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The ETF industry ETF returns 36 per cent since inception


The Toroso ETF Industry Index (TETF.Index), which underpins the ETF Industry Exposure & Financial Services ETF (NYSE Arca: TETF), the first index and ETF which mirrors the ETF industry itself, has reported gains of 36 per cent since inception just over a year ago.

The performance comes against a backdrop of record-setting inflows and a growing number of innovative entries to the ETF universe plus performance of 14.4 per cent for the S&P 500 Index over that same time frame, while the Financial Select Sector Index returned 17.6 per cent over that period.

“The ETF is one of the most meaningful innovations in the financial services industry in decades,” says Mike Venuto (pictured), CIO of Toroso Investments and co-founder of TETF.Index. “It has completely changed the way portfolios are constructed, impacting everyone from the smallest retail investor to the biggest institutions. The key facets of the structure – transparency, liquidity, lower costs – are by now well understood, but investors are just now catching onto is the fact that as the ETF has gone mainstream, the ETF industry itself has emerged as a compelling investment idea.”
Venuto is a member of the Index Committee overseeing TETF.Index, along with industry veterans Guillermo Trias, CEO of Toroso Investments; Linda Zhang, Founder of Purview Investments; Kris Monaco, Founder of Level ETF Ventures; Kevin Carter, Founder of Big Tree Capital; Scott Martin, Chief Investment Officer with Kingsview; and Burton Malkiel, legendary Princeton professor and the author of “A Random Walk Down Wall Street”.
In 2017, the US ETF industry alone saw record-setting inflows of more than USD476 billion to end the year north of USD3.4 trillion in total industry assets. 
“The growth trajectory of the category in the US has been phenomenal,” says Trias. “But this is not just an American story. Europe and Asia also have vibrant ETF ecosystems, and Europe in particular, following the implementation of MiFID II, seems poised for growth in its ETF product lineup and asset base.”

“The TETF.Index was designed to provide broad exposure to the ETF industry, and includes not only fund sponsors but also exchanges, trading and custody providers, liquidity providers, index and data companies, and others whose work plays a vital role in the continued evolution of this vibrant business,” says Venuto. “With the first year of TETF.Index and TETF live performance now in the books, we’re eager to continue to tell the story of the ETF industry and to bring the message to investors and advisors as to why we believe the industry itself is worth a closer look as an investment.”

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