Global ETF and ETP assets continue to surge

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

Global exchange-traded fund (ETF) and exchange-traded product (ETP) assets hit yet another record high at the end of November, as the combination of $17.0 billion in net inflows and positive market performance pushed assets to $2.4 trillion, according to preliminary findings from ETFGI, a London-based consultancy.

Global ETF and ETP assets continue to surge

The combination of $17.0 billion in net inflows and positive market performance pushed assets in the global ETF/ETP industry to a new record high of $2.4 trillion at the end of November 2013, according to data from ETFGI.

Despite the impressive monthly net inflow, the figure was weaker than the $32.6 billion of net inflows in October and the $35.7 billion net inflows in September.

Deborah Fuhr, Managing Partner at ETFGI, commented: “Rising levels of uncertainty as to when and how the Federal Reserve will taper its quantitative easing scheme has contributed to the weaker inflows into ETFs/ETPs in November.”

Equity ETFs/ETPs gathered the largest net inflows with $18.2 billion, followed by fixed income ETFs/ETPs with $1.1 billion, while commodity ETFs/ETPs experienced the largest net outflows with $1.7 billion.

Year to date (YTD) through end of November 2013, global ETF/ETP assets have risen by 21% based on positive market performance and net inflows of $220.6 billion, which is in line with the net inflows at this time in 2012.

YTD, equity ETFs/ETPs have gathered the largest net inflows with $213.5 billion, which is significantly higher than the $124.4 billion at this point in 2012. Fixed income ETFs/ETPs have been the second most popular asset class, though net inflows of $22.4 billion YTD are lagging behind the $61.6 billion gathered YTD in 2012. Commodity ETFs/ETPs have so far experienced net outflows in 10 of the 11 months of 2013, with year to date net outflows reaching $34.7 billion at the end of November. This is in contrast to net inflows of $22.4 billion at this point in 2012.

Equities have been the preferred area to allocate assets during 2013 with net inflows of $213.5 billion. North American/US equity ETFs/ETPs gathered the largest net inflows YTD with $127.4 billion, followed by developed Asia Pacific/Japan equity ETFs/ETPs with $35.5 billion, and developed European equity ETFs/ETPs with $24.7 billion, while emerging market equity ETFs/ETPs have experienced YTD net outflows of $9.8 billion.

In terms of ETF/ETP providers, iShares ranks first YTD with net inflows of $57.3 billion. Vanguard is second with $55.7 billion, WisdomTree is third with $13.6 billion, PowerShares is fourth with $13.3 billion and SPDR is fifth with $11.5 billion.

Active ETFs/ETPs, which are actively managed and not directly linked to an underlying index, are still a very small segment of the industry with 126 products holding combined assets of $20.9 billion, accounting for less than 1% of total ETF/ETP assets invested worldwide.

Many existing ETF managers as well as traditional active mutual fund managers have made filings with the SEC hoping to offer non-transparent active ETFs and exchange-traded managed funds (ETMFs). The SEC is said to be discussing these proposals which in some cases have been with the SEC for over five years.

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