ETFs

The global ETF market is thriving

Record assets and net inflows of US$9.73 trillion and US$ 834 billion in ETFs and ETPs listed globally at the end of August

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Exchange-traded funds (ETFs) including Exchange-traded products (ETPs) listed globally gathered net inflows of US$94.64 billion last month, bringing year-to-date net inflows to US$834.21 billion according to data released by ETFGI.

The London-based researcher says the 2021 net flows to August were almost double compared to the same period last year ( US$427.56 billion) and higher than the full year 2020 record net inflows US$762.77 bn.

Assets invested in the global ETFs/ETPs industry have increased by 2.8% from US$9.46 trillion at the end of July 2021, to US$9.73 trillion at the end of August. Meanwhile, the global ETF/ETP industry reported 9,302 products from 568 providers listed on 78 exchanges in 62 countries.

ETFs
(Source: ETFGI)

Equity ETFs/ETPs listed globally gathered net inflows of $69.06 Bn over August, bringing net inflows for 2021 to $581.25 Bn, much greater than the $136.96 Bn in net inflows equity products had attracted for the corresponding period through August 2020.

Fixed Income ETFs/ETPs listed globally reported net inflows of $19.99 Bn during August, bringing net inflows for 2021 to $153.33 Bn, lower than the $160.43 Bn in net inflows fixed income products had attracted YTD in 2020.

Commodity ETFs/ETPs listed globally gathered net outflows of $1.91 Bn, bringing net outflows for 2021 to $8.04 Bn, significantly lower than the $68.08 Bn in net inflows commodity products had attracted over the same period last year.

Active ETFs/ETPs reported $6.99 Bn in net inflows, bringing net inflows for 2021 to $95.22 Bn, higher than the $43.04 Bn in net inflows active products had attracted YTD in 2020.

Substantial inflows can be attributed to the top 20 ETFs by net new assets, which collectively gathered $40.58 Bn during August. SPDR S&P 500 ETF Trust (SPY US) gathered $7.81 Bn largest individual net inflow.

At the end of August, the S&P 500 posted its 7th straight month of gains, up 3.0% in the month, benefitting from continued support from the Fed and as positive earnings. Developed ex-U.S. markets gained 1.8% in August as most countries advanced, while Korea (down 1.3%) and Hong Kong (down 0.9%) declined the most, due in part to concerns of the new announced regulatory requirements set to take effect in China. Emerging markets were up 3.0% with Thailand (up 10.8%) and the Philippines (up 10.4%) leading the gains at the end of August, according to ETFGI’s August 2021 Global ETFs and ETPs industry landscape insights report.

“The shift by investors from actively managed funds into ETFs which began in the US has been spreading into every corner of financial markets since the end of the 2007/08 global financial crisis. Active managers know that competition from ETFs is intensifying everywhere and they have to respond.” Deborah Fuhr, ETFGI founder, who is also a founder and board member of Women in ETFs “WE” the first women’s group for the ETF industry, told media.