ETFGI reports asset growth and net inflows in global ETFs ETPs industry continues to outpace global Hedge Fund industry in Q4 2018
Press Release
LONDON — February 5, 2019 — ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that assets invested in ETFs and ETPs listed globally amounted to US$4.82 trillion at the end of Q4 2018, following net inflows of US$164.84 billion and market moves during the period. The Global Hedge Fund industry saw assets fall to US$3.11 trillion, with net outflows of US$22.5 billion during the quarter, according to ETFGI’s Q4 2018 Global ETF and ETP industry landscape insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
- Asset growth of global ETF/ETP industry continues to outpace global Hedge Fund industry.
- $4.82 trillion invested in 7,620 ETFs/ETPs listed globally at end of 2018.
- $3.11 trillion invested in 8,311 Hedge Funds listed globally at end of 2018.
According to analysis by ETFGI, $4.82 Tn was invested in 7,620 ETFs/ETPs listed globally at the end of 2018, representing growth in assets of -0.49% over the year, impacted by sharp declines in the major indices during the last quarter. During 2018, assets invested in Hedge Funds globally fell by 3.24% to $3.11 Tn in 8,311 hedge funds, according to a report by Hedge Fund Research. Comparatively, assets invested in ETFs/ETPs had increased 36.23%, from $3.55 Tn to $4.84 Tn in 2017. Over the same period, assets invested in the Global hedge fund industry increased 6.37%, from $3.02 Tn to $3.22 Tn.
The HFRI Fund weighted composite index returned -5.76% in Q4 compared to -13.52% of the S&P 500 index (w/dividends), as many Hedge Funds strategies positioned for a market correction finally came to fruition. Despite this, investors still ploughed money into passive funds, with ETFs/ETPs attracting $164.84 Bn in Q4, while withdrawing $22.5 Bn from Hedge Funds.
Assets invested in the global ETF/ETP industry first surpassed those invested in the hedge fund industry at the end of Q2 2015, as ETFGI had forecasted. Growth in assets in the ETF/ETP industry has outpaced growth in the hedge fund industry since the financial crisis in 2008.
In 2018 the return of the S&P 500 Index was marginally better than the performance of the HFRI Fund weighted Composite index: -4.39% vs. -4.49%, respectively.
Returns of the HFRI Fund Weighted Composite Index and the S&P 500 Index
|
Year |
HFRI Fund Weighted |
S&P 500 |
|
Composite Index |
Index w/ dividends |
|
|
2011 |
-5.25% |
2.09% |
|
2012 |
6.36% |
15.99% |
|
2013 |
9.13% |
32.36% |
|
2014 |
2.98% |
13.65% |
|
2015 |
-1.12% |
1.38% |
|
2016 |
5.44% |
11.93% |
|
2017 |
8.68% |
21.80% |
|
2018 |
-4.49% |
-4.39% |
Sources: Hedge Fund Research HFR, S&P Dow Jones Indices
During 2018, ETFs/ETPs listed globally gathered $516 Bn in net inflows, according to ETFGI’s Global ETF and ETP industry insight report. December 2018 also marked the 59th consecutive month of net inflows into ETFs/ETPs. Over the same period, HFR reported net outflows of $33.5 Bn from Hedge Funds. Assets invested in the global ETF/ETP industry continue to grow, extending their lead over assets invested in the global hedge fund industry, the gap widening by 5.30%, from $1.62 Tn at the end of 2017 to $1.71 Tn.
The top 20 ETFs by net new assets in 2018, collectively gathered $206 Bn. The TOPIX Exchange Traded Fund (1306 JP) alone accounted for net inflows of $22.29 Bn over the period.
