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(Key Performance Indicators)
As of January 31, 2018. Source: Morningstar Direct.
ETF Ownership and launches information sourced to Toroso Investments Research tools, as of February 2, 2018.
 
INDEX PERFORMANCE DATA
02/02/2018         1 Wk 1 Mo 3 Mo 6 Mo 1 Yr QTD YTD Since
Inception 
Toroso ETF Industry Index (3.04%) 5.64% 12.07% 20.37%   5.19% 5.19% 32.50%
S&P Financial Select Sector Index (2.68%) 5.30% 9.80% 17.18% 28.65% 5.24% 5.24% 25.42%
Returns as of February 2, 2018.
Inception Date: April 4, 2017. Index performance is for informational purposes only and does not represent the ETF. Indexes are unmanaged and one cannot invest directly in an index.
Click here for information on the ETF following TETF Index
ETF RESPONSE TO A BEAR MARKET POSSIBILITY
Volatility has returned to the markets after historical levels of dormancy. What does this mean for the ETF ecosystem? After almost 77 billion in inflows in January, what should we expect to see with increased volatility?
Bloomberg noted last week that ETF flows were strong even though we experienced a sharp market sell-off. We decided to explore how ETF flows have historically responded to market declines. 

HOW HAS VOLATILITY AND MARKET DRAWDOWNS AFFECTED ETF FLOWS HISTORICALLY?

We reviewed ETF monthly flows following a market pull back. Specifically, when S&P 500 returns were worse than -6%, we calculated the average of the following 3 months ETF flows. As you can see, negative returns have actually been beneficial for ETF flows!
The table below is the 20 worst months for the S&P 500 returns over the last 20 years, and the average respective ETF and Mutual Fund flows in the following 3 months.

ETF FLOWS ARE STRONG FOLLOWING MARKET PULLBACKS 

While Mutual Fund flows overall are still higher than ETFs over time, the shift is changing, even in sporadic market pullbacks. It’s clear to see when bigger pullbacks occur, and tax basis is less of an issue for investors, the shift towards ETFs as the preferred vehicle for market investments has grown.

These findings also end the myth that ETF flows turn negative in a bear market. The data illustrates that during the worst months of the market history, ETF flows respond positively.
ETF LAUNCHES 
KraneShares MSCI All China Hlth Care ETF              KURE
WisdomTree CBOE Rssll 2000 PtWrt Strt ETF         RPUT
Motley Fool 100 ETF                                                    TMFC
Innovation Shares NextGen Protocol ETF                KOIN
JPMorgan USD Emerging Mkts Svr Bd ETF               JPMB
JPMorgan Long/Short JPLS
ETF LAUNCH OF THE WEEK: JP MORGAN LONG/SHORT JPLS
This ETF came out more than a week ago but we thought we would mention anyways, since considering the downturns last week, we need more ETFs that help protect on the downside.

TETF INDEX PERFORMANCE VS LEADING FINANCIAL INDEXES

As of February 1, 2018.
TETF INDEX UNDERLYING TOP/BOTTOM 10 HOLDINGS PERFORMANCE
As of February 2, 2018. Source: Morningstar Direct.
Click here for information on the ETF following TETF Index
FOR FINANCIAL PROFESSIONAL USE ONLY  
This information provided to the recipient by Toroso Investments, LLC (“
Toroso”) is intended for use only by the persons or entity to which it was furnished. This information may not be distributed, reproduced or used without the express consent of Toroso. This material has been prepared by Toroso for informational purposes only. Although much of the data underlying the information presented has been obtained from sources (e.g., Morningstar and Solactive AG) believed to be reliable; the accuracy and completeness of such information cannot be guaranteed.

DISCLAIMER
This document does not constitute an offer to sell or the solicitation of an offer to buy any security or investment product and should not be construed as such. Any investment strategy that follows the
Toroso Industry ETF Index (“TETF.Index”) may not be suitable for all types of clients. All investing involves risk including the possible loss of all amounts invested. Prospective clients should not rely solely on this information in making a
decision, but should make an independent review of all available facts and information regarding investments following the TETF.Index, including the economic benefits and risks of pursuing any strategies mentioned.  Any investment decision should be based on their individual circumstances. Registration with the SEC does not imply a certain level of skill or training.

DISCLOSURES
Any investment strategy that follows the TETF.
Index may be subject to underlying expenses, which generally include investment management fees paid to the investment adviser, trading and transaction fees and other expenses such as custody and clearing which are incurred in the management of investment portfolios. 
Copyright © 2018 Toroso, All rights reserved.

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