Global exchange-traded fund and exchange-traded product assets have reached a new record high of USD2.3trn on the back of net inflows of USD32.6bn in October, according to preliminary findings from ETFGI.
“The expectation that the Federal Reserve will maintain its QE scheme at its current size into 2014 and positive market performance encouraged investors to put net inflows of USD32.6 n back into the market through ETFs/ETPs,” says Deborah Fuhr, managing partner at ETFGI.
In October 2013, equity ETFs/ETPs gathered the largest net inflows with USD34.6bn, while commodity ETFs/ETPs experienced the largest net outflows with USD2.8bn followed by fixed income ETFs/ETPs that had net outflows of USD227m.
Year to date (YTD) through end of October, global ETF/ETP assets have increased by 19 per cent based on positive market performance and net inflows of USD202.2bn, which is in line with the level of net inflows at this point in 2012. Equity ETFs/ETPs gathered the largest net inflows with USD193.9bn which is significantly higher than the USD112.7bn at this point in 2012, followed by fixed income ETFs/ETPs with inflows of USD21.4bn which is less than half the USD56.2bn gathered YTD in 2012. Commodity ETFs/ETPs experienced outflows USD33.0bn which is a reversal of the USD20.1bn net inflows at this point in 2012.
Equities have been the preferred area to invest new assets in 2013 with net inflows of USD193.9bn. North American equity ETFs/ETPs have gathered the largest net inflows YTD with USD117.7bn, followed by developed Asia Pacific equity with USD32.8bn, and developed European equity with USD20.7bn, while emerging market equity ETFs/ETPs experienced net outflows YTD with USD6.3bn.
YTD, Vanguard ranks first based on net inflows of USD51.6bn, iShares is second with USD51.3bn, WisdomTree is third with USD12.8bn, PowerShares is fourth with USD12.6bn and SPDR is fifth with USD9.5bn.