Change in Assets for Month +0.8% -1.0% +0.7%
% Change in Assets YTD +13.8% +11.3% +1380%
Qty AUM > $10 Billion 55 0 55
Qty AUM > $1 Billion 272 5 277
Qty AUM > $100 Million 830 37 867
% with AUM > $100 Million 47.6% 19.7% 44.9%
AUM Flows for Month +$15.26 B -$0.45 B +$14.81 B
AUM Flows YTD +$145.36 B +$1.83 B +$162.45 B
Monthly $ Volume $1,648 B $90.1 B $1,738 B
% Change in Monthly $ Volume +25.3% +23.6% +25.2%
Avg Daily $ Volume > $1 Billion 11 1 12
Avg Daily $ Volume > $100 Million 96 5 101
Avg Daily $ Volume > $10 Million 300 11 311
Actively Managed ETF Count (w/ change) 159 +11 mth +22 ytd
Actively Managed AUM $27.5 B +1.6% mth +19.8% ytd
Click to enlarge

Data sources: Daily prices and volume of individual ETPs from Norgate Premium Data. Fund counts and all other information compiled by Invest With An Edge.

New products launched in September (sorted by launch date):

  1. Direxion Daily Silver Miners Index Bear 2x Shares (NYSEARCA:DULL), launched 9/8/16, seeks daily investment results of 200% of the inverse (or opposite) of the performance of the Solactive Global Silver Miners Index, which measures broad-based equity market performance of companies involved in the silver mining industry. The Index includes a minimum of 20 and a maximum of 40 stocks of U.S. and foreign companies active in exploration, mining, and/or refining of silver. Its expense ratio is capped at 0.80% (DULL overview).
  2. Direxion Daily Silver Miners Index Bull 2x Shares (NYSEARCA:SHNY), launched 9/8/16, seeks daily investment results of 200% of the performance of the Solactive Global Silver Miners Index, which measures broad-based equity market performance of companies involved in the silver mining industry. The Index includes a minimum of 20 and a maximum of 40 stocks of U.S. and foreign companies active in exploration, mining, and/or refining of silver. Its expense ratio is capped at 0.80% (SHNY overview).
  3. Goldman Sachs TreasuryAccess 0-1 Year ETF (NYSEARCA:GBIL), launched 9/8/16, seeks to provide investment results that closely correspond to the performance of the Citi US Treasury 0-1 Year Composite Select Index with an expense ratio of 0.14% (GBIL overview).
  4. iShares Edge MSCI Min Vol USA Small-Cap ETF (BATS:SMMV), launched 9/9/16, seeks to track the investment results of an index composed of small-capitalization U.S. equities that, in the aggregate, have lower volatility characteristics relative to the small-capitalization U.S. equity market. SMMV comes with an expense ratio of 0.20% (SMMV overview).
  5. Global X FinTech Thematic ETF (NASDAQ:FINX), launched 9/13/16, seeks to invest in global companies from developed markets that are on the leading edge of the emerging financial technology ("FinTech") sector, which encompasses a range of innovations helping to transform established industries such as insurance, investing, fundraising, and third-party lending through unique mobile and digital solutions. FINX has an expense ratio of 0.68% (FINX overview).
  6. Global X Internet of Things Thematic ETF (NASDAQ:SNSR), launched 9/13/16, seeks to invest in companies that will potentially benefit from the broader adoption of the Internet of Things. This includes the development and manufacturing of semiconductors and sensors, integrated products and solutions, and applications serving smart grids, smart homes, connected cars, and the industrial internet. This new theme-based ETF has an expense ratio of 0.68% (SNSR overview).
  7. Global X Robotics & Artificial Intelligence Thematic ETF (NASDAQ:BOTZ), launched 9/13/16, seeks to invest in companies that should benefit from increased adoption and utilization of robotics and artificial intelligence, including those involved with industrial robotics, automation, nonindustrial robots, and autonomous vehicles. It carries an expense ratio of 0.68% (BOTZ overview).
  8. Guggenheim BulletShares 2024 High Yield Corporate Bond ETF (NYSEARCA:BSJO), launched 9/14/16, seeks investment results that correspond to a U.S. high-yield corporate bond index with a target maturity of 2024. As such, the ETF will terminate and liquidate on or about December 31, 2024. It has an expense ratio of 0.42% (BSJO overview).
  9. Guggenheim BulletShares 2026 Corporate Bond ETF (NYSEARCA:BSCQ), launched 9/14/16, seeks investment results that correspond to an investment-grade corporate bond index with a target maturity of 2026. The ETF has a designated maturity and will terminate on or about December 31, 2026. BSCQ carries an expense ratio of 0.24% (BSCQ overview).
  10. JPMorgan Diversified Alternatives ETF (NYSEARCA:JPHF), launched 9/14/16, is an actively managed ETF that employs a rules-based, bottom-up approach to build a diversified portfolio of hedge-fund strategies in a cost-effective manner. It allocates across a variety of strategies commonly employed by hedge funds, including equity long/short, event driven, and global macro. However, it does not invest in hedge funds but implements its strategy through direct ownership of securities. The expense ratio is capped at 0.85% (JPHF overview).
