The top ETF launches of the past decade were the focus on this week’s ETF Prime. Host Nate Geraci and Cynthia Murphy, director of research at VettaFi, counted down the 10 most successful debuts by current assets. Murphy noted that the S&P 500’s roughly 13% annualized gain over that span helped shape many of the performance stories on the list.
Key Takeaways:
- QQQM leads all top ETF launches over the past decade with over $97 billion in assets.
- JPMorgan placed three funds in the top ten, cementing its spot as the sixth largest ETF issuer.
- IBIT crossed $58 billion in assets, aided by BlackRock placing it on its Aladdin platform at launch.
At number 10, the SPDR Gold MiniShares Trust (GLDM) stood out as a segmentation case study. State Street priced it at 10 basis points versus flagship SPDR Gold Shares (GLD) at 40, creating a low-cost companion that has posted positive net inflows every calendar year since its 2018 launch. Number nine, the Capital Group Dividend Value ETF (CGDV), arrived with near-perfect timing in 2022, just as inflation surged and growth stocks fell from favor.
Distribution drove the next four spots on the list. Number eight, the iShares U.S. Equity Factor Rotation Active ETF (DYNF), held virtually no assets until BlackRock embedded it in model portfolios in January 2024. Murphy described model portfolios as “the expressway to the distribution muscle.”
J.P. Morgan rounded out numbers five through seven with the JPMorgan Ultra-Short Income ETF (JPST), the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ), and the JPMorgan Equity Premium Income ETF (JEPI).
Together, those funds represent three of the four largest active ETFs on the market. Murphy credited J.P. Morgan for popularizing the options-income category through strong execution and distribution, cementing its place as the sixth largest ETF issuer overall.
Top ETF Launches: The Final Four
Number four, the Dimensional U.S. Core Equity 2 ETF (DFAC), converted from a mutual fund in 2021, giving it a head start on assets. When reports surfaced that Dimensional might be exploring a sale, Murphy expressed skepticism. She said the timing seemed odd given the firm’s leadership role in the ETF share-class movement.
Number three, the iShares Bitcoin Trust (IBIT), topped $58 billion in assets from its January 2024 launch, aided by BlackRock placing it on its Aladdin risk management platform from day one. Number two, the iShares 0-3 Month Treasury Bond ETF (SGOV), crossed $91 billion by offering a 35% cost advantage over veteran State Street SPDR Bloomberg 1-3 Month T-Bill ETF (BIL), what Murphy called the “cleanest explanation” for its success.
Topping the list, the Invesco Nasdaq 100 ETF (QQQM) has gathered over $97 billion in assets. The Nasdaq 100 has surged more than 160% since QQQM launched, outpacing the S&P 500 by 25 to 30 percentage points. Murphy called it “the ETF for the times we live in.”
Allyson Wallace, global head of ETFs for Morgan Stanley Investment Management, also joined this week’s episode. Wallace highlighted the Eaton Vance Total Return Bond ETF (EVTR), which grew from $350 million at conversion to $5.3 billion, and introduced the Morgan Stanley Bitcoin ETF (MSBT), the lowest-cost spot Bitcoin ETF on the market at 14 basis points and already at $250 million in assets since its April launch. She said the firm’s next focus is expanding its active equity lineup.
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