ETFGI reports that assets invested in currency hedged ETFs and ETPs listed globally have increased 32% to US$172 billion as of the end of November 2019

LONDON — December 31, 2019 — ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that currency hedged ETFs and ETPs listed globally gathered net inflows of US$1.81billion during November, while year to date there were net inflows of US$23.92 billion. Total assets invested in currency hedged ETFs and ETPs increased 32.3% from US$130 billion to US$172 billion, with a 5-year CAGR of 19.7%, according to ETFGI’s November 2019 Currency hedged ETFs and ETPs industry landscape insights report, an annual paid-for research subscription service.  (All dollar values in USD unless otherwise noted.) 

Highlights

  • Currency hedged ETFs/ETPs gathered net inflows of $1.81 billion during November.
  • Currency hedged ETFs/ETPs providing Mixed (DM & EM) exposures gathered largest inflows in November. 
  • YTD assets invested in currency hedged ETFs/ ETPs increased 32.3% from US$130 billion to US$172 billion.

 

“During November the S&P 500 gained 3.6% as global markets were resistant to fears of inflation and showed optimism on the trade talks.  Global equities as measured by the S&P Global BMI were up 2.5% and the S&P Emerging BMI gained 0.1%.” According to Deborah Fuhr, managing partner, founder and owner of ETFGI.

At the end of November 2019, there were 977 currency hedged ETFs/ETPs, with 1,704 listings, assets of $172 billion, from 73 providers listed on 29 exchanges in 22 countries. Following net inflows of $1.81 billion and market moves during the month, assets invested in currency hedged ETFs/ETPs increased by 1.8%, from $169 billion at the end of October to 
$172 billion.

 

At the end of November 2019, there were currency hedged ETFs/ETPs hedged against 15 different currencies. Year to date, 29 new currency hedged ETFs/ETPs were launched by 30 providers across 18 index providers in 14 countries, while 74 products were delisted from 16 different providers. 

 

During the month, Mixed exposures (EM and DM) gathered the largest net inflows with $682 million, followed by United States exposures with $420 million and other exposures with $344 million, while Developed European exposures experienced the largest net outflows with $131 million. On a year to date basis, Mixed exposures gathered the largest net inflows with $13.81 billion, followed by United States exposures with $6.85 billion and global developed market exposures with $4.96 billion, while Developed Asia Pacific exposures experienced the largest net outflows with $3.96 billion.

 

The top 10 currency hedged ETFs/ETPs by net new assets collectively gathered $1.69 billion during November. The Vanguard Total International Bond ETF (BNDX US) gathered $479 million, the largest net inflow in November. 

Top 10 ETFs/ETPs by net new assets November 2019: Currency hedged

Name

Ticker

Assets
(US$ million)
 Nov-19

ADV
(US$ million)
Nov-19

NNA
(US$ million)
YTD 2019

NNA
(US$ million)
Nov-19

Vanguard Total International Bond ETF

BNDX US

  24,307.23 

     92.73 

  10,009.37 

    478.93 

iShares USD Treasury Bond 0-1yr UCITS ETF - Acc

TBX1 SW

   1,070.77 

          -   

   1,066.04 

    317.96 

LYXOR UCITS ETF MSCI WORLD - MONTHLY HEDGED D-EUR

WLDH FP

      560.08 

       0.21 

      313.44 

    224.54 

iShares $ Floating Rate Bond UCITS ETF - Acc (MXN)

FRMXNX IX

      686.34 

          -   

      675.42 

    130.01 

BNP Paribas EUR Hedged RICI Enhanced Energy ER Index ETC

B4NX GY

      116.95 

       0.16 

      120.60 

    120.56 

Xtrackers MSCI Japan UCITS ETF (DR) (EUR) - 4C

XMK9 IM

      842.85 

          -   

     (221.68)

    116.09 

iShares J.P. Morgan $ EM Bond UCITS ETF - CHF Hedged - Acc

EMCH SW

        94.88 

          -   

        95.08 

     94.57 

SPDR Bloomberg Barclays 1-3 Month T-Bill UCITS ETF

ZPRM GY

        82.37 

          -   

        83.26 

     76.66 

UBS Irl ETF plc - S&P 500 ESG UCITS ETF - CHF Hdg - Acc

5ESGS SW

        71.94 

          -   

        70.65 

     69.12 

UBS (Irl) ETF plc - MSCI ACWI Socially Responsible UCITS ETF

AWSRIW SW

      199.51 

       1.83 

        92.42 

     63.25 

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Free registration and CE credits are offered to buyside investors and financial advisors.  
   
