ETFGI reports that assets invested in Smart Beta ETFs and ETPs listed globally increased by 32.3 percent during 2017 to reach 658 billion US dollars

LONDON — January 26, 2018 — ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in Smart Beta ETFs and ETPs listed globally increased by 32.3% during 2017 to reach a new high of US$658.35 Bn at the end of December. (All dollar values in USD unless otherwise noted.)
 
Highlights

  • Assets invested in Smart Beta ETFs/ETPs listed globally increased by a record $ 160.61 billion during the year, to reach a new high of $658.35 billion
  • Year-to-date, through end of December 2017, Smart Beta ETFs and ETPs listed globally saw net inflows of $71.75 Bn.
  • Assets in market cap ETFs increased by 40.3% in 2017 which is significantly more than the 32.3% increase in Smart Beta assets.

According to ETFGI’s December 2017 Global Smart Beta ETF and ETP industry insights report, an annual paid-for research subscription service, assets invested in Smart Beta ETFs/ETPs listed globally grew by a record US$160.61 Bn during 2017, almost double the previous record of US$87.41 Bn set in 2016. The increase of 32.3%, from US$497.74 Bn at the end of 2016, also represents the greatest growth in assets since 2009 when markets recovered following the 2008 financial crisis.




This record was achieved on the eve of another milestone for the ETF industry: the 25th anniversary of the listing of the first ETF in the US, the venerable SPDR S&P 500 ETF (SPY US), on 22nd January 1993. At the end of 2017, SPY on its own accounted for assets of US$271.39 Bn.

December 2017 marked the 23rd consecutive month of net inflows into Smart Beta ETFs/ETPs listed globally, with US$8.45 Bn gathered during the month. During 2017 Smart Beta ETFs/ETPs listed globally saw net inflows of US$71.75 Bn; 33.2% more than net inflows for 2016.
 
The majority of these flows can be attributed to the top 20 Smart Beta ETFs by net new assets, which collectively gathered US$30.92 Bn during 2017. The Vanguard Value ETF (VTV US) on its own accounted for net inflows of US$5.08 Bn.
 
Top 20 Smart Beta ETFs by net new assets: Global


Similarly, the top 10 ETPs by net new assets collectively gathered US$661.56 Mn year-to-date during 2017.

Top 10 Smart Beta ETPs by net new assets: Global

 
Value Factor ETFs/ETPs listed globally saw net inflows of US$2.63 Bn in December, growing net inflows for 2017 to US$16.66 Bn. Multi Factor ETFs and ETPs gathered net inflows of US$1.41 Bn in December, bringing net inflows for 2017 to US$12.85 Bn.

To conclude, investors have tended to invest in lower cost and Value Factor ETFs in 2017 with the Vanguard Value ETF (VTV US) accumulating net inflows of US$1.40 Bn and a TER of 6bp.
Please contact deborah.fuhr@etfgi.com if you would like to discuss the cost to subscribe to any of ETFGI’s  research or consulting services. 

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Attribution Policy
The information contained herein is proprietary. The media is welcome to use our information and ideas, provided that the following sourcing is included: ETFGI is a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, based in London, England. Deborah Fuhr, Managing Partner, co-founder, ETFGI website www.etfgi.com.
 
About ETFGI 
ETFGI is an independent research and consultancy firm launched in 2012 by Deborah Fuhr and partners in London offering consulting services and paid for research subscription services.  Our service is the only global offering of monthly reports covering each region of the world where ETFs, ETPs are listed, a monthly directory and monthly fact sheets along with a database covering all global products plus you receive insights from us.   Visit www.etfgi.com to learn more.
 
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About Deborah Fuhr 
Previously Deborah Fuhr served as global head of ETF research and implementation strategy and as a managing director at BlackRock/Barclays Global Investors from 2008 – 2011. She also worked as a managing director and head of the investment strategy team at Morgan Stanley in London from 1997 – 2008, and as an associate at Greenwich Associates.
She has been working with investors, ETF, ETP providers, index providers, exchanges, MMs and APs, regulators, trade associations, custodians, law firms, accounting firms around the world since 1997. 
ETFGI is honored to count as our research and consulting clients some of the leading firms in the ETF Ecosystem around the world as well as some new entrants and firms that are considering entering the ETF, ETP industry.
 
Past awards for Ms Fuhr include she was the recipient of the 100 Women in Finance 2017 European Industry Leadership Award, the 2014 William F. Sharpe Lifetime Achievement Award for outstanding contributions to the field of index investing and she named one of the “100 Most Influential Women in Finance” by Financial News over several years, most recently in 2016.  
Deborah Fuhr is a founder and board member of Women in ETFs “WE” a not for profit organization to connect, support and inspire Women and Men in the ETF ecosystem. WE has over 3,600 members in chapters around the world.
 
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