The ETF industry has been seeing explosive growth, courtesy of its unique strategies, creativity, transparency, diversification benefits, enhanced tax competencies, low turnover and of course, low cost.
As such, several ETFs have shown speedy growth, with AUM rising more than 1,000% so far this year. Investors should note that a small fund with a lower level of AUM has seen a bigger percentage increase in its assets. Some of the fastest-growing ETFs of this year are First Trust Nasdaq Food & Beverage ETF FTXG, Mindful Conservative ETF MFUL, AXS Astoria Inflation Sensitive ETF PPI, Mohr Growth ETF MOHR and FolioBeyond Rising Rates ETF RISR, per etf.com.
Inside the Growth
Most recently, an environmental, social and governance (ESG) boom and the race to zero fees drove the interest in the ETF industry. The continued technological advancement and digital revolution, as well as growing awareness, have made ESG attractive. Meanwhile, the price war has been heating up, with most of the ETFs having an expense ratio of zero or below zero. This war is likely to continue among asset managers in order to attract investors’ money and gain market share (read: Play Dirt-Cheap Dividend ETFs to Fight More Fed Rate Hikes).
A rise in thematic investing has also made investors crazy for ETFs as they jump on the potential to put their money into a highly specialized theme (or niche investment). This is because thematic ETFs seek to provide exposure to a trend or developing business model through the compilation of securities from multiple sectors. Apart from the ESG-focused theme, cannabis, 5G technology and cloud computing remained the hottest trends.
First Trust Nasdaq Food & Beverage ETF (FTXG) – AUM Growth 12166%
First Trust Nasdaq Food & Beverage ETF offers exposure to U.S. companies within the food and beverage industry. It tracks the Nasdaq US Smart Food & Beverage Index, holding 30 securities in its basket, with each accounting for less than 8.5% share.
First Trust Nasdaq Food & Beverage ETF has AUM of $795.3 million and charges 60 bps in annual fees. It sees an average daily volume of about 140,000 shares and has a Zacks ETF Rank #3 (Hold).
Mindful Conservative ETF (MFUL) – AUM Growth 6950%
Mindful Conservative ETF seeks current income by using a tactical go-anywhere approach to invest in a wide variety of asset classes based on the market capitalization and industry classification, including convertible equity securities and fixed-income ETFs.
Mindful Conservative ETF has amassed $90.1 million in its asset base while charging 1.07% in annual fees. It trades in an average daily volume of 83,000 shares.
AXS Astoria Inflation Sensitive ETF (PPI) – AUM Growth 5588%
AXS Astoria Inflation Sensitive ETF is actively managed and seeks long-term capital appreciation in inflation-adjusted returns. AXS Astoria Inflation Sensitive ETF provides investors a one-stop inflation strategy with multi-asset exposure to equities, commodities and TIPS (read: TIPS ETFs to Bet on Higher Inflation).
AXS Astoria Inflation Sensitive ETF has accumulated $65.2 million since its debut in December 2021 while charging 71 bps in annual fees. It trades on volume of 25,000 shares per day on average.
Mohr Growth ETF (MOHR) - AUM Growth 4370%
Mohr Growth ETF is an actively managed and uses a tactical go-anywhere approach to invest in a wide variety of asset classes, based on the market capitalization and industry classification.
Mohr Growth ETF has AUM of $113.6 million andan expense ratio of 0.96%. It trades in an average daily volume of 104,000 shares.
FolioBeyond Rising Rates ETF (RISR) - AUM Growth 4305%
FolioBeyond Rising Rates ETF is an actively managed that seeks to provide protection against rising interest rates while generating current income under stable interest rates. It invests primarily in interest-only mortgage-backed securities (MBS IOs) and U.S. Treasury bonds (read: TIPS ETFs to Bet on Higher Inflation).
FolioBeyond Rising Rates ETF debuted last September and has gathered assets worth $132.5 million in its management. It charges a higher fee of 1.01% annually and trades in a volume of 125,000 shares a day on average.
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First Trust NASDAQ Food & Beverage ETF (FTXG): ETF Research Reports
FolioBeyond Rising Rates ETF (RISR): ETF Research Reports
Mohr Growth ETF (MOHR): ETF Research Reports
Mindful Conservative ETF (MFUL): ETF Research Reports
AXS Astoria Inflation Sensitive ETF (PPI): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.