  11. Fidelity Core Dividend ETF (NYSEARCA:FDVV), launched 9/15/16, seeks to track the Fidelity Core Dividend Index, which is designed to reflect the performance of stocks of U.S. large- and mid-capitalization dividend-paying companies that are expected to continue to pay and grow their dividends. The new dividend growth ETF has an expense ratio of 0.29% (FDVV overview).
  12. Fidelity Dividend ETF for Rising Rates (NYSEARCA:FDRR), launched 9/15/16, seeks to track the Fidelity Dividend Index for Rising Rates. The Index reflects the performance of developed market stocks and ADRs of large- and mid-capitalization dividend-paying companies that are expected to continue to pay and grow their dividends and also have a positive correlation of returns to increasing 10-year U.S. Treasury yields. Its expense ratio is 0.29% (FDRR overview).
  13. Fidelity Low Volatility Factor ETF (NYSEARCA:FDLO), launched 9/15/16, intends to track the Fidelity U.S. Low Volatility Factor Index, which is designed to reflect the performance of stocks of large- and mid-capitalization U.S. companies with lower volatility than the broader market. FDLO has an expense ratio of 0.29% (FDLO overview).
  14. Fidelity Momentum Factor ETF (NYSEARCA:FDMO), launched 9/15/16, will track the Fidelity U.S. Momentum Factor Index, which is designed to reflect the performance of stocks of large- and mid-capitalization U.S. companies that exhibit positive momentum signals. This new single-factor ETF has an expense ratio of 0.29% (FDMO overview).
  15. Fidelity Quality Factor ETF (NYSEARCA:FQAL), launched 9/15/16, seeks to track the Fidelity U.S. Quality Factor Index, which is designed to reflect the performance of stocks of large- and mid-capitalization U.S. companies with a higher quality profile than the broader market. It has an expense ratio of 0.29% (FQAL overview).
  16. Fidelity Value Factor ETF (NYSEARCA:FVAL), launched 9/15/16, intends to tracks the Fidelity U.S. Value Factor Index, which is designed to reflect the performance of stocks of large- and mid-capitalization U.S. companies that have attractive valuations. FVAL comes with an expense ratio of 0.29% (FVAL overview).
  17. iShares iBonds Dec 2026 Term Corporate ETF (NYSEARCA:IBDR), launched 9/15/16, seeks to track the investment results of an index composed of U.S. dollar-denominated, investment-grade corporate bonds maturing in 2026. The ETF will mature and liquidate in December 2026 and has an expense ratio of 0.10% (IBDR overview).
  18. JPMorgan Disciplined High Yield ETF (BATS:JPHY), launched 9/15/16, is an actively managed ETF seeking to provide a high level of income with capital appreciation being a secondary objective. The fund holds a diversified portfolio of high-yield, U.S. dollar-denominated debt securities from both domestic and foreign (developed and emerging) issuers. It aims to address perceived deficiencies in existing passive high-yield bond ETFs by applying rules-based screens to manage credit and liquidity risk. JPHY has its expense ratio capped at 0.40% (JPHY overview).
  19. NuShares Enhanced Yield U.S. Aggregate Bond ETF (NYSE:NUAG), launched 9/15/16, seeks to track the BofA Merrill Lynch Enhanced Yield US Broad Bond Index. Rather than weighting by capitalization, it uses a rules-based methodology that allocates higher weights to securities and sectors that have the potential for higher yield while maintaining comparable risk. This new smart-beta bond ETF has an expense ratio of 0.20% (NUAG overview).
  20. Recon Capital USA Managed Risk ETF (USMR), launched 9/20/16, tracks an index designed to provide exposure to the broad U.S. market while seeking to reduce downside risk and capture meaningful gains in rising markets. The ETF focuses on managing systematic risk exposures such as value, growth, momentum, exchange-rate sensitivity, leverage, and liquidity. From the largest 900 companies in the U.S., the fund uses Axioma's factor risk model and optimizer that seeks to pick the best risk-adjusted stocks given the current market environment. The ETF rebalances monthly and has its expense ratio capped at 0.30% (USMR overview).
  21. VanEck Vectors AMT-Free 12-17 Year Municipal Index ETF (BATS:ITML), launched 9/20/16, seeks to match the Bloomberg Barclays AMT-Free 12-17 Year Intermediate Continuous Municipal Index, which is intended to track the overall performance of the U.S. dollar denominated intermediate-term tax-exempt bond market with final maturities from 12-17 years. ITML has an expense ratio of 0.24% (ITML overview).
  22. VanEck Vectors AMT-Free 6-8 Year Municipal Index ETF (BATS:ITMS), launched 9/20/16, seeks to match the Bloomberg Barclays AMT-Free 6-8 Year Intermediate Continuous Municipal Index, which is intended to track the overall performance of the U.S. dollar-denominated intermediate-term tax-exempt bond market with final maturities from 6-8 years. The ETF comes with an expense ratio of 0.24% (ITMS overview).
  23. AdvisorShares Focused Equity ETF (NYSEARCA:CWS), launched 9/21/16, is an actively managed ETF that seeks long-term capital appreciation by investing primarily in a focused group of U.S.-listed equity securities that the portfolio manager believes have favorable fundamental attributes. The manager uses a variety of methods for security selection, including consistency of financial results, earnings quality, strong sales, earnings growth, steady increases in earnings and dividends, unique opportunity for growth, and out-of-favor stocks believed to be priced below their intrinsic value. The expense ratio is based on a fulcrum fee arrangement and ranges from 0.65% to 0.85%. It has a nominal rate of 0.75% and a performance adjustment of 0.02% for every 0.25% to 0.50% of over- or underperformance to the S&P 500 over a rolling 12-month period (CWS overview).
