Assets invested in active exchange-traded funds and products and in their smart beta counterparts showed the greatest annual increases since 2009 when markets recovered from the financial crisis, according to ETFGI, a research and consultancy firm.
Assets in active funds and products listed globally grew by 53.4% for the year to date through November, amassing record net inflows of $23.7 billion. This investment bonanza was 141.2% more than net inflows for all of 2016, and more than double the previous year-to-date record set last year.
Total assets in active products now stand at some $69 billion.
ETFGI reported that the majority of new flows could be attributed to the top 20 ETFs by net new assets, which collectively gathered $14.1 billion during 2017. The Pimco Enhanced Short Maturity Strategy Fund (MINT US) on its own accounted for net inflows of $2.2 billion.
For the year through November, smart beta funds and products listed globally experienced record net inflows of $68.7 billion, compared with inflows of $45.9 billion for the same period in 2016, and 22% more than for all of 2016.
With November flows of $9.1 billion, global assets total some $670 billion.
The iShares Core S&P Small-Cap ETF (IJR US) accounted for net inflows of $6.5 billion for the year.
ETFGI also reported that volatility factors ETFs and ETPs saw net inflows of $1.8 billion in November, bringing year-to-date net inflows to $4.2 billion, which is less than the net inflows of $13.5 billion over the same period last year.
Multi factor products had net inflows of $1.7 billion in November, raising year-to-date net inflows to $11.2 billion, compared with $9.1 billion for the same period last year.
Equity funds and products saw net inflows of $962 million in November, bringing year-to-date net inflows to $6.3 billion, $2.5 billion ahead of net inflows over the same period last year.
Fixed income products experienced net inflows of $1.7 billion in November, bringing the year total net inflows to $16.3 billion, three times greater than last year’s net inflows.
— Check out US Stocks Will Gain, but More Slowly, in 2018, Analysts Say on ThinkAdvisor.