ETP inflows tear up record book

Jun 6th, 2013 | By | Category: ETF and Index News

For providers of exchange-traded products (ETPs), 2013 is fast becoming a vintage year. Year-to-date net inflows reached a record $107 billion through the end of May 2013, a whopping 31% higher than the $82 billion seen during the same period last year, according to data from ETFGI, a London-based consultancy.

ETP inflows tear up record book

Global ETP assets have reached an all-time high of $2.14 tn.

When added to the existing ETP pile, total assets under management (AUM) in the industry now stand at a new all-time high of $2.14 trillion.

There are now some 4,849 ETPs (as mix of ETFs, ETCs and ETNs), with 9,875 listings, from 211 providers, listed across 56 exchanges around the world.

In May, ETPs received $24.3 billion in net inflows. This was made of up of $25 billion in net inflows for equity products, $3.1 billion for fixed income products, and $6.7 billion in net outflows for commodity products, led most notably by gold, which lost around £6 billion.

Within the equity space, products with US/North American exposures gathered $16 billion in net inflows, followed by developed Asia Pacific with $8.9 billion, and global equity with $2.1 billion. Equity ETPs offering exposure to emerging markets experienced net outflows of $4.3 billion.

Despite the strong flows into equity products, fixed income inflows held up, gathering $3.1 billion during the month. This was composed of $2.2 billion of net inflows into corporate bond products, followed by government bonds with $1.6 billion, while inflation-linked products experienced net outflows of $839 million.

Spoiling the party slightly were commodities, which experienced net outflows of $6.7 billion. ETPs linked to precious metals, particularly gold, accounted for the majority ($6.3 billion) of these outflows.

In terms of individual ETP providers, the big winners in May were Vanguard, Daiwa and SPDR, which gathered net new assets of $4.5 billion, $4.4 billion and $4.4 billion respectively, followed by WisdomTree with $3.1 billion. Daiwa and WisdomTree benefited from their Japan products, which did well on the back of demand for Japanese equities.

Globally, iShares remains the largest ETP provider with assets of $820 billion, equivalent to a market share of 38.4%. However, the BlackRock subsidiary only ranked fifth in terms of net inflows in May, with $2.4 billion.

SSgA’s SPDR is the second largest ETP provider with $365 billion and 17.1% market share, followed by Vanguard with $290 billion and 13.6% market share. PowerShares takes the fourth spot with $74 billion and 3.5% market share, followed by Deutsche Bank’s db X-trackers platform with $69 billion.

These top five ETP providers account for 76% of global ETF and ETP assets.

In terms of index providers, S&P Dow Jones has the largest amount of ETP assets tracking its benchmarks with $573 billion, reflecting 26.9% market share; MSCI is second with $340 billion and 16.0% market share, followed by Barclays, known for its fixed income indices, with $194 billion and 9.1% market share.

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