  24. Amplify YieldShares Prime 5 Dividend ETF (BATS:PFV), launched 9/21/16, is a fund-of-funds portfolio consisting of the five highest-ranked U.S. dividend ETFs. The underlying Prime 5 U.S. Dividend ETF Index scoring and selection criteria look at high dividend income, low share price volatility, and low expenses. The ETF has its expense ratio capped at 0.49% (PFV overview).
  25. Elkhorn DWA Commodity Rotation ETF (NASDAQ:DWAC), launched 9/21/16, is an actively managed ETF that uses Dorsey Wright & Associates' proprietary momentum-based methodology to select the five commodities with the highest relative strength from a universe of 21 commodities. The portfolio is designed to be a tactical, momentum-based commodity strategy with a modified dynamic roll methodology. It will own commodity futures contracts through a wholly owned subsidiary in the Cayman Islands so that it can issue 1099s instead of K-1 shareholder tax reports. DWAC has an expense ratio of 0.99% (DWAC overview).
  26. Elkhorn Fundamental Commodity Strategy ETF (BATS:RCOM), launched 9/21/16, is an actively managed ETF that seeks to outperform the Dow Jones RAFI Commodity Index through the active management of a short-duration portfolio of liquid, high-quality bonds instead of holding a cash component. The referenced index is an alternative beta strategy that uses price momentum and roll yield to generate alpha. The portfolio is designed to be a fundamental factor-weighted, broad-market commodity strategy with a modified dynamic roll methodology. It carries an expense ratio of 0.75% (RCOM overview).
  27. First Trust Nasdaq Bank ETF (NASDAQ:FTXO), launched 9/21/16, seeks to track the Nasdaq US Smart Banks Index, a modified factor-weighted index. It selects the 30 most liquid eligible bank securities and then ranks those securities based on three factors: Volatility (trailing 12-month price fluctuation), Value (cash flow to price), and Momentum (the 3-, 6-, 9-, and 12-month average price appreciation). FTXO has an expense ratio of 0.60% (FTXO overview).
  28. First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG), launched 9/21/16, seeks to track the Nasdaq US Smart Food & Beverage Index, a modified factor-weighted index. It selects the 30 most liquid eligible food and beverage securities and then ranks those securities based on three factors: Volatility (trailing 12-month price fluctuation), Value (cash flow to price), and Momentum (the 3-, 6-, 9-, and 12-month average price appreciation). The expense ratio is 0.60% (FTXG overview).
  29. First Trust Nasdaq Oil & Gas ETF (NASDAQ:FTXN), launched 9/21/16, seeks to track the Nasdaq US Smart Oil & Gas Index, a modified factor-weighted index. It selects the 50 most liquid eligible oil and gas securities and then ranks those securities based on three factors: Volatility (trailing 12-month price fluctuation), Value (cash flow to price), and Momentum (the 3-, 6-, 9-, and 12-month average price appreciation). It has an expense ratio of 0.60% (FTXN overview).
  30. First Trust Nasdaq Pharmaceuticals ETF (NASDAQ:FTXH), launched 9/21/16, seeks to track the Nasdaq US Smart Pharmaceuticals Index, a modified factor-weighted index. It selects the 30 most liquid eligible pharmaceuticals securities and then ranks those securities based on three factors: Volatility (trailing 12-month price fluctuation), Value (cash flow to price), and Momentum (the 3-, 6-, 9-, and 12-month average price appreciation). FTXH carries an expense ratio of 0.60% (FTXH overview).
  31. First Trust Nasdaq Retail ETF (NASDAQ:FTXD), launched 9/21/16, seeks to track the Nasdaq US Smart Retail Index, a modified factor-weighted index. It selects the 50 most liquid eligible retail securities and then ranks those securities based on three factors: Volatility (trailing 12-month price fluctuation), Value (cash flow to price), and Momentum (the 3-, 6-, 9-, and 12-month average price appreciation). The ETF has an expense ratio of 0.60% (FTXD overview).
  32. First Trust Nasdaq Semiconductor ETF (NASDAQ:FTXL), launched 9/21/16, seeks to track the Nasdaq US Smart Semiconductor Index, a modified factor-weighted index. It selects the 30 most liquid eligible semiconductor securities and then ranks those securities based on three factors: Volatility (trailing 12-month price fluctuation), Value (cash flow to price), and Momentum (the 3-, 6-, 9-, and 12-month average price appreciation). It has an expense ratio of 0.60% (FTXL overview).
  33. First Trust Nasdaq Transportation ETF (NASDAQ:FTXR), launched 9/21/16, seeks to track the Nasdaq US Smart Transportation Index, a modified factor-weighted index. It selects the 30 most liquid eligible transportation securities and then ranks those securities based on three factors: Volatility (trailing 12-month price fluctuation), Value (cash flow to price), and Momentum (the 3-, 6-, 9-, and 12-month average price appreciation). FTXR has an expense ratio of 0.60% (FTXR overview).
