ETFGI's report shows currency hedged ETFs and ETPs listed globally gathered net inflows of US$3.10 billion during February 2020
LONDON—March 24, 2020 — 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$3.10billion during February bringing year to date net inflows to US$7.17 billion. Total assets invested in currency hedged ETFs and ETPs decreased by 2.2% from US$181 billion to US$177 billion, with a 5-year CAGR of 21.3%, according to ETFGI’s February 2020 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 $3.01 billion during February.
- The $177 billion invested in currency hedged ETFs / ETPs listed globally at the end of February is the 3rdhighest on record
“At the end of February, the S&P 500 was down 8.2% as coronavirus cases continued to spread and the potential economic impact weighed on investors and the markets. Outside the U.S., the S&P Developed ex-U.S. BMI declined nearly 9.0%. The S&P Emerging BMI lost 5.1% during the month. Global equities as measured by the S&P Global BMI ended down 8.1% with 49 of 50 included country indices down, while China gained 0.9%.” According to Deborah Fuhr, managing partner, founder and owner of ETFGI.
At the end of February 2020, there were 783 currency hedged ETFs/ETPs, with 1,709 listings, assets of $177 billion, from 73 providers listed on 29 exchanges in 22 countries. Following net inflows of $3.10 billion and market moves during the month, assets invested in currency hedged ETFs/ETPs decreased by 2.2%, from $181 billion at the end of January to $177 billion.
Growth in the US currency hedged ETF and ETP assets as of the end of February 2020
At the end of February 2020, there were currency hedged ETFs/ETPs hedged against 15 different currencies. Year to date, 7 new currency hedged ETFs/ETPs were launched by 13 providers across 7 index providers in 8 countries, while 7 products were delisted from 2 different providers.
During the month, Mixed exposures gathered the largest net inflows with $1.42 billion, followed by United States exposures with $1.29 billion and Global-Developed exposures with $707 million, while Asia Pacific-Developed exposures experienced the largest net outflows with $656 million. On a year to date basis, Mixed exposures gathered the largest net inflows with $2.86 billion, followed by United States exposures with $2.50 billion and Global-Developed exposures with $1.92 billion, while Asia Pacific-Developed exposures experienced the largest net outflows with $870 million.
The top 10 currency hedged ETFs/ETPs by net new assets collectively gathered $2.81 billion at the end of February.
The Vanguard Total International Bond ETF (BNDX US) gathered $976 million, the largest net inflow for the month.
Top 10 ETFs/ETPs by net new assets February 2020: Currency hedged
|
Name |
Ticker |
Assets |
ADV |
NNA |
NNA |
|
Vanguard Total International Bond ETF |
BNDX US |
27085.33 |
119.83 |
2080.56 |
976.00 |
|
Mackenzie Emerging Markets Local Currency Bond Index ETF |
QEBH CN |
418.25 |
11.09 |
232.62 |
228.80 |
|
iShares S&P 500 EUR Hedged UCITS ETF (Acc) |
IUSE LN |
3880.31 |
2.92 |
230.98 |
211.57 |
|
iShares USD Treasury Bond 0-1yr UCITS ETF - Acc |
TBX1 SW |
1909.09 |
0.00 |
365.18 |
165.57 |
|
Xtrackers II iBoxx USD Treasuries UCITS ETF DR EUR Hedged |
XUTE GY |
674.22 |
1.57 |
198.09 |
150.17 |
|
iShares J.P. Morgan $ EM Bond EUR Hedged UCITS ETF (Dist) - EUR Hdg |
EMBE LN |
3925.08 |
1.64 |
248.86 |
124.39 |
|
UBS ETF - Bloomberg Barclays US 10+ Year Treasury Bond UCITS ETF (EUR) |
UST10F SW |
209.06 |
0.01 |
121.77 |
119.74 |
|
iShares $ Floating Rate Bond UCITS ETF - Acc (MXN) |
FRMXNX IX |
1028.08 |
0.00 |
207.96 |
114.54 |
|
iShares $ High Yield Corp Bond UCITS ETF (MXN) |
IHYMXX IX |
220.36 |
0.00 |
140.06 |
96.48 |
|
iShares Global High Yield Corp Bond GBP Hedged UCITS ETF (Dist) |
GHYS LN |
311.40 |
0.80 |
115.49 |
87.42 |
Contact deborah.fuhr@etfgi.com if you have any questions or comments on the press release or ETFGI events, research or consulting services.
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Register now to join us at the ETFGI Global ETFs Insights Summit in New York which has been postponed from April 2nduntil the fall of 2020. Free registration and CPD educational credits are offered to buyside institutional investors, financial advisors and RIAs.
Our summits are designed to provide the opportunity for institutional investors, RIAs and financial advisors, to hear from the leading ETF issuers, banks, exchanges, law firms and others around the impact that market structure and regulations have on ETF product development for ESG and non-transparent active, due diligence, suitability, the use and trading, and technological developments of ETFs.
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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 watch episodes 1 - 12
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
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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
Episode 9 of ETF TV features Sergey Dolomanov, Partner at WILLIAM FRY sharing his views on the value of ETFs being the delivery of better value and choice for investors and the development of active and ESG strategies with Hamish McArthur of ETF TV and Deborah Fuhr of ETFGI
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, sharing her views on the changing landscape of ESG application within the investment industry
Episode 12 of ETF TV features Elena Philipova, Global head of ESG proposition at Refinitiv,sharing her views on the regional differences in approach to supporting investment based on environmental, social and governance factors
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
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Episode 15 of ETF TV features Ivan Gilmore, head of exchange-traded products and global product development at the London Stock Exchange sees innovation in trading protocols and ESG products are transforming the ETF landscape, plus his thoughts on active vs passive and governance.
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.
Ms Fuhr was made a Fellow of CFA UK in January 2020, was the recipient of the ETF.com 2018 lifetime achievement award, 100 Women in Finance’s 2017 European Industry Leadership Award, the 2014 William F. Sharpe Lifetime Achievement Award for outstanding and lasting contributions to the field of index investing, the Nate Most Greatest Contributor to the ETF industry award at the 11th annual ExchangeTradedFunds.com awards dinner in 2015, the ETF.com Lifetime achievement award in 2015. She has been named as one of the “100 Most Influential Women in Finance” by Financial News over several years, most recently in 2016, and as one of the “10 to Watch in 2014” by Rep. magazine and wealthmanagement.com. Ms Fuhr won the award for the Greatest Overall Contribution to the development of the Global ETF industry in the ExchangeTradedFunds.com survey in 2011 and 2008 and received an award for her contribution to the ETF sector at the annual closed end funds and ETF event in New York and was featured in the Investors Chronicle’s list of “150 people that can make you money” in 2010.
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 5,600 members, including women and men, in chapters in major financial centers 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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