ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that ETFs and ETPs listed globally gathered US$8.69Bn in net inflows, the lowest monthly amount since January 2014 when the global ETF/ETP industry experienced net outflows of US$6.25Bn, according to ETFGI’s June 2018 Global ETF and ETP industry landscape insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
The S&P 500 was up 0.62% in June and 2.65% in the first half of 2018. International markets (developed ex US) and Emerging markets posted losses during June and during the first half of 2018, down 1.48% and 3.40% in June and 2.45% and 6.05% in the first half, respectively, driven by a strong dollar, trade concerns, and rising interest rates.
At the end of June 2018, the Global ETF/ETP industry had 7,430 ETFs/ETPs, with 14,237 listings, assets of US$4.986Tn, from 376 providers listed on 70 exchanges in 57 countries. Due to market moves the assets invested in ETFs/ETPs listed globally decreased by 0.35% from $5.004Tn in May 2018 to $4.986Tn.
Equity ETFs/ETPs listed globally gathered net inflows of $2.08 Bn in June bringing net inflows for 2018 to $150.21 Bn, which is less than the $239.54 Bn in net inflows at this point last year. Fixed Income ETFs and ETPs listed globally gathered net inflows of $7.58 Bn in June, growing net inflows for 2018 to $46.42 Bn which is less than the $84.08 Bn in net inflows at this point last year.
June marked the 53rd consecutive month of net inflows into ETFs/ETPs listed globally, Year-to-date in 2018 there have been net inflows of US$223.26 Bn which is 86.32% less than the US$347.73 Bn in net inflows at this point last year.
The majority of these flows can be attributed to the top 20 ETFs by net new assets, which collectively gathered $105.43 Bn during 2018. The iShares Core MSCI EAFE ETF (IEFA US) on its own accounted for net inflows of $18.07 Bn.
Similarly, the top 10 ETPs by net new assets collectively gathered $8.19 Bn year-to-date during 2018.
Investors have tended to invest in core, market cap and lower cost ETFs in June 2018 with the iShares Core MSCI EAFE ETF (IEFA US) and TOPIX Exchange Traded Fund (1306 JP) capturing most of the flows.