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By Jim Wiandt

As the first follow-up to my popular tabulation of ETF fund revenues, I offer you a view from the bottom.

To summarize my original "ETF Geeks Dream Table II" blog, here are the key points I came out with. Again, I should point out that this is just a blog and it's just a little rough, but right in the ballpark. Some of the expense ratios and assets are a bit off, so we're scrubbing that now and I'll be coming out with some really fun industry analysis using our scrubbed and fully accurate database.

Here is a summary from the original blog:

  • There are 664 ETFs in our database
  • The equal-weighted average expense ratio was 57 basis points
  • The median DOLLAR-Weighted Expense ratio was 35.4995 bps
  • Sorting the 603 funds we actually have clean data for, total assets are $560 billion
  • In that universe, ETF industry revenues come out to $1.99 BILLION

I then proceeded to list out the top 50 ETFs sorted by revenue per fund. As a refresher, here are those with revenues per fund of $25 million or more per year):

Fund Name

Ticker

Exp Ratio

Assets ($MM)

Revenue Per Fund

iShares MSCI Emerg Mkts

EEM

0.74

26,031

192,629,400

iShares MSCI EAFE

EFA

0.35

46,850

163,975,000

streetTRACKS Gold Shares

GLD

0.40

19,967

79,866,400

SPDRs (S&P 500)

SPY

0.10

66,487

66,486,500

iShares Brazil

EWZ

0.74

7,522

55,662,800

iShares Japan

EWJ

0.57

8,162

46,522,260

iShares FTSE/Xinhua China

FXI

0.74

6,156

45,550,700

PowerShares QQQQ

QQQQ

0.20

16,422

32,843,600

ProShares UltraShort S&P 500

SDS

0.95

2,923

27,763,750

iShares R1000 Growth

IWF

0.20

13,211

26,421,400

iPath DJ-AIG Commodity

DJP

0.75

3,348

25,109,250

Today - we'll expand on this theme and have a little more fun. As you may be aware, it's not all milk and honey in the ETF business. Those lofty $25 million in revenue funds at the top are a very long way from what the bottom 50 ETFs look like. Indeed, the 50th ranked ETF in terms of smallest revenue per fund does not even reach 25 THOUSAND dollars in annual revenue per fund. Here's that bottom list:

