A Visual Guide To The ETF Universe

Published on by DANIELA PYLYPCZAK-WASYLYSZYN  on APRIL 23, 2013 |

Updated FEBRUARY 25, 2014
With over 1,400 products and counting, the ETF universe has certainly come a
long way since SPY made its debut as the first exchange-traded fund in 1993.
And as the industry continues to democratize the investment landscape,
exchange-traded products are becoming more widely used by all types of
investors, from individuals with relatively small accounts to sophisticated hedge
funds managing billions of dollars.

Considering the sheer magnitude of the ETF space, picturing the size and scope
of the industry may seem like a daunting task. Here we take a visual approach to
slicing and dicing the ETF universe.

As always, we encourage you to use our suite of free tools at ETFdb.com,

including the ETFdb Categories, ETF Screener and the ETF Analyzer for all
your ETF research needs.
Product
Asset Class Largest ETF
Count
ETFs By Asset Class Equity 879 SPY
Bond 215 LQD
Even a quick glance at the ETF Commodity 151 GLD
product lineup shows the dominance Alternatives 54 VXX
of equity-based funds. Together, they Currency 37 UUP
account for over 80% of the ETF Real Estate 35 VNQ
industry’s total assets and more than Multi-Asset 35 MDIV
two-thirds of the total product count. Preferred Stock 8 PFF

The prolific S&P 500 ETF (SPY, A) is by far the largest equity ETP, as well as
the largest fund in the ETF universe. To put things in perspective, SPY’s total
assets under management account for over one-tenth of all equity-based funds’
assets combined.
Fixed income exchange-traded funds are the second largest group by product
count, followed by commodity-based ETPs. But while there are a greater
number of individual bond ETFs, commodity funds rake in significantly more
assets. Another surprising statistic is that while there are only about 35 real
estate ETFs, together they maintain more assets under management than bond
and alternative funds combined.
ETF Universe By Asset ClassEquityCommodityReal EstateBondPreferred
StockCurrencyAlternativesMulti-Asset8,9%83,7%
Asset Class AUM ($)
Equity $1 027 047 484 000
Commodity $109 504 800 000
Real Estate $38 985 159 000
Bond $24 762 133 600
Preferred
$16 529 820 000
Stock
Currency $4 781 981 000
Alternatives $4 278 974 000
Multi-Asset $1 875 534 000

Exchange-Traded Product
Structure Largest ETP
Structures
ETF VWO
While many use the term “ETF” rather liberally to ETN AMJ
refer to a variety of different exchange-traded Commodity
DBC
Pool
products, ETFs themselves do in fact account for
Grantor Trust GLD
the vast majority of ETPs. ETNs however, which
UIT SPY
are debt instruments, have steadily gained
ground over the years, with the largest exchange-
traded note by assets being the ultra popular Alerian MLP Index ETN (AMJ, B).
Some investors may be surprised to find that the two largest exchange-traded
products aren’t ETFs at all; SPY is a Unit Investment Trust, and GLD is a
Grantor Trust
ETP StructuresETFETNCommodity PoolGrantor TrustUIT14,4%79,5%
Structure Product Count
ETF 1 121
ETN 203
Commodity Pool 59
Grantor Trust 19
UIT 8
Active vs. Passive Management

More than 95% of all exchange-traded products are “passive,” meaning they are
designed to replicate the benchmark of an index. Actively-managed ETFs have
gathered momentum over the years; there are now about 50 active exchange-
traded products, which, combined, manage over $12.6 billion in assets
[see Actively-Managed ETF Portfolio  ].
The majority of actively-managed ETPs are bond funds, with PIMCO’s Total
Return ETF (BOND, B+) (managed by legendary bond king Bill Gross) raking
in over $4.5 billion in total assets – that amounts to more than a third of all
active ETP’s assets combined.
And while there are several equity, alternatives and currency funds that are
actively-managed, there are not too many options for the remaining asset classes
– a sign that active ETPs are till just scratching the surface of their potential.

Active ETPs In Each Asset Class#

ActiveETPsAlternativesEquityCommodityBondCurrencyReal EstatePreferred
StockMulti-Asset05101520Asset ClassProduct Count
Asset Class # Active ETPs
Alternatives 6
Equity 13
Commodity 0
Bond 17
Currency 5
Real Estate 1
Preferred
0
Stock
Multi-Asset 1

Leveraged and Inverse ETPs

 Leverage/Inverse Largest ETP
In total, there are about 250 leveraged and/or 2X SSO
inverse exchange-traded funds, which, combined, 3X FAS
manage over $31 billion in assets. The largest -X SH
fund is ProShares’ UltraShort Barclays 20+ Year -2X TBT
-3X TZA
Treasury Fund (TBT, A), a popular and powerful
tool for active traders.
Of all the combinations of leveraged and inverse exposure, the vast majority are
2x and -2x. Products that offer 3 times the exposure of a given index, however,
account for nearly a third of all leveraged and/or inverse ETPs.