The Toroso ETF Industry Index measures and monitors the performance of publicly traded companies that derive revenue from the Exchange Traded Funds ecosystem. Constituents range from fund sponsors, to index & data companies, trading & custody platforms, liquidity providers, and exchanges.

Why measure the ETF Industry growth? Thanks to their key attributes—transparency, tax efficiency, low management fees, intraday tradability, and ability to provide easy access to asset classes and strategies previously out-of-reach for everyday investors—ETFs have seen steadily growing interest from individual investors, financial advisors, and institutional investors in recent years.

Long Term Growth Prospects. Over the last decade, AUM in the ETF space grew at an annualized 19.4%, and in 2016, the U.S. ETF industry recorded record inflows totaling $293 billion—the highest ever.

Targeted Access. ETF sponsors are not the only entities to benefit from expansion throughout the space. Toroso’s ETF Industry Index measures the growth of the entire ETF value chain—the intricate ecosystem of financial innovators and service providers that profit from the success and benefits of ETFs.

“ETF Asset Growth, in $500 billion steps”


Source: ETFGI






ETF Ecosystem


US ETF vs Mutual Fund Net Flows

Source: Morningstar Direct


ETF Evolution

Source: Morningstar Direct


The Toroso ETF Industry Index measures and monitors the performance of an investable universe of publicly-traded companies deriving revenues from the ETF (“exchange traded fund”) industry. The Index was created and is owned by Toroso Investments, LLC. The index is maintained by Solactive AG (the “Index Administrator”).

Index Construction

The Toroso ETF Industry Index is comprised of public securities of issuers that meet the specific and objective criteria listed below.

All participants are equal weighted with in the tiers and are subject to a 9% maximum weight for any one security with in a tier.

The tier system, as described below, is designed to overweight companies with the most exposure to the growth of the ETF industry:

TIER A – 50%

Substantial participation in the ETF industry with direct financial impact to shareholders

This equally-weighted tier is designed to capture companies with the purest connection to the growth of the ETF industry. It should include dominant companies like BlackRock, which oversees close to 40% of all US ETF assets, as well as influential pure ETF players, such as WisdomTree Investments. Tier A will focus on ETF issuers but can include companies from other categories that have substantial revenue from the ETF industry or are an integral part of the ETF ecosystem. An example of a current non-issuer Tier A component is Chicago Board Options Exchange, Incorporated (CBOE). With the acquisition of BATS and ETF.COM, as well as their dominance in the trading and indexation of volatility, the committee determined that CBOE is an integral part of the ETF ecosystem and has substantial revenue from the industry.

Download Tier A Fact Sheet 

TIER B – 25%

Substantial participation in the ETF industry with indirect financial impact to shareholders

This equally-weighted tier is dedicated to companies that have had a meaningful impact on the industry but the revenues derived to the company may either be indirect or muted by other business activities. KCG holdings is an example of a company that is integral to the ETF ecosystem as a key lead market maker and liquidity provider, but their revenues can deviate from the growth of ETFs as their primary business is execution and transaction oriented for all securities, not just ETFs. JP Morgan is an example of the “muted” but meaningful tier B selection. JP Morgan is an issuer with substantial ETF assets but many other business activities overshadow this revenue for the firm. In addition to their issuer status, JP Morgan is involved with ETF trading, ETNs (JPMorgan Alerian MLP Index ETN, ticker AMJ, currently the largest ETN), ETF custody & trust service and minority investment in a private ETF issuer. Despite the indirect effect on the revenue and share price of JP Morgan, the firm has a substantial impact on the ETF industry.

Download Tier B Fact Sheet 

TIER C – 15%

Moderate participation in the ETF industry with indirect financial impact to shareholders

This equally-weighted tier is designed to capture exposure to companies that support or have moderate participation in the ETF industry. Examples of support companies that support the industry are custodians and fund service companies like US Bancorp or Bank of New York. Virtus, Northern Trust and Ameriprise are examples of companies that do issue/sponsor ETFs but their current impact and market share of the ETF industry is moderate. Additionally, the revenue and relevance to shareholders of these companies is indirect.

Download Tier C Fact Sheet 

TIER D – 10%

New or minor participation in the ETF industry with indirect financial impact to shareholders

The key purpose of this equally-weighted tier is to gain exposure to ETF industry new-comers and minor participants. Eaton Vance Corporation is a great example of new-comer that is also an innovator with their NextShares structure, but the revenue and ETF asset market share are relatively minor. This tier can also capture service, data, exchange, and trading companies that have ETF oriented revenue but have yet to make ETFs a business priority.

Download Tier D Fact Sheet 
Ameriprise Financial Inc AMP
Bank of New York Mellon BK
BlackRock Inc BLK
Cboe Global Markets Inc CBOE
Charles Schwab Corp SCHW
Citigroup Inc C
CME Group Inc Class A CME
Cowen Inc COWN
Deutsche Bank AG DB
Deutsche Boerse AG dboef
E*TRADE Financial Corp ETFC
Envestnet Inc ENV
FactSet Research Systems Inc FDS
Flow Traders NV FLOW
Franklin Resources Inc BEN
Goldman Sachs Group inc GS
Interactive Brokers Group Inc IBKR
Intercontinental Exchange ICE
Invesco Ltd IVZ
Investment Technology Group Inc ITG
Janus Capital Group Inc JNS
JPMorgan Chase & Co JPM
Legg Mason Inc LM
London Stock Exchange Group PLC LSE
LPL Financial Holdings Inc LPLA
Manulife Financial Corp MFC
MarketAxess Holdings Inc MKTK
Morgan Stanley MS
Morningstar Inc MORN
Nasdac Inc NDAQ
Nomura Holdings Inc 8604
Northern Trust Corp NTRS
Pincipal Financial Group Inc PFG
S&P Global Inc SPGI
SEI Investments Co SEIC
State Street Corp STT
TD Ameritrade Holding Corp AMTD
Thomson Reuters Corp TRI
US Bancorp USB
Virtu Financial Inc A VIRT
Virtus Investment Partners Inc VRTS
Wisdom Tree Investments Inc WETF