Name

Ticker

Exp Ratio

Assets

Revenues Per ETF

Ameristock/Ryan 2 Year U.S. Treasury ETF

GKB

0.15

2.6

3,900

Ameristock/Ryan 1 Year U.S. Treasury ETF

GKA

0.15

2.6

3,900

Ameristock/Ryan 5 Year U.S. Treasury ETF

GKC

0.15

2.7

4,050

Ameristock/Ryan 10 Year U.S. Treasury ETF

GKD

0.15

2.7

4,050

Ameristock/Ryan 20 Year U.S. Treasury ETF

GKE

0.15

2.7

4,050

FocusShares ISE-CCM Homeland Security

MYP

0.60

1.1

6,600

First Trust S&P REIT

FRI

0.50

1.5

7,500

First Trust Fincls AlpDEX

FXO

0.70

1.5

10,500

First Trust ConDsc AlpDEX

FXD

0.70

1.6

11,200

First Trust Util AlpDEX

FXU

0.70

1.6

11,200

Claymore/Morningstar Services

MZO

0.40

3.2

12,800

Claymore/Morningstar Information

MZN

0.40

3.3

13,200

HealthShares Ophthal

HHZ

0.75

1.8

13,500

HealthShares Meta-Endo

HHM

0.75

1.8

13,500

Adelante Shares RE Shelter

AQS

0.68

2

13,600

Adelante Shares RE Value

AVU

0.68

2

13,600

Adelante Shares RE Composite

ACB

0.68

2

13,600

Adelante Shares RE Classics

ACK

0.68

2

13,600

Adelante Shares RE Yield Plus

ATY

0.68

2

13,600

HealthShares Inf Disease

HHG

0.75

1.9

14,250

HealthShares GI/Gender

HHU

0.75

1.9

14,250

Adelante Shares RE Growth

AGV

0.68

2.1

14,280

Claymore/Ocean Tomo Grwth

OTR

0.60

2.4

14,400

Claymore/Morningstar Manufacturing

MZG

0.40

3.8

15,200

HealthShares Derm & Wound

HRW

0.75

2.1

15,750

HealthShares Neuroscience

HHN

0.75

2.2

16,500

HealthShares Cardiology

HRD

0.75

2.2

16,500

First Trust Dow Jones Global Select Div

FGD

0.60

2.8

16,800

SPA MarketGrader Large Cap 100

SZG

0.85

2

17,000

HealthShares Auto-Inflam

HHA

0.75

2.3

17,250

PowerShares FTSE RAFI Intl Real Estate

PRY

0.75

2.3

17,250

HealthShares Orthopedic Repair ETF

HHP

0.75

2.4

18,000

First Trust ConStp AlpDEX

FXG

0.70

2.6

18,200

First Trust NASDAQ ExTech

QQXT

0.97

1.9

18,430

iShares FTSE NAREIT Resdn

REZ

0.48

4

19,200

Rydex S&P 600 Pure Growth

RZG

0.35

5.5

19,250

SPDR DJ Large Cap

ELR

0.21

9.2

19,320

Market Vectors-Leh Bro AMT-Free Int Muni

ITM

0.20

9.9

19,800

Rydex 2x S&P MidCap 400 ETF

RMM

0.70

2.9

20,300

Vanguard Extended Duration Treasury

EDV

0.14

14.5

20,300

HealthShares Euro Drugs

HRJ

0.95

2.2

20,900

iShares FTSE EPRA/NAREIT North America

IFNA

0.48

4.5

21,600

Market Vectors Leh bro AMT-Free Long Muni

MLN

0.24

9.1

21,840

HealthShares EuroMed&Dvcs

HHT

1.01

2.2

22,220

First Trust Matrl AlpDEX

FXZ

0.70

3.2

22,400

NYSE Arca Tech 100 ETF

NXT

0.50

4.8

24,000

FocusShares ISE SINdex Fund

PUF

0.60

4

24,000

HealthShares Emerging Cancer ETF

HHJ

0.75

3.2

24,000

SPDR DJ Mid Value

EMV

0.23

10.5

24,150

iShares FTSE EPRA/NAREIT Europe

IFEU

0.48

5.1

24,480

Here's a VERY interesting side note. Matt tells me that if oil stays high today, that the MACRO Oil funds would liquidate according to the prospectus. (He's posting a full blog on this soon.) A quick read also tells me that the UCR, the Up Macro, has $250 million in it...and at 160 basis points in fees, that, astoundingly represents $4 million in annual revenue for that fund. I bet none of you knew that. Well, Sam Masucci (MACRO head) - probably he knows.

Before you start thinking things are dire in the ETF business, you can remember that not only did fund No. 50 have over $8 million in annual revenue, but 51-100 are not doing too bad either. In fact, of the 603 ETFs in our sample here, the $1 million in revenues per fund mark falls out at fund No. 210 (the iShares Lehman MBS Fixed - MBB). So this looks like a pretty healthy industry to us, despite all the doom and gloom about loads of tiny funds. UCR that I mentioned with $4 million in annual revenue, is not even in the top 100!

