14th May 2020
Defiance ETFs is another small player finding its footing with its strong next-gen thematic investing vein. The firm has seen more than $123 million in net asset inflows, which may seem little relative to the bigger players, but it amounts to 66% asset growth from year-end 2019. Defiance is behind three ETFs, the biggest being the Defiance Next Gen Connectivity ETF (FIVG). The firm today manages about $300 million in total assets.
At face value, it’s hard to get too excited about millions in net inflows when a firm like Vanguard has picked up more than $53 billion in net creations in the first four months of the year. But to a firm like Vanguard, those massive net inflows amount to a 4.7% asset growth rate from year-end 2019 levels—Defiance has grown more than 10x that this year in percentage terms.
Being a small ETF issuer in a market dominated by a handful of giants is not easy, but it can be done. As long as the smaller players bring out their best ideas, and get out there selling them with conviction, diversification in the ETF industry lives on, even if in a top-heavy game.