U.S. ETFs And ETPs

U.S. ETFs Gather $51.4 Billion In December 2018 But End Year Below Peak Of $3.73T Reached In September

ETFGI reports ETFs and ETPs listed in the US gather net inflows of US$51.4 billion during December 2018

Q4 hedge fund letters, conference, scoops etc

LONDONJanuary 25, 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$51.4 billion during December, bringing 2018 net inflows to US$315 billion. Assets invested in the US ETF/ETP industry finished the month down 5.59%, from US$3.59 Tn at the end of November, to US$3.39 Tn, according to ETFGI’s December 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

  • During 2018, ETFs/ETPs listed in the US attracted $315 Bn in net inflows.
  • Assets invested in the US ETF/ETP industry hit record high of $3.73 Tn in September 2018.
  • Assets invested in US ETF/ETP industry fell 0.95% year-on-year, hit by Q4 2018 market movements.

“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 fared 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.

At the end of December 2018, the US ETF/ETP industry had 2,241 ETFs/ETPs, a 5.91% increase over 2017, from 148 providers listed on 3 exchanges. Following net inflows of $51.4 Bn and market moves during the month, assets invested in ETFs/ETPs listed in the US decreased by 5.59%, from $3.59 Tn at the end of November 2018, to $3.39 Tn. By the end of the year, assets invested in the US ETF/ETP industry were down 0.95% compared to that of 2017, falling from $3.42 Tn to $3.59 Tn.

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

U.S. ETFs And ETPs

Equity ETFs/ETPs listed in the US attracted net inflows of $34.8 Bn in December, bringing net inflows for 2018 to $208 Bn, less than the $332 Bn in net inflows equity products attracted in 2017. Fixed Income ETFs and ETPs listed in the US saw net inflows of $14.1 Bn in December, bringing net inflows for 2018 to $75 Bn, less than the $114 Bn in net inflows seen in 2017.

Substantial inflows during December can be attributed to the top 20 ETFs by net new assets, which collectively gathered $38.3 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: US

Name Ticker Assets
(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 ETF SHY US 20,624 431 9,288 3,357
iShares Short Treasury Bond ETF SHV US 20,690 346 12,672 3,340
iShares Core U.S. Aggregate Bond ETF AGG US 57,078 751 5,559 2,669
iShares Russell 1000 Value ETF IWD US 37,631 740 581 2,544
iShares Core S&P 500 ETF IVV US 147,540 2,061 18,592 2,470
Vanguard Short-Term Bond ETF BSV US 27,945 311 4,149 2,332
iShares Russell 1000 ETF IWB US 17,920 436 (1,483) 2,205
Vanguard FTSE Developed Markets ETF VEA US 65,145 1,347 9,639 2,080
Vanguard Total Stock Market ETF VTI US 93,577 939 9,848 1,987
iShares MSCI ACWI ETF ACWI US 10,604 543 2,897 1,931
SPDR Bloomberg Barclays 1-3 Month T-Bill ETF BIL US 8,668 197 6,724 1,696
iShares MSCI USA Minimum Volatility ETF USMV US 18,997 378 4,223 1,638
iShares MSCI ACWI ex U.S. ETF ACWX US 4,783 231 2,098 1,466
iShares MSCI EAFE ETF EFA US 62,059 3,386 (10,621) 1,419
SPDR S&P Dividend ETF SDY US 16,356 169 836 1,309
iShares National Muni Bond ETF MUB US 11,862 203 2,433 1,213
Vanguard Value ETF VTV US 41,408 364 8,404 1,167
Invesco QQQ Trust QQQ US 61,146 10,455 4,409 1,156
JPMorgan BetaBuilders Europe ETF BBEU US 2,549 72 2,721 1,145
iShares Core MSCI Emerging Markets ETF IEMG US 49,202 1,402 15,738 1,142

Similarly, the top 10 ETPs by net new assets collectively gathered $2.10 Bn by the end of December 2018.

Top 10 ETPs by net new assets December 2018: US

Name Ticker Assets
(US$ Mn)
Dec-18
ADV
(US$ Mn)

Dec -18
NNA
(US$ Mn)
YTD 2018
NNA
(US$ Mn)

Dec-18
SPDR Gold Shares GLD US 31,518 1,010 (1,815) 1,057
iShares Gold Trust IAU US 11,545 158 1,599 345
VelocityShares 3x Long Crude Oil ETN UWT US 393 130 514 224
ProShares Ultra DJ-UBS Crude Oil UCO US 351 64 (45) 92
United States Oil Fund LP USO US 1,473 338 (273) 75
SPDR Gold MiniShares Trust GLDM US 397 7 355 72
FI Enhanced Global High Yield ETN FIHD US 1,391 6 528 70
United States Natural Gas Fund LP UNG US 292 137 (443) 68
iShares S&P GSCI Commodity-Indexed Trust GSG US 1,210 14 7 58
Invesco CurrencyShares Euro Currency Trust FXE US 317 31 66 44

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

Article by ETFGI


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