2022 saw a new record in off-exchange trading of US ETFs.
Part of a broader trend where trading off-exchange in US equities went from 35% in 2015 to 43% last year.
Yet, as the FT Alphaville article notes, “ETF shift from lit to off-exchange trading has actually been even starker than it has for equities as a whole“.
It looks at TSR (Total Shareholder Return) over a 5-year period (2013-2017) across industries.
“The median TSR of the top ten companies in each industry was higher than the industry’s median by 9 percentage points (in insurance) and 32 percentage points (in media and publishing as well as metals).“
“The lesson is this: being in a sector whose market performance is below average is no excuse. TSR is a relative—as well as an absolute—metric, so whether an industry is under pressure or accelerating, every company has the opportunity to outperform its peers.”
