ETFGI reports assets invested in leveraged and inverse ETFs and ETPs listed globally reach record high of US$87.3 billion at the end of January 2018
LONDON — February 27, 2018 — According to ETFGI’s January 2018 Leverage and Inverse ETF and ETP industry insights report, a monthly report included in an annual paid-for research subscription service, assets invested in leveraged and inverse ETFs and ETPs listed globally reached a record high of US$87.3 billion at the end of January 2018, shattering the previous record of US$80.7 billion set at the end of 2017. (All dollar values in USD unless otherwise noted.)
Highlights
- During January, leverage and inverse ETFs/ETPs listed globally saw net inflows of $1.47 Bn
- Assets invested in leveraged and inverse ETFs/ETPs listed globally increased by a record $6.61 Bn
during January 2018 to reach a new high of $87.3 Bn at the end of the month
- The majority of assets were invested in leveraged ETFs/ETPs with $53.8 Bn, followed by inverse
products with assets of $17.8 Bn, and leveraged inverse with $15.8 Bn
During January 2018 assets invested in leveraged and inverse ETFs/ETPs increased by $6.61 Bn, or 8.19%. According to ETFGI’s data this growth represents the greatest absolute monthly increase in assets on record. The previous record was set in August 2015, when assets grew by $4.65 Bn.
The majority of assets were invested in leveraged ETFs/ETPs with $53.8 Bn, followed by inverse ETFs/ETPs with assets of $17.8 Bn, and leveraged inverse ETFs/ETPs with $15.8 Bn. The largest market for leveraged and inverse ETFs/ETPs was in the United States, which, at the end of January 2018, had assets of $54.2 Bn, or 62.1% of global assets, invested in 273 ETFs/ETPs.
A large proportion of these assets are invested in relatively few products. For example, the ProShares UltraPro QQQ (TQQQ US) and the ProShares Ultra S&P500 (SSO US), both of which are leveraged products listed in the United States, had assets of $3.40 Bn and $2.64 Bn, respectively, at the end of January 2018.
This trend is also true outside of the US. For example, the YUANTA/P-shares Taiwan Top 50 1X Bear ETF (00632R TT), an inverse product listed in Taiwan, had assets of $2.77 Bn; and the NEXT FUNDS Nikkei 225 Leveraged Index ETF (1570 JP), a leveraged product listed in Japan, has assets of $2.22 Bn.
Globally, the top 20 ETFs/ETPs by assets collectively accounted for $36.8 Bn at the end of January 2018.
Top 20 ETFs/ETPs by assets: Global
Similarly, the top 20 ETFs/ETPs by net new assets collectively accounted for the majority of net inflows. During January 2018, leverage and inverse ETFs/ETPs listed globally saw net inflows of $1.47 Bn, of which the top 20 collectively gathered $4.17 Bn.
Top 20 ETFs/ETPs by YTD NNA: Global
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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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