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1) AdvisorShares Files for Let Bob AI Powered Momentum ETF

SEC Filings  |  11/5/2021

Because… The first AI (artificial intelligence)-run ETF that invests in U.S. equities, EquBot’s AI Powered Equity ETF (AIEQ), was introduced in October 2017, five months after AlphaGo, a Google AI program, beat the world’s best player of the ancient Chinese board game Go. AIEQ had $180 million of assets as of November 12, 2021. It collected $32 million in the first three quarters after parting with $18 million in 2020. AIEQ gathered $77.6 million in the first two weeks of operations, indicating that it only added about $100 million over the past four years. The 1-star fund ranked in the 88% for its 3-year return, but its 1-year category ranking improved to the top 8%. AIEQ charges 0.80%, higher than the category average of 0.71%. On the other hand, SPDR S&P Kensho New Economies Composite ETF (KOMP), which also embraces AI technology, amassed $2.2 billion since its October 2018 inception, one year after AIEQ’s debut. KOMP carries a 0.20% fee, just a quarter of AIEQ’s, and it also outperformed 92% of its peers for the 1-year return as of September.

2) EPFR Data Reports Total Global ETF Assets Exceed $10 Trillion

PR Newswire  |  11/11/2021

Because… EPFR data shows that global ETF assets hit the $1 trillion mark at the end of 2009. It took a little more than three years to reach $2 trillion and less than three years to gain another trillion. Between 2016 and 2020, the industry achieved a new trillion-dollar milestone every year. Having three trillion-dollar records set this year is even more unprecedented. ETFs in the U.S. have contributed the most to the rapid asset growth. Their YTD inflows of $761.7 billion as of November 11, 2021 pushed assets of U.S.-listed ETFs to surpass $7 trillion earlier this month. We expect the industry’s upward trajectory to continue for the foreseeable future. The foray into the space by large asset managers; more conversions from mutual funds to ETFs; re-allocation of client assets from mutual funds to ETFs; commission-free ETF trading; the increased popularity of robo-advisory platforms and model portfolios that mainly use ETFs; investor preference for a low-cost, tax-efficient, transparent investment vehicle; a higher comfort level with ETFs; and wider investor adoption of ESG and thematic investing are collective forces elevating ETF assets to new heights.

3) Why ‘NUGO’ Has Gained $200M Every Day

ETF.com  |  11/12/2021

Because… Mystery solved! Nuveen Growth Opportunities ETF (NUGO) was launched on September 27, 2021, but it gathered a whopping $1.6 billion in its first month of trading. NUGO was the industry’s eighth best-seller in October. It was also the only fund in the top 10 that is not offered by one of the five largest ETF providers. The fund single-handedly helped Nuveen move into the seventh best-selling ETF provider’s position. This was remarkable because the firm only had $6.8 billion of ETF assets, whereas the other six ETF sponsors all had more than $100 billion of assets. As of November 12, NUGO already grew its assets to $3.1 billion, which means its assets increased by $1.5 billion within 10 trading days. The fund’s fast start is especially noteworthy when other active semi-transparent ETFs have yet to gain traction. As revealed by ETF.com, moving assets internally from a mutual fund to an ETF (often referred to as BOYA “Bring-Your-Own-Assets” strategy) is the secret weapon. JP Morgan, Goldman Sachs, and Schwab have all used this approach to help their ETFs build scale and increase liquidity in a short time period.