Assets invested in ETFs and ETPs listed globally amounted to USD4.99 trillion at the end of Q2 2018, following net inflows of USD85.47 billion and market moves during the period while the global hedge fund industry saw assets rise to a record USD3.24 trillion, despite net outflows of USD3.0 billion over the quarter, buoyed by positive market moves.
That’s according to ETFGI’s Q2 2018 Global ETF and ETP industry landscape insights report and a report by Hedge Fund Research.
Total assets invested in the global ETF/ETP industry continues to extend their lead over assets invested in the global hedge fund industry, with the gap widening by 2.70 per cent, from USD1.70 trillion in Q1 2018, to USD1.75 trillion. 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 forecast. Growth in assets in the ETF/ETP industry has outpaced growth in the hedge fund industry since the financial crisis in 2008.
In Q2 2018 the return of the the S&P 500 Index was higher than the performance of the HFRI Fund weighted Composite index: 3.44 per cent vs. 0.84 per cent, respectively.
During the second quarter of 2018, ETFs/ETPs listed globally gathered USD85.47 billion in net inflows, according to ETFGI’s Global ETF and ETP industry insight report. June 2018 also marked the 53rd consecutive month of net inflows into ETFs/ETPs. Over the same period, HFR reported net outflows of USD3.0 billion from Hedge Funds.
Investors tended towards developed market equities during Q2, with equity-based ETFs/ETPs listed globally gathering net inflows of USD49.0 billion, and Equity Hedge strategy funds (as defined by HFR) seeing net inflows of USD2.4 billion.
The majority of net inflows into ETFs/ETPs can be attributed to the top 20 ETFs by net new assets, which have collectively gathered USD1.5 billion during Q1 and Q2 ‘18. The iShares Core MSCI EAFE ETF (IEFA US) alone accounted for net inflows of USD18.07 billion over the period.
Similarly, the top 10 ETPs by net new assets collectively gathered USD8.19 billion by the end of June 2018.
