ETF classification: Categories, Focuses, and Niches


The classification of ETFs (Exchange-Traded Funds) is a way to organize these funds based on various characteristics. Typically, the classification occurs on several levels: asset class, category, focus, and niche. Let's look at each of these in more detail:

Asset class: This is the most general level that determines the type of investments the fund trades in. Examples of asset classes include equities (stocks), bonds, real estate, and commodities.

Category: At this level, funds are divided into subgroups within their asset class. For example, within the "equities" asset class, categories might include sectors (technology, healthcare, etc.), company size (large, medium, small), and style (growth, value).

Focus: This level considers more specialized characteristics. If, for example, an ETF invests in technology stocks, its focus could be on specific sub-sectors like AI or cybersecurity.

Niche: This is the most specific level of classification. Funds in this category usually focus on very narrow and specialized market segments. For example, an ETF may invest only in companies involved in developing electric vehicles.

Asset class

Category

Focus

Niche

Equity

Sector

Communication services

Media & entertainment

Interactive Media & Services

Broad-based

Consumer discretionary

Automobile manufacturers

Hotels, restaurants & leisure

Hotels, resorts & cruise lines

Casinos & gaming

Broadline retail

Broad-based

Consumer staples

Food, beverage & tobacco

Broad-based

Energy

Energy equipment & services

MLPs

Oil & gas equipment & services
Oil & gas exploration & production
Oil & gas refining & marketing
Oil, gas & consumable fuels

Broad-based

Financials

Asset management & custody banks
Banks
Capital markets
Diversified Banks
Financial Exchanges & Data
Financial services
Insurance
Mortgage REITs
Property & casualty insurance
Regional banks
Transaction & payment processing services
Broad-basedFinancials
Health care
Biotechnology
Health care equipment
Health care equipment & services
Health care equipment & supplies
Health care providers & services
Health care technology
Life sciences tools & services
Pharma, biotech & life sciences
Pharmaceuticals
Broad-based
Industrials
Aerospace & defense
Auto
Construction & engineering
Passenger airlines
Passenger ground transportation
Transportation
Broad-based
Information technology
Application software
Communications equipment
Internet services & infrastructure
Semiconductors
Software
Software & services
Broad-based
Materials
Copper miners
Diversified metals & mining
Gold miners
Metals & mining
Silver miners
Steel producers
Broad-based
Real estate
Industrial REITs
Specialized REITs
REITs
Broad-based
Utilities
Electric Utilities
Broad-based
Theme
5G
Agriculture
Big Tech
Blockchain
Broad technology
Broad thematic
Cannabis
Consumer
Cybersecurity
Digital economy
Environment
FinTech
Genomic advancements
Housing
Infrastructure
Internet
Low carbon
Millennials
Mobility
Natural resources
Nuclear energy
Remote work
Renewable energy
Robotics
Robotics & AI
Space
Telecoms
Timber
Video games & eSports
Water
Size and style
Extended market

Growth

Value

Broad-based

Micro cap
Small cap
Mid cap
Large cap
Total market
High dividend yield
High dividend yield
Broad-based
Fixed income
Broad market, asset-backed

Broad credit

High yield

Investment grade

Broad maturities

Floating rate

Intermediate

Long-term

Short-term

Ultra-short term

Broad market, broad-based
Corporate, asset-backed
Corporate, bank loans
Corporate, broad-based
Corporate, convertible
Corporate, preferred
Government, agency
Government, broad-based
Government, inflation-linked
Government, local authority/municipal
Government, mortgage-backed
Government, non-native currency
Government, treasury
Commodities
Agriculture
Broad market

Broad maturities

Extended term

Front month

Intermediate

Laddered

Optimized

Physically held

Variable

Cocoa
Coffee
Corn
Cotton
Grains
Lean hogs
Live cattle
Livestock
Softs
Soybean oil
Soybeans
Sugar
Wheat
Broad market
Broad market
Broad market ex agriculture
Energy
Broad market
Carbon credits
Crude oil
Energy, Electricity
Gasoline
Heating oil
Natural gas
Petroleum
Industrial metals
Aluminium
Broad market
Copper
Lead
Nickel
Tin
Zinc
Metals
Broad market
Precious metals
Broad market
Gold
Palladium
Platinum
Rhodium
Silver
Currency
Basket

Rules for currency pairs:

One currency long, the other short.

""Basket"" for currency baskets.

Currencies denoted by ISO codes.

Examples:

Long Bitcoin, short USD

Long USD, short EUR

Long G10 basket, short USD

Derivative

In specie

Pair
Asset allocation
Asset allocation
Target date

Specified Year, examples:

2030

2045

Target outcome
Capital appreciation
Income
Income & capital appreciation
Target risk
Aggressive
Conservative
Moderate
Moderately aggressive
Alternatives
Hedge fund strategies
Global macro
Managed futures
Risk parity
Risk premia
Long/short
Event-driven
Long/short
Market neutral
Merger arbitrage
Multi-strategy
Absolute return
Multi-strategy
Tactical tools
Spreads
Long/short volatility
Inflation
Volatility
S&P 500
S&P 500 mid-term
S&P 500 short-term
Trend-following