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.
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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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
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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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