Asia Pacific ex-Japan ETF assets up in 2017, but inflows subdued

Jan 23rd, 2018 | By | Category: ETF and Index News

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Assets invested in ETFs and ETPs listed in Asia Pacific ex-Japan increased by $40.2 billion (31.4%) during 2017, over triple the previous record of $12.5bn set in 2016, to reach a new high of $170.3bn at the end of December, according to ETF industry consultant ETFGI.

Asia Pacific ex-Japan ETF assets up but net inflows subdued during 2017

Assets under management in ETFs/ETPs listed in Asia Pacific (ex-Japan), as of the end of December 2017, amounted to $170.3bn.

The increase of 31.4%, from $129.6bn at the end of 2016, also represents the greatest growth in assets since 2009 when markets recovered following the 2008 financial crisis.

The region saw net inflows of just $6.5bn during the year (down 45.8% on 2016), however, with the remaining growth in AUM coming from market performance owing to benign upwards-trending capital markets.

Contrary to ETF asset flows in most other regions globally – which have in some instances chalked up several years of consecutive monthly net inflows – December 2017 marked only the second month in a row for positive organic growth for ETFs/ETPs listed in Asia Pacific (ex-Japan), with $2.7bn gathered during the month.

Equity ETFs/ETPs listed in the region saw net inflows of $4.0bn in December, taking net inflows for 2017 full-year to $5.1bn. Fixed Income ETFs and ETPs experienced net outflows of $1.4bn in December, bringing net outflows for 2017 to $1.2bn.

The top 20 ETFs by net new assets collectively gathered $11.9bn during 2017, with the Bharat 22 ETF (BHART22 IN) topping the list with $1.4bn.

The top ten ETPs (i.e. mainly commodity products) by net new assets collectively gathered $365.0 million with the ETFS Physical Gold (GOLD AU) accumulating $83m.

Source: ETFGI.

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