ETFGI reports ETFs and ETPs listed globally gather net inflows of 76 billion in December, 2nd highest on record

Total Assets invested in the global ETF and ETP industry fell 5.28% by the end of December, from US$5.06 Tn at the end of November, to US$4.79 Tn, according to ETFGI’s December 2018 Global ETF and ETP industry landscape insights report, an annual paid-for research subscription service.

Highlights

• Net new assets gathered by ETFs/ETPs listed globally were $76.24 Bn in December, 2nd highest on record.
• During 2018, ETFs/ETPs listed Globally attracted $516 Bn in net inflows, less than the $654 Bn gathered in 2017.
• 59th consecutive months of net inflows into ETFs/ETPs listed globally.

“The end of 2018 saw the trend in developed markets reverse, and although arguably predictable, the severity left many pundits scratching their heads. This end of year stress has widely been attributed to the disruption caused by trade disputes feeding into economic data, and the view policy makers are not going to be quite as accommodating as initially expected. The S&P 500 returned -9.03% during December, and down -4.38% for 2018. Developed markets ex-US fell -4.62% during December, led by Japan and Canada, bringing the yearly return to -13.21%. Relatively speaking, EM and FM faired the month better, returning -2.68% and -3.15%, finishing 2018 -13.53% and -11.82%, respectively” according to Deborah Fuhr, managing partner and founder of ETFGI.

Throughout 2018, the global ETF/ETP industry has continued to grow. January 2018 saw the largest monthly inflow into ETFs/ETPs on record, pushing assets above $5 Tn for the first time. The record for assets invested in ETFs/ETPs was set in September 2018 at $5.26 Tn, an 8.6% increase over 2017. However, with most major indices finishing the year in the red, assets invested in the global ETF/ETP industry finished 2018 down, albeit only 0.6%, supported by consistent positive inflows.

At the end of December 2018, the Global ETF/ETP industry had 7,657 ETFs/ETPs, with 14,993 listings, assets of $4.79 Tn, from 401 providers listed on 71 exchanges in 57 countries. Following net inflows of $76.24 Bn and market moves during the month, assets invested in ETFs/ETPs listed globally decreased by 5.28%, from $5.06 Tn at the end of November 2018, to $4.79 Tn.

Growth in Global ETF and ETP assets as of the end of December 2018

Equity ETFs/ETPs listed globally attracted net inflows of $50.87 Bn in December, growing net inflows for 2018 to $362 Bn, less than the $471 Bn in net inflows seen by equity-based products during 2017. Fixed Income ETFs and ETPs listed globally saw net inflows of $21.17 Bn in December, bringing net inflows for 2018 to $107 Bn, less than the $142 Bn seen during 2017.

December marked the  59th consecutive month of net inflows into ETFs/ETPs listed globally, for 2018 ETFs/ETPs listed globally have seen inflows of $516 Bn, less than the $654 Bn in net inflows gathered in 2017.

Substantial inflows during December can be attributed to the top 20 ETFs by net new assets, which collectively gathered $40.79 Bn. The iShares 1-3 Year Treasury Bond ETF (SHY US) gathered $3.36 Bn, the largest net inflow in December.

Top 20 ETFs by net new assets December 2018: Global

The top 10 ETPs by net new assets collectively gathered $3.84 Bn by the end of December 2018.

Top 10 ETPs by net new assets December 2018: Global

Investors have tended to invest in short duration fixed income, market cap and lower cost ETFs in December.