Global ETFs Industry Increase The Lead Over Global Hedge Fund Industry

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ETFGI reports assets invested in the global ETFs industry increase the lead over global hedge fund industry to US$4.39 trillion at the end of 2020

Q4 2020 hedge fund letters, conferences and more

LONDON — March 29, 2021 — ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reported today that assets invested in the global ETFs and ETPs industry extended the lead over the global hedge fund industry to US$4.39 trillion at the end of 2020, an increase of 44.95% since 2019. (All dollar values in USD unless otherwise noted.)

Highlights

  • Assets invested in global ETFs and ETPs industry increase the lead over assets in global hedge fund industry to $4.39 trillion at the end of 2020.
  • In 2020 the HFRI Fund Weighted Composite Index was up 11.74%, while the S&P 500 Index with dividends was up 18.39%
  • Hedge funds gathered net inflows of $3 Bn in Q4 while ETFs/ETPs gathered net inflows of $258.3 Bn.

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. According to ETFGI’s analysis $7.99 trillion were invested in 8,607 ETFs/ETPs listed globally at the of 2020, representing an increase in assets of 15.96% over the quarter. Over the same period assets invested in hedge funds globally increased by 8.76%, to $3.6 trillion in
8,042 hedge funds, according to a report by HFR.

During the fourth quarter of 2020 ETFs/ETPs listed globally gathered $258.3 billion in net inflows, according to ETFGI’s Global ETF and ETP industry insights report. In contrast, HFR reported that hedge fund saw net inflows of $3 billion in Q4 2020.

Growth in global ETF/ETP and global hedge fund assets, as at end of December 2020

ETFs

source

In Q4 2020 the performance of the HFRI Fund Weighted Composite Index was up 10.81%, while the S&P 500 Index with dividends increased 12.14%. Year to date, the HFRI Fund Weighted Composite Index was up 11.74%, while the S&P 500 Index with dividends has increased 18.39%.

Article by ETFGI

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