The $7.4 Trillion ETF Industry Is Littered With One-Hit Wonders

At least 28 firms — that run eight funds or more — have a minimum of 40% of their entire asset base in a single product, according to data compiled by Bloomberg Intelligence. Heavyweights including Invesco Ltd., ARK Investment Management and Pacific Investment Management Co. are among the managers with the most concentrated lineups.

“It’s about being able to weather different storms,” said BI’s Athanasios Psarofagis. “You’re really dependent on one product, and if, for whatever reason, that product is in a model and everyone is flocking into it, and all of a sudden that trade flips, do you have something else to counter that weight?”

Another example is Pacer ETFs, which runs more than 40 funds. It has roughly 55% of its assets under management with the $14 billion Pacer US Cash Cows 100 ETF . The company didn’t return a request for comment.Perhaps the poster child is the ARK Innovation ETF , which is carrying 52% of the firm’s entire asset base. The fund at its height in 2021 had more than $28 billion in assets, a number that’s been reduced to around $7 billion.

“They’re going to be worried — they’re going to raise their eyebrows if they think there’s a risk that you’re going to be a one-trick pony,” Johnson said.

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