ETFGI reports asset growth and net inflows in global ETFs ETPs industry continues to outpace global Hedge Fund industry in Q4 2018

 

Press Release

LONDONFebruary 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
(US$ Mn)
 Dec-18

NNA
(US$ Mn)
Dec-18

NNA
(US$ Mn)
2018

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

https://etfgi.com/sites/default/files/styles/feature_image/public/source_3.png?itok=sw3zyEon 

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
(US$ Mn)
 Dec-18

NNA
(US$ Mn)
Dec-18

NNA
(US$ Mn)
2018

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

https://etfgi.com/sites/default/files/styles/feature_image/public/source_3.png?itok=sw3zyEon

 

Please contact [email protected] if you would like to discuss the cost to subscribe to any of ETFGI’s research or consulting services. 
 

###

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, 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” 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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