Investors Are Not Waiting to Invest in ETFs
Despite the impact of the pandemic, 17% of ETFs launched in 2020 already have more than $100 million in assets. Investors are not waiting for a three-year anniversary to consider putting ETF money to work as they used to do with mutual funds.
There were 53 ETFs launched in 2020 that already have more than $100 million in assets. While some investors and research providers wait for an ETF to hit a three-year anniversary or reach $100 million in assets before giving it due consideration, for more than a decade CFRA has focused on funds much earlier in the life cycle and regardless of asset size. With the ability to look at fund holdings from a risk and reward perspective and understand the fund’s costs, our research provides analysis to help begin the due diligence process and put money to work within the first few months of an ETF’s trading. Overall, 17% of the products that came to market in 2020 and were tracked by CFRA’s First Bridge ETF database hit the key $100 million milestone as of Feb. 19 aided by ETF inflows. This is impressive as COVID-19 limited travel and previously planned investor education efforts, including conferences and road shows.