U.S. ETFs Gain Assets In October Thanks To Fixed Income – ValueWalk Premium
U.S. ETFs- ETPs

U.S. ETFs Gain Assets In October Thanks To Fixed Income

ETFGI reports ETFs and ETPs listed in the US gather net inflows of US$6.40 Bn during October 2018

Q3 hedge fund letters, conference, scoops etc

LONDONNovember 20, 2018 — ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that ETFs and ETPs listed in the US gathered net inflows of US$6.40 Bn during October. Following a turbulent month for financial markets, total assets invested in the US ETF and ETP industry fell 6.24% during October, from US$3.73 Tn at the end of September, to US$3.50 Tn, according to ETFGI’s October 2018 US ETF and ETP industry landscape insights report, an annual paid-for research subscription service.  (All dollar values in USD unless otherwise noted.)

Highlights

  • Total Assets in ETFs and ETPs listed in the US decline 6.24% to $3.50 Tn in October.
  • Net new assets gathered by ETFs/ETPs listed in the US were $6.40 Bn in October.
  • Equity-based products saw the largest inflows, while fixed income-based products saw the greatest outflows during October.  

“Few markets managed to avoid the October sell off, as investors grew jittery at the prospects of further rate hikes from the US treasury and any hope of resolutions to trade disputes appeared to be diminishing, be it in Europe or the US. Developed and developing markets saw similar declines during the month. Aside from the US, where strong year-to-date performance cushioned the fall, October pushed many indices deeper into negative territory for the year. The S&P 500 fell 6.84% over the month, retaining a 3.1% gain year-to-date, while European markets fell 7.82%, bringing year-to-date decline to 9.56%. EM markets down 7.60% and Frontier markets down 3.36%, bringing year to date declines to 15.07% and 10.68%, respectively.” according to Deborah Fuhr, managing partner and a founder of ETFGI.

At the end of October 2018, the US ETF/ETP industry had 2,012 ETFs/ETPs, assets of $3.50 Tn, from 145 providers listed on 3 exchanges. Following net inflows of $6.40 Bn and market moves during the month, assets invested in ETFs/ETPs listed in the US decreased by 6.24%, from $3.73 Tn at the end of September 2018, to $3.50 Tn.

Growth in US ETF and ETP assets as of the end of October 2018

U.S. ETFs- ETPs

Equity ETFs/ETPs listed in the US attracted net inflows of $6.05 Bn in October, growing net inflows for 2018 to $144 Bn, less than the $263 Bn in net inflows at this point last year. Fixed Income ETFs and ETPs listed in the US saw net outflows of $4.84 Bn in October, bringing net inflows for 2018 to $51 Bn, considerably less than the $103 Bn in net inflows at this point last year.

October saw the average daily trading volume (ADV) rise to $150 Bn, the highest for US listed ETFs/ETPs since ETFGI’s records began in 2011. October’s ADV figure is 25% higher from the previous record of $120 Bn seen in February 2018.

Substantial inflows during October can be attributed to the top 20 ETFs by net new assets, which collectively gathered $25.6 Bn.  The iShares Core S&P 500 ETF (IVV US) gathered $4.64 Bn, the largest net inflow in October.

Top 20 ETFs by net new assets October 2018: US

Name Ticker Assets
(US$ Mn)
Oct-18
ADV
(US$ Mn)
Oct-18
NNA
(US$ Mn)
YTD 2018
NNA
(US$ Mn)
Oct-18
iShares Core S&P 500 ETF IVV US 156,359 1,703 15,205 4,643
Vanguard S&P 500 ETF VOO US 99,362 1,124 14,506 2,071
Communication Services Select Sector SPDR Fund XLC US 3,707 258 3,879 1,848
SPDR Bloomberg Barclays 1-3 Month T-Bill ETF BIL US 5,320 214 3,367 1,776
iShares Core MSCI Total International Stock ETF IXUS US 11,782 112 4,851 1,762
iShares MSCI Japan ETF EWJ US 16,746 878 (536) 1,721
iShares 1-3 Year Treasury Bond ETF SHY US 15,098 275 3,889 1,345
ProShares UltraPro QQQ TQQQ US 4,184 1,251 1,414 1,295
JPMorgan Ultra-Short Income ETF JPST US 3,361 73 3,252 928
iShares Short Treasury Bond ETF SHV US 15,635 195 7,599 916
iShares Russell 1000 Value ETF IWD US 36,585 393 (3,481) 896
Vanguard FTSE Developed Markets ETF VEA US 65,974 698 6,343 849
Vanguard Total Stock Market ETF VTI US 98,508 703 6,822 848
iShares MSCI USA Minimum Volatility ETF USMV US 17,037 230 1,437 787
iShares Edge MSCI USA Quality Factor ETF QUAL US 6,937 99 2,618 706
Goldman Sachs TreasuryAccess 0-1 Year ETF GBIL US 2,619 43 1,766 695
JPMorgan BetaBuilders Canada ETF BBCA US 2,045 33 2,174 664
iShares J.P. Morgan USD Emerging Markets Bond ETF EMB US 14,744 423 3,831 646
Vanguard Value ETF VTV US 42,547 285 6,469 621
iShares MSCI ACWI ETF ACWI US 8,883 360 523 616

Similarly, the top 10 ETPs by net new assets collectively gathered $1.18 Bn by the end of October 2018.

Top 10 ETPs by net new assets October 2018: US

Name        Ticker Assets
(US$ Mn)
Oct-18
ADV
(US$ Mn)
Oct-18
NNA
(US$ Mn)
YTD 2018
NNA
(US$ Mn)
Oct-18
SPDR Gold Shares GLD US 28,570 1,248 (3,181) 475
iShares Gold Trust IAU US 10,645 195 1,284 198
VelocityShares 3x Long Crude Oil ETN UWT US 215 111 (21) 107
Large Cap Growth Index-Linked ETN due 2028 FRLG US 378 5 415 85
VelocityShares Daily 3x Inverse Natural Gas ETN DGAZ US 451 198 382 75
Invesco DB Commodity Index Tracking Fund DBC US 2,523 42 227 69
FI Enhanced Global High Yield ETN FIHD US 1,428 5 423 46
United States Oil Fund LP USO US 1,609 403 (716) 45
SPDR Gold MiniShares Trust GLDM US 272 4 248 38
VelocityShares Daily 3x Long Natural Gas ETN UGAZ US 427 107 (784) 37

Investors have tended to invest in core, market cap and lower cost ETFs in October.

Please contact [email protected] if you would like to discuss the cost to subscribe to any of ETFGI’s research or consulting services.


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