ETFGI reports currency hedged ETFs and ETPs experience net outflows of US$3.38 Bn during October 2018

LONDON — December 10, 2018 — ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that currency hedged ETFs and ETPs listed globally experienced net outflows of US$3.38 Bn during October. Following a turbulent month for financial markets, total assets invested in currency hedged ETFs and ETPs fell 8.90%, from US$146 Bn at the end of September, to US$133 Bn, according to ETFGI’s October 2018 Currency hedged ETF and ETP industry landscape insights report, an annual paid-for research subscription service.  (All dollar values in USD unless otherwise noted.) 

Highlights

  • Total Assets invested in currency hedged ETFs and ETPs declined 8.90% to $133 Bn during October.
  • Currency hedged ETFs/ETPs saw net outflows of $3.38 Bn during October.
  • Currency hedged ETFs/ETPs providing exposure to global emerging markets saw the greatest inflows during October.

 
“Few markets managed to avoid the October sell off, as investors grew jittery at the prospects of further rate hikes from the US treasury and any hope of resolutions to trade disputes appeared to be diminishing, be it in Europe or the US. Developed and developing markets saw similar declines during the month. Aside from the US, where strong year-to-date performance cushioned the fall, October pushed many indices deeper into negative territory for the year. The S&P 500 fell 6.84% over the month, retaining a 3.1% gain year-to-date, while European markets fell 7.82%, bringing year-to-date decline to 9.56%. EM markets down 7.60% and Frontier markets down 3.36%, bringing year to date declines to 15.07% and 10.68%, respectively.” according to Deborah Fuhr, managing partner and a founder of ETFGI.

At the end of October 2018, there were 710 currency hedged ETFs/ETPs, with 1,495 listings, assets of $133 Bn, from 68 providers listed on 28 exchanges in 21 countries. Following net outflows of $3.38 Bn and market moves during the month, assets invested in currency hedged ETFs/ETPs decreased by 8.90%, from $146 Bn at the end of September 2018, to $133 Bn.
 
Growth in the US currency hedged ETF and ETP assets as of the end of October 2018

 

At the end of October 2018, there were currency hedged ETFs/ETPs hedged against 15 different currencies. The currency most hedged against is the US Dollar, with assets of $46,474 Mn and net outflows of $9,042 YTD, followed by those hedged against the Euro with assets of $40,500 Mn and $3,648 net inflows YTD, and then products hedged against the Canadian Dollar with assets of $23,775 Mn and $2,881 net inflows YTD.
 
The top 10 currency hedged ETFs/ETPs by net new assets collectively gathered $1.14 Bn during October. The iShares MSCI World EUR Hedged UCITS ETF (Acc) (WDE LN) gathered $165 Mn, the largest net inflow in October. 

Top 10 ETFs/ETPs by net new assets October 2018: Currency hedged
 

Name Ticker Assets
(US$ Mn)
 Oct-18
ADV
(US$ Mn)
Oct-18
NNA
(US$ Mn)
YTD 2018
NNA
(US$ Mn)
Oct-18
iShares MSCI World EUR Hedged UCITS ETF (Acc) IWDE LN 1,813 1 546 165
BNP Paribas Easy S&P 500 UCITS ETF EUR Hgd Cap ESEH FP 699 7 503 138
Xtrackers II USD EM Bond UCITS ETF (EUR) XEMB GY 441 0 (109) 135
iShares S&P 500 EUR Hedged UCITS ETF (Acc) IUSE LN 4,208 6 1,310 116
BMO Barclays 1-3 Glob Corp Bond GBP Hgd UCITS ETF ZC1G LN 177 0 149 110
iShares Core S&P 500 Index ETF  (CAD-Hedged) XSP CN 3,331 60 202 104
Vanguard Total International Bond ETF BNDX US 12,096 67 2,933 101
Xtrackers Physical Gold Euro Hedged ETC XAD1 GY 1,753 2 341 97
Xtrackers MSCI Japan  UCITS ETF (DR) (EUR)  - 4C XMK9 IM 1,121 0 (27) 88
ComStage CBK Comm ex-Agri Mon EUR Hgd UCITS ETF C099 GY 339 1 136 84

 
 
Investors have tended to invest in core, market cap and lower cost ETFs in October.

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If you are interested in sponsorship or attending the 2019 ETFs Global Markets Roundtable conferences, please contact Deborah Fuhr at [email protected]

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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 covering 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 London offering consulting services and paid for research subscription services. Deborah Fuhr is the Managing Partner and a founder of ETFGI.  Our services are unique in their breadth and depth of coverage in  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 4,100 members in chapters around the world. 

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