Global ETFs ETPs

ETPs AUM Lead Over Hedge Funds Is Now At $1.70 Trillion

ETFGI reports assets invested in the global ETF industry extended lead over hedge fund industry to US$1.70 trillion at the end of Q1 2018

LONDON — June 1, 2018 — ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in the global ETF/ETP industry extended their lead over assets invested in the global hedge fund industry to US$1.70 trillion at the end of Q1 2018, an increase of 4.91% over the gap at the end of Q4 2017. (All dollar values in USD unless otherwise noted.)

Q1 hedge fund letters, conference, scoops etc, Also read Lear Capital: Financial Products You Should Avoid?

Highlights

  • Assets invested in global ETF/ETP industry extend lead over assets in global hedge fund industry to $1.70 Tn at the end of March 2018
  • Record $4.92 Tn invested in 7,389 ETFs/ETPs listed globally at the end of March 2018
  • Record $3.22 Tn invested in 8,379 hedge funds globally at the end of March 2018
  • 1.74% growth in assets invested in ETFs/ETPs over Q1 2018 outpaces 0.13% growth in assets in hedge funds over the same period. In contrast, growth over Q1 2017 was 10% and 2%, respectively

According to ETFGI’s analysis a record $4.92 Tn were invested in 7,389 ETFs/ETPs listed globally at the of Q1 2018, representing growth in assets of 1.74% over the quarter. Over the same period assets invested in hedge funds globally grew by only 0.13%, to a record $3.22 Tn in 8,379 hedge funds, according to a report by Hedge Fund Research.

Assets invested in the global ETF/ETP industry first surpassed those invested in the hedge fund industry at the end of Q2 2015, as ETFGI had forecasted. Growth in assets in the ETF/ETP industry has outpaced growth in the hedge fund industry since the financial crisis in 2008.

Growth in global ETF/ETP and global hedge fund assets, as at end of March 2018

Global ETFs ETPs

In Q1 2018 the performance of the HFRI Fund Weighted Composite Index was 0.14%; higher than the -0.76% return of the S&P 500 Index. This is the first time, in the past seven years, that the performance of the HFRI Fund Weighted Composite Index was higher than the return of the S&P 500 Index.

Annual returns of the HFRI Fund Weighted Composite Index and the S&P 500 Index

Global ETFs ETPs

During the first quarter of 2018, ETFs/ETPs listed globally gathered $137 Bn in net inflows, according to ETFGI’s Global ETF and ETP industry insights report. In contrast, HFR reported that net inflows of $1.10 Bn into hedge funds over the same period. March 2018 also marked the 50th consecutive month of net inflows into ETFs/ETPs.

Net New Asset (NNA) flows into ETFs/ETPs and hedge funds globally, as at end of March 2018

Global ETFs ETPs

Sources: Hedge Fund Research HFR, ETFGI

The majority of net inflows can be attributed to the top 20 ETFs by net new assets, which have collectively gathered $73.7 Bn year-to-date. The iShares Core MSCI EAFE ETF (IEFA US) on its own accounted for net inflows of $14.6 Bn.

Top 20 ETFs by net new assets: Global

Global ETFs ETPs

Source: ETFGI data sourced from ETF/ETP sponsors, exchanges, regulatory filings, Thomson Reuters/Lipper, Bloomberg, publicly available sources and data generated in-house.

Please contact deborah.fuhr@etfgi.com if you would like to discuss the cost to subscribe to any of ETFGI’s research or consulting services.

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