The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:ETF Shops Rake In $6B Per Year Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, October 10, 2016

ETF Shops Rake In $6B Per Year

News summary by MFWire's editors

ETF shops bring in a $6.043 billion annually. The big three account for more than 63 percent of that revenue, and the top ten account for 88 percent.

Dave Nadig
Director of Exchange Traded Funds
That's the estimation of FactSet, as of September 2016. Dave Nadig, director of ETFs at FactSet Research Systems, highlights that estimate and more in a recent ETF.com article about "how much money the ETF industry makes." (FactSet owns what used to be the data side of ETF.com, while BATS owns the publishing side and Informa bought the conference side.)

One important note: a potentially important driver of ETF shop's revenue may not factor in to FactSet's estimations here. Nadig explains the estimations as coming from taking "today's assets ... and simply multiply it by the expense" to get what he calls "an 'annual revenue potential' for any given fund." Nadig makes no mention about securities lending, a practice that generates revenue from many ETFs and mutual funds.

Per FactSet's estimation, BlackRock's iShares' [profile] $939 billion in ETF AUM brings in $2.42 billion in annual revenue. SSgA [profile] ($456 billion in ETF AUM, third biggest) brings in $879 million in ETF revenue and is thus second-biggest by revenue, and Vanguard [profile] ($576 billion in ETF AUM, second biggest) brings in $526 million in ETF revenue and is thus third-biggest by revenue. Invesco PowerShares [profile], First Trust [profile], ProShares [profile], WisdomTree [profile], Van Eck [profile], Guggenheim [profile], and Rafferty's Direxion [profile] round out the top 10 ETF shops by revenue.

FactSet also breaks down ETF shop revenue by type. The research shop estimates that plain vanilla ETFs generate $3.79 billion in revenue, 63 percent of total industry revenue. Yet the non-vanilla (i.e. smart beta and the like) ETFs account for the remaining 37 percent of ETF revenue, punching above their weight (as they account for 28 percent of industry AUM).

The full article has more context around FactSet's ETF industry revenue estimates. Fundsters interested in the ETF side of the business should take a look. 

Edited by: Neil Anderson, Managing Editor

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2021: Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

  1. MFDF Director Discussion Series - Open Forum via Zoom (Midwest), March 10
  2. FinReg Outlook 2021, March 10
  3. Irish Funds North American Digital Seminar, March 11
  4. MFDF webinar - Municipal and Taxable Fixed Income — A Multi-Speed Recovery, March 12
  5. 2021 Virtual Mutual Funds and Investment Management Conference, Mar 15-19
  6. Women for Impact - A Call to Action, March 16
  7. SEC & DOL Standard of Conduct Rulemakings — Present & Future Considerations, March 23
  8. Expect Miracles Foundation's Virtual Mystery Game Night, March 24
  9. MFDF Director Discussion Series - Open Forum via Zoom, March 24
  10. ETFGI Global ETFs Insights Summit - ESG & Active ETF Trends, Mar 24-25
  11. MFDF webinar - Asset Management M&A for Fund Directors — Recent Trends and Governance Issues, March 31
  12. MFDF Director Discussion Series - Open Forum via Zoom, April 7
  13. MFDF In Focus: Board Oversight of Sub-advisers, April 15
  14. ETF.com Awards 2020, April 20
  15. The 31st Sub-Advised Funds Forum, Apr 20-21
  16. MFDF Director Discussion Series - Open Forum via Zoom (Northeast), April 21
  17. FIASI virtual event - ESG in Fixed Income: Shining a Light on Transparency, Apr 22-23
  18. 44th Annual AIMSE Marketing & Sales Conference, May 2-4
  19. MFDF Director Discussion Series - Open Forum via Zoom (Southeast), May 5
  20. ICI 2021 General Membership Meeting - Day 1, May 6
  21. ICI 2021 General Membership Meeting - Day 2, May 13
  22. 2021 FINRA Annual Conference, May 18-20
  23. MFDF Director Discussion Series - Open Forum via Zoom, May 19
  24. 2nd annual ETFGI Global ETFs Insights Summit - USA, May 19-20
  25. Irish Funds Online Annual Global Funds Conference 2021, May 19-20
  26. MFDF webinar - Fund Director Compensation: MPI Annual Survey (2021), May 20

©All rights reserved to InvestmentWires, Inc. 1997-2021
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use