ETFs 51 To 100 Ranked By Revenues Per Fund

iShares S&P 600 Small

IJR

0.20

3919.9

7,839,800

ProShares Ultra S&P 500

SSO

0.95

801.8

7,617,100

iShares Russell Mid Growth

IWP

0.25

3046.2

7,615,500

iShares Australia

EWA

0.51

1479

7,542,900

UltraShort Real Estate ProShares

SRS

0.95

793.9

7,542,050

iShares Malaysia

EWM

0.51

1477.4

7,534,740

iShares COMEX Gold Trust

IAU

0.40

1872.5

7,490,000

iShares Mexico

EWW

0.51

1466.4

7,478,640

iShares NASD Biotech

IBB

0.50

1478.2

7,391,000

UltraShort FTSE/Xinhua China 25 ProShares

FXP

0.95

767.4

7,290,300

iShares DJ US Energy

IYE

0.60

1197.1

7,182,600

iShares C&S Realty

ICF

0.35

2043.8

7,153,300

iShares Rusell Mid Value

IWS

0.25

2814.6

7,036,500

iShares S&P 500 Value

IVE

0.18

3882.8

6,989,040

iShares Russell Midcap

IWR

0.20

3441.5

6,883,000

Vanguard Total Stock Market

VTI

0.07

9732.4

6,812,680

iShares R2000 Growth

IWO

0.25

2716.4

6,791,000

PowerShares FTSE RAFI 1000

PRF

0.76

868.6

6,601,360

Claymore/BNY BRIC ETF

EEB

0.60

1032.4

6,194,400

iShares S&P Glb Energy

IXC

0.65

942.5

6,126,250

UltraShort Oil & Gas ProShares

DUG

0.95

643.3

6,111,350

ProShares UltraShort Dow 30

DXD

0.95

635.9

6,041,050

streetTRACKS DJ Int RlEst

RWX

0.60

993.1

5,958,600

iShares U.K.

EWU

0.51

1150

5,865,000

ProShares UltraShort S&P 500

SDS

0.20

2922.5

5,845,000

Market Vectors Russia

RSX

0.69

833.5

5,751,150

iShares DJ Tech

IYW

0.60

948.2

5,689,200

Health Care Sel SPDR

XLV

0.23

2401.2

5,522,760

iShares Russell 3000

IWV

0.20

2747.1

5,494,200

iShares DJ Health

IYH

0.60

901.9

5,411,400

iShares Russell 1000

IWB

0.15

3512.6

5,268,900

Technology SPDR

XLK

0.23

2251.7

5,178,910

Consumer Staples SPDR

XLP

0.23

2240.4

5,152,920

Vanguard Euro Stock

VGK

0.18

2850.4

5,130,720

iShares S&P 400 Mid Value

IJJ

0.25

2048.4

5,121,000

Rydex S&P Equal Weight

RSP

0.40

1275.9

5,103,600

iShares GS$ InvesTop

LQD

0.15

3362.1

5,043,150

iShares MSCI EAFE Growth

EFG

0.40

1254.5

5,018,000

iShares S&P 400 Mid Growth

IJK

0.25

1983.6

4,959,000

Utilities SPDR

XLU

0.26

1866.5

4,852,900

iShares DJ Utilities

IDU

0.60

797

4,782,000

iShares DJ Basic Mat

IYM

0.60

788

4,728,000

iShares GSCI Commodity Id

GSG

0.75

619.2

4,644,000

iShares South Africa

EZA

0.74

582

4,306,800

iShares S&P Glb Health

IXJ

0.65

653.8

4,249,700

PowerShares DB G10 Currency Harvest

DBV

0.81

524.4

4,247,640

Ultra Financials ProShares

UYG

0.95

446.5

4,241,750

iShares MSCI EAFE Value

EFV

0.40

1027.3

4,109,200

PowerShares Dyn Lg Growth

PWB

0.64

639.8

4,094,720

iShares Lehman 7-10

IEF

0.15

2729.3

4,093,950

Obviously, there is a ton more that we can do with this data, and we will, breaking things down by expenses and revenue per product issuer, examining internal fund expenses, actual revenue per issuer and then breaking down profitability per issuer. We've got all of that data. And it's clear from the flood of email and comments we've gotten that you love this kind of thing...even in its simplest (above) form.

Of course, I'll also be working to put all of this into perspective by looking at some of the active shops and comparing their businesses and margins to the ETF business.

Source: ETF Fund Revenues: A View from the Bottom