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ETF TV is a new show which provides insights into the use, trading, regulatory and product development trends for exchange traded funds ETFs and exchange traded products ETPs.  Go to www.ETFtv.net to view

Episode 1 ETF TV views from industry leaders in Europe
Episode 2 ETF TV Tara O'Reilly on the regulatory environment for ETFs 
Episode 3 ETF TV Dan Draper of Invesco picks out the key future trends to watch in the ETF market 
Episode 4 ETF TV Dr Xiaolin Chen of KraneShares explains ETF use in institutional investment and for access to China
Episode 5 ETF TV ETF market structure and trading protocols are evolving approaches to investment Tom Digby, Head of EMEA ETF Client Trading at Invesco
Episode 6 ETF TV Ciarán Fitzpatrick, Managing Director, Head of ETF Servicing Europe at State Street discuss generating alpha with ETFs  
Episode 7 of ETF TV features Eric M. Pollackov Global Head of ETF Capital Markets at Invesco sharing his views on active and passive investing being a collaboration of capabilities, the need for education and innovations developing in non-transparent active and Crypto ETPs
Episode 8 of ETF TV features Shaun Baskett, Director Index Sales at Cboe Europe sharing his views on the role of regulation, trade transparency and liquidity for ETFs
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Episode 10 of ETF TV features Jim Goldie, head of ETF Capital Markets (EMEA) at Invesco, sharing his views on the growth in the use of fixed income ETFs, how they can have tighter spreads than the index and provide cost efficient execution, with Hamish McArthur of ETF TV
Episode 11 of ETF TV features Elena Philipova, Global head of ESG proposition at Refinitiv, discussing how to define sustainable investment opportunities and the changing landscape of ESG application within the investment industry
Episode 12 of ETF TV part 2 of the Difference in US and European approaches to ESG should not inhibit growth interview with Elena Philipova, global head of ESG proposition at Refinitiv with Deborah Fuhr, Managing Partner of ETFGI and co-founder of ETF TV
Episode 13 of ETF TV   features Tom Stephens, head of international ETF Capital Markets at JP Morgan Asset Management, Active ETFs will be the next level.  The use of fixed income exchange-traded funds for long term investment as well as for shorter term liquidity management and portfolio transitions
Episode 14 of ETF TV episode features Manuela Sperandeo, EMEA head of smart beta, sustainable and thematic ETFs at BlackRock explains how to define the category, assess it in the context of investment strategy, and to implement it in practicality
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Episode 16 of ETF TV features Deborah Fuhr and Dan Barnes - The ETF Rule in the US will lead to many new issues in the market across 2020; the ‘non-transparent active’ ETFs – in reality as transparent as mutual funds, and better described as periodically-disclosed ETFs, will increase in number. New smart-beta strategies and launches of funds based on existing smart-beta strategies will also grow.

 

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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 the ETF.com’s 2018’s Lifetime Achievement Award, 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 ETFsthe first women’s group for the ETF ecosystem. Founded in January 2014, WE inc is a 501(c)(3) non-profit organization that brings together members, including women and men, in 7 WE inc chapters across the United States and works with Women in ETFs entities in Canada, EMEA (7 chapters) and Asia Pacific to: 1) CONNECT: Create opportunities for professional advancement of women by expanding connections among women and men in the ETF industry; 2) SUPPORT: Offer guidance for the current and next generation of women in ETFs and 3) 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.comto learn more, join, or sponsor. Follow us on Twitter: @WomeninETFsand on Linkedin: Women in ETFs

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