Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
ThinkAdvisor

Portfolio > ETFs

ETF Juggernaut Just Keeps Gathering Assets

X
Your article was successfully shared with the contacts you provided.

Assets invested in U.S.-listed exchange-traded funds and products increased by 21.2% in the first eight months of the year, setting another record of nearly $3.1 trillion, according to ETFGI, a research and consultancy firm. (ETFs make up nearly $3 trillion of the total.)

ETFs and ETPs listed globally increased by 35.5% in the January-to-August period to reach a new record of $4.8 trillion. August net flows were positive for the 43rd consecutive month.

In August, U.S.-listed ETFs and ETPs gathered $24.2 billion in net inflows, bringing year-to-date net inflows to $299.6 billion, compared with $138.9 billion at the same point last year, and $20.9 billion more than gathered in all of 2016.

“August is typically a challenging month for equity markets with the average loss over the past 20 years for the S&P 500 at 1.3%,” ETFGI managing partner Deborah Fuhr said in a statement.

Fuhr noted that in August, the S&P 500 was up 0.3% and 11.9% year to date; MSCI All Country World was up 0.4% and 15.5% year to date; and MSCI Emerging Markets was up 2.3% and 28.6%.

“Storms and political risks remain a focus for investors — the ability of the Trump administration to move forward on policy goals and hearings on Capitol Hill, Brexit negotiations, and North Korea is still an area of concern,” she said.

A recent study showed that individual investors’ adoption of ETFs was on track for explosive growth, led by millennials.

The U.S. industry currently has 2,044 funds and products from 114 providers on four exchanges. The global sector has 7,019 funds and products with 13,199 listings from 331 providers listed on 70 exchanges in 56 countries.

Following is a breakdown of August net inflows for U.S. and global ETFs/ETPs:

Equity

  • U.S.: August, $10.2 billion; YTD, $204.9 billion
  • Global: August, $23.5 billion; YTD, $295.7 billion

Fixed income

  • U.S.: August, $8.6 billion; YTD, $81.6 billion
  • Global: August, $11.2 billion; YTD, $107.3 billion

Commodity

  • U.S.: $1.6 billion; YTD, $1.9 billion
  • Global: $1.4 billion; YTD, $5.6 billion

ETFGI’s report noted that commodity net inflows were substantially below the same eight-month period last year: U.S., $20.7 billion; global, $33.7 billion.

For the year to date, iShares claimed the largest investor flows for both U.S. and global ETFs/ETPs: $142.2 billion and $172.6 billion. Vanguard followed, with $95.3 billion of net flows to U.S.-listed funds and $101.8 billion to globally listed ones.

— Check out How Advisors Are Building Portfolios With ETFs on ThinkAdvisor.


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.