  34. Franklin Liberty U.S. Low Volatility ETF (FLLV), launched 9/22/16, is an actively managed ETF seeking capital appreciation with an emphasis on providing lower volatility than the Russell 1000 Index. The fund applies a fundamentally driven "bottom-up" research process to identify stocks that exhibit strong fundamental characteristics, and it screens for stocks with the lowest realized volatility scores relative to their corresponding sectors. The manager incorporates additional risk considerations into the final stock selection process. FLLV has its expense ratio capped at 0.50% (FLLV overview).
  35. PowerShares Variable Rate Investment Grade Portfolio (VRIG), launched 9/22/16, is an actively managed ETF that seeks current income while maintaining low portfolio duration as a primary objective and capital appreciation as a secondary objective. It holds a portfolio of investment-grade, variable-rate instruments that are U.S.-dollar denominated and U.S. issued, including floating-rate U.S. Treasurys, government-sponsored agency mortgage-backed securities, U.S. agency debt, structured securities, and floating-rate investment-grade corporate bonds. Despite its name, the ETF may invest up to 20% of its portfolio in non-investment-grade securities. VRIG has an expense ratio of 0.30% (VRIG overview).
  36. Principal U.S. Small Cap Index ETF (PSC), launched 9/22/16, seeks to track the Nasdaq U.S. Small Cap Select Leaders Index, which is designed to provide exposure to equity securities of U.S. small-capitalization companies that exhibit high degrees of sustainable shareholder yield, pricing power, and momentum. The multifactor ETF carries an expense ratio of 0.38% (PSC overview).
  37. First Trust CEF Income Opportunities ETF (NASDAQ:FCEF), launched 9/28/16, is an actively managed ETF with an objective to provide current income with a secondary emphasis on total return through a portfolio of closed-end funds ("CEFs") that are listed and traded in the United States. It selects holdings from the entire universe of equity and taxable fixed-income CEFs, which are scored on fundamental and performance factors. The proprietary model takes into account more than just yield and discount as the results are combined with a top-down macroeconomic outlook. With a management fee of 0.85% and a 1.65% expense ratio on the underlying holdings, FCEF has a total expense ratio of 2.50% (FCEF overview).
  38. First Trust Municipal CEF Income Opportunity ETF (NASDAQ:MCEF), launched 9/28/16, is an actively managed ETF with an objective to provide current tax-exempt income by investing in a portfolio of closed-end funds ("CEFs") that are listed and traded in the United States. It selects its holdings from the entire universe of municipal CEFs, categorizes them as national, state, or high yield, and then scores them on fundamental and performance factors. The proprietary model takes into account more than just yield and discount as the results are combined with a top-down macroeconomic outlook. With a management fee of 0.75% and a 1.16% expense ratio on the underlying holdings, MCEF sports a total expense ratio of 1.91% (MCEF overview).
  39. ProShares K-1 Free Crude Oil Strategy ETF (BATS:OILK), launched 9/28/16, is an actively managed ETF that seeks to provide total return through the West Texas Intermediate ("WTI") crude-oil futures markets. By investing through a wholly owned Cayman subsidiary, the ETF will be able to issue 1099s instead of K-1 tax statements. The ETF selects between WTI crude-oil futures contracts with the three nearest expiration dates (known as the front-, second-, and third-month contracts) based on analysis of the liquidity and cost of establishing and maintaining such positions. OILK has an expense ratio of 0.65% (OILK overview).
  40. TrimTabs Float Shrink ETF (BATS:TTAC), launched 9/28/16, is an actively managed ETF focused on generating long-term returns that exceed those of the Russell 3000 Index. It uses a quantitative analysis process focused on selecting companies that are both generating free cash flow and reducing their share count. TTAC equal-weights the 100 companies listed on the Russell 3000 Index that best fulfill its investment criteria with an expense ratio of 0.59% (TTAC overview).
  41. AdvisorShares KIM Korea Equity ETF (NYSEARCA:KOR), launched 9/29/16, is an actively managed ETF seeking to provide long-term capital appreciation above that of the MSCI Korea Index and other Korea-focused indexes. Korea Investment Management ("KIM") is the manager, and it buys and holds stocks of companies with attractive valuations that it believes have growth potential, especially in those industries with a differentiated and sustainable growth engine. It uses a "bottom-up" analysis of focusing on corporate fundamental research and a "top-down" analysis of the macro economy and its effect on corporate competitiveness and industry cycles. It seeks to identify investment ideas with large economic cycles as compared to short-term market trends and short-term supply-and-demand dynamics. The ETF's expense ratio is capped at 0.99% (KOR overview).

