Global ETFs And ETPs

ETFs Gather A Total Of $516B In New Flows For 2018 Amid 59th Consecutive Months Of Net Inflows

ETFGI reports ETFs and ETPs listed globally gather net inflows of US$76.24 billion during December 2018, 2nd Highest on record

Q3 hedge fund letters, conference, scoops etc

LONDONJanuary 10, 2018 — ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that ETFs and ETPs listed globally gathered net inflows of US$76.24 Bn during December. Despite the turmoil witnessed in developed markets during December, ETFs and ETPs listed globally attracted the 2nd highest net inflow on record, rivalled only by January 2018, which saw inflows of US$105.70 Bn. Total Assets invested in the global ETF and ETP industry fell 5.28% by the end of December, from US$5.06 Tn at the end of November, to US$4.79 Tn, according to ETFGI’s December 2018 Global ETF and ETP industry landscape insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted, current figures are based on preliminary data)

Highlights

  • Net new assets gathered by ETFs/ETPs listed globally were $76.24 Bn in December, 2nd highest on record.
  • During 2018, ETFs/ETPs listed Globally attracted $516 Bn in net inflows, less than the $654 Bn gathered in 2017.
  • 59th consecutive months of net inflows into ETFs/ETPs listed globally.

“The end of 2018 saw the trend in developed markets reverse, and although arguably predictable, the severity left many pundits scratching their heads. This end of year stress has widely been attributed to the disruption caused by trade disputes feeding into economic data, and the view policy makers are not going to be quite as accommodating as initially expected. The S&P 500 returned -9.03% during December, and down -4.38% for 2018.   Developed markets ex-US fell -4.62% during December, led by Japan and Canada, bringing the yearly return to -13.21%. Relatively speaking, EM and FM faired the month better, returning -2.68% and -3.15%, finishing 2018 -13.53% and -11.82%, respectively” according to Deborah Fuhr, managing partner and  founder of ETFGI.

Throughout 2018, the global ETF/ETP industry has continued to grow. January 2018 saw the largest monthly inflow into ETFs/ETPs on record, pushing assets above $5 Tn for the first time. The record for assets invested in ETFs/ETPs was set in September 2018 at $5.26 Tn, marking an 8.6% increase over 2017. However, with most major indices finishing the year in the red, assets invested in the global ETF/ETP industry finished 2018 down, albeit only 0.6%, supported by consistent positive inflows.

At the end of December 2018, the Global ETF/ETP industry had 7,657 ETFs/ETPs, with 14,993 listings, assets of $4.79 Tn, from 401 providers listed on 71 exchanges in 57 countries. Following net inflows of $76.24 Bn and market moves during the month, assets invested in ETFs/ETPs listed globally decreased by 5.28%, from $5.06 Tn at the end of November 2018, to $4.79 Tn.

Growth in Global ETF and ETP assets as of the end of December 2018

Global ETFs And ETPs

Equity ETFs/ETPs listed globally attracted net inflows of $50.87 Bn in December, growing net inflows for 2018 to $362 Bn, less than the $471 Bn in net inflows seen by equity-based products during 2017. Fixed Income ETFs and ETPs listed globally saw net inflows of $21.17 Bn in December, bringing net inflows for 2018 to $107 Bn, less than the $142 Bn seen during 2017.

December marked the 59th consecutive month of net inflows into ETFs/ETPs listed globally, for 2018 ETFs/ETPs listed globally have seen inflows of $516 Bn, less than the $654 Bn in net inflows gathered in 2017.

Substantial inflows during December can be attributed to the top 20 ETFs by net new assets, which collectively gathered $40.79 Bn. The iShares 1-3 Year Treasury Bond ETF (SHY US) gathered $3.36 Bn, the largest net inflow in December.

Top 20 ETFs by net new assets December 2018: Global

NameTickerAssets
(US$ Mn)
Dec-18
ADV
(US$ Mn)
Dec-18
NNA
(US$ Mn)
YTD 2018
NNA
(US$ Mn)
Dec-18
iShares 1-3 Year Treasury Bond ETFSHY US20,6244319,2883,357
iShares Short Treasury Bond ETFSHV US20,69034612,6723,340
iShares Core U.S. Aggregate Bond ETFAGG US57,0787515,5592,669
iShares Russell 1000 Value ETFIWD US37,6317405812,544
iShares Core S&P 500 ETFIVV US147,5402,06118,5922,470
Reliance CPSE ETFCPSEBE IN4,063222,3442,344
Vanguard Short-Term Bond ETFBSV US27,9453114,1492,332
iShares Russell 1000 ETFIWB US17,920436(1,483)2,205
TOPIX Exchange Traded Fund1306 JP71,1672622,2882,166
Vanguard FTSE Developed Markets ETFVEA US65,1451,3479,6392,080
Vanguard Total Stock Market ETFVTI US93,5779399,8481,987
iShares MSCI ACWI ETFACWI US10,6045432,8971,931
SPDR Bloomberg Barclays 1-3 Month T-Bill ETFBIL US8,6681976,7241,696
iShares MSCI USA Minimum Volatility ETFUSMV US18,9973784,2231,638
iShares MSCI ACWI ex U.S. ETFACWX US4,7832312,0981,466
iShares MSCI EAFE ETFEFA US62,0593,386(10,621)1,419
Daiwa ETF TOPIX1305 JP34,176611,1661,355
SPDR S&P Dividend ETFSDY US16,3561698361,309
Listed Index Fund TOPIX1308 JP31,76559,1981,264
iShares National Muni Bond ETFMUB US11,8622032,4331,213

The top 10 ETPs by net new assets collectively gathered $3.84 Bn by the end of December 2018.

Top 10 ETPs by net new assets December 2018: Global

Name      TickerAssets
(US$ Mn)
Dec-18
ADV
(US$ Mn)
Dec-18
NNA
(US$ Mn)
YTD 2018
NNA
(US$ Mn)
Dec-18
SPDR Gold SharesGLD US31,5181,010(1,815)1,057
iShares Physical Gold ETCSGLN LN4,35031,170635
NH QV KOSPI Volatility Matching Strangle ETN 57550057 KS6290623623
Invesco Gold ETCSGLD LN4,9325315363
iShares Gold TrustIAU US11,5451581,599345
ETFS Physical GoldPHAU LN6,6628536295
VelocityShares 3x Long Crude Oil ETNUWT US393130514224
Xtrackers Physical Gold ETC (EUR)XAD5 GY2,53611,884110
Xtrackers Brent Crude Oil Booster Euro Hedged ETCXETC GY248114297
ProShares Ultra DJ-UBS Crude OilUCO US35164(45)92

Investors have tended to invest in short duration fixed income, market cap and lower cost ETFs in December.

Article by ETFGI

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