Top 20 ETFs by net new assets 2018: Global
|
Name |
Ticker |
Assets |
NNA |
NNA |
|
TOPIX Exchange Traded Fund |
1306 JP |
71,167 |
2,166 |
22,288 |
|
iShares Core MSCI EAFE ETF |
IEFA US |
52,331 |
860 |
20,802 |
|
iShares Core S&P 500 ETF |
IVV US |
147,540 |
2,470 |
18,592 |
|
iShares Core MSCI Emerging Markets ETF |
IEMG US |
49,202 |
1,142 |
15,738 |
|
Vanguard S&P 500 ETF |
VOO US |
90,519 |
(2,092) |
13,418 |
|
iShares Short Treasury Bond ETF |
SHV US |
20,690 |
3,340 |
12,672 |
|
Daiwa ETF TOPIX |
1305 JP |
34,176 |
1,355 |
11,166 |
|
Vanguard Total Stock Market ETF |
VTI US |
93,577 |
1,987 |
9,848 |
|
Vanguard FTSE Developed Markets ETF |
VEA US |
65,145 |
2,080 |
9,639 |
|
iShares 1-3 Year Treasury Bond ETF |
SHY US |
20,624 |
3,357 |
9,288 |
|
Listed Index Fund TOPIX |
1308 JP |
31,765 |
1,264 |
9,198 |
|
Vanguard Value ETF |
VTV US |
41,408 |
1,167 |
8,404 |
|
Nikkei 225 Exchange Traded Fund |
1321 JP |
50,018 |
1,210 |
7,319 |
|
SPDR Bloomberg Barclays 1-3 Month T-Bill ETF |
BIL US |
8,668 |
1,696 |
6,724 |
|
iShares Core S&P Small-Cap ETF |
IJR US |
37,292 |
8 |
5,733 |
|
iShares Core MSCI Total International Stock ETF |
IXUS US |
11,989 |
299 |
5,693 |
|
iShares Core U.S. Aggregate Bond ETF |
AGG US |
57,078 |
2,669 |
5,559 |
|
JPMorgan Ultra-Short Income ETF |
JPST US |
5,129 |
719 |
5,065 |
|
iShares Floating Rate Bond ETF |
FLOT US |
11,319 |
(1,003) |
4,830 |
|
iShares Core S&P 500 UCITS ETF |
CSSPX SW |
28,664 |
(229) |
4,559 |
Similarly, the top 10 ETPs by net new assets collectively gathered $9.99 Bn by the end of 2018.
Top 10 ETPs by net new assets 2018: Global
|
Name |
Ticker |
Assets |
NNA |
NNA |
|
Xtrackers Physical Gold ETC (EUR) |
XAD5 GY |
2,536 |
110 |
1,884 |
|
iShares Gold Trust |
IAU US |
11,545 |
345 |
1,599 |
|
Barclays ETN+ FI Enhanced Global High Yield ETN |
FIYY US |
1,285 |
(39) |
1,259 |
|
iShares Physical Gold ETC |
SGLN LN |
4,350 |
635 |
1,170 |
|
ProShares Short VIX Short-Term Futures |
SVXY US |
338 |
0 |
1,051 |
|
Barclays ETN+ FI Enhanced Europe 50 ETN |
FFEU US |
616 |
16 |
806 |
|
NH QV KOSPI Volatility Matching Strangle ETN 57 |
550057 KS |
629 |
623 |
623 |
|
ETFS Physical Gold |
PHAU LN |
6,662 |
295 |
536 |
|
VelocityShares Daily 3x Inverse Natural Gas ETN |
DGAZ US |
377 |
(382) |
534 |
|
FI Enhanced Global High Yield ETN |
FIHD US |
1,391 |
70 |
528 |
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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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” the first women’s group for the ETF industry. Founded in January 2014, WE is a non-profit organization that brings together over 4,500 members, including women and men, in chapters in major financial centres around the world to CONNECT, SUPPORT and INSPIRE. WE achieves this by organizing events at our chapters globally that support our goals of education, networking, philanthropy and idea sharing across the industry and beyond. For more information, visit: www.womeninetfs.com
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