Product closures in September and last day of listed trading:

  1. iShares iBonds Sep 2016 Term Muni Bond (NYSEARCA:IBME) 9/1/16
  2. AccuShares S&P GSCI Crude Oil Down (NASDAQ:OILD) 9/8/16
  3. AccuShares S&P GSCI Crude Oil Up (OILU) 9/8/16
  4. AccuShares Spot CBOE VIX Down (NASDAQ:VXDN) 9/8/16
  5. AccuShares Spot CBOE VIX Up (NASDAQ:VXUP) 9/8/16
  6. DB Base Metals Long ETN (BDG) 9/16/16
  7. ELEMENTS S&P Commodity Trends Indicator ETN (NYSEARCA:LSC) 9/16/16
  8. DB 3x German Bund Futures ETN (NYSEARCA:BUNT) 9/19/16
  9. DB 3x Inverse Japanese Govt Bond Futures ETN (NYSEARCA:JGBD) 9/19/16
  10. DB 3x Japanese Govt Bond Futures ETN (JGNT) 9/19/16
  11. DB 3x Long 25+ Treasury Bond ETN (NYSEARCA:LBND) 9/19/16
  12. DB 3x Short 25+ Treasury Bond ETN (NYSEARCA:SBND) 9/19/16
  13. DB German Bund Futures ETN (NYSEARCA:BUNL) 9/19/16
  14. DB Inverse Japanese Govt Bond Futures ETN (NYSEARCA:JGBS) 9/19/16
  15. DB Japanese Govt Bond Futures ETN (NYSEARCA:JGBL) 9/19/16
  16. Guggenheim Emerging Markets Real Estate (NYSEARCA:EMRE) 9/20/16
  17. WisdomTree Coal Fund (NYSEARCA:TONS) 9/22/16
  18. WisdomTree Commodity Country Equity (NYSEARCA:CCXE) 9/22/16
  19. WisdomTree Commodity Currency Strategy (NYSEARCA:CCX) 9/22/16
  20. WisdomTree Global ex-U.S. Utility (NYSEARCA:DBU) 9/22/16
  21. WisdomTree Global Natural Resources (NYSEARCA:GNAT) 9/22/16
  22. WisdomTree Japan Interest Rate Strategy (NASDAQ:JGBB) 9/22/16
  23. CrowdInvest Wisdom (NYSEARCA:WIZE) 9/27/16

Product changes in September:

  1. The Global Industry Classification Standard ("GICS") system removed REITs from the Financials sector and reclassified the group as the 11th sector named Real Estate. Effective after the market close on August 31, with some index providers implementing the change on September 16.
  2. Vanguard Financials ETF (VFH) sold all of its affected REIT holdings after the market close on August 31 and increased its exposure to the stocks remaining in the MSCI US IMI Financials 25/50 Index. Our correlation analysis suggests that these transactions were completed by September 2.
  3. AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF (NYSEARCA:AADR) changed its subadvisor on September 1, becoming the AdvisorShares Dorsey Wright ADR ETF (AADR).
  4. Global X MSCI Nigeria (NYSEARCA:NGE) became a partially broken product on September 2 when Global X limited creations to 100,000 shares per day. Without a fully functional creation mechanism, the ETF could trade at a premium to its net asset value.
  5. Amplify ETFs announced on September 7 that it had acquired YieldShares.
  6. The Financials Select Sector SPDR spun-off its REIT holdings as a special stock-dividend worth $4.44356, consisting of an in-kind distribution of 0.139146 shares of the Real Estate Select Sector SPDR effective 9/19/16.
  7. The Guggenheim S&P 500 Equal Weight Financials spun-off its REIT holdings as a special stock-dividend worth $13.40, consisting of an in-kind distribution of 0.5 shares of the Guggenheim S&P 500 Equal Weight Real Estate (NYSEARCA:EWRE) effective 9/19/16.

Announced product changes for coming months:

  1. WisdomTree Commodity Services (NYSEARCA:GCC) will temporarily suspend the ability of Authorized Participants to purchase creation baskets effective October 4.
  2. Direxion will close and liquidate Direxion Daily FTSE Developed Markets Bull 1.25x Shares (NYSEARCA:LLDM), Direxion Daily FTSE Emerging Markets Bull 1.25x Shares (NYSEARCA:LLEM), and Direxion Daily S&P 500 Volatility Response Shares (NYSEARCA:VSPY), with October 10 being their last day of listed trading.
  3. VanEck Vectors Gulf States (NYSEARCA:MES) and VanEck Vectors Indonesia Small-Cap (NYSEARCA:IDXJ) will close and liquidate, with October 10 being their last day of listed trading.
  4. State Street will liquidate and close five ETFs, with November 14 being the last day of listed trading for Financial Services Select Sector SPDR, SPDR MSCI International Real Estate Currency Hedged (NYSEARCA:HREX), SPDR MSCI Mexico StrategicFactors (NYSEARCA:QMEX), SPDR MSCI South Korea StrategicFactors (NYSEARCA:QKOR), and SPDR MSCI Taiwan StrategicFactors (NYSEARCA:QTWN).

Previous monthly ETF statistics reports are available here.

Disclosure: Author has no positions in any of the securities, companies, or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) is received from, or on behalf of, any of the companies or ETF sponsors mentioned.