ETFs and ETPs listed globally gathered net inflows of USD76.24 billion during December, the second highest net inflow on record, rivalled only by January 2018, which saw inflows of USD105.70 billion.
Total Assets invested in the global ETF and ETP industry fell 5.28 per cent by the end of December, from USD5.06 trillion at the end of November, to USD4.79 trillion, according to ETFGI’s December 2018 Global ETF and ETP industry landscape insights report.
“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 per cent during December, and down -4.38 per cent for 2018. Developed markets ex-US fell -4.62 per cent during December, led by Japan and Canada, bringing the yearly return to -13.21 per cent. Relatively speaking, EM and FM faired the month better, returning -2.68 per cent and -3.15 per cent, finishing 2018 -13.53 per cent and -11.82 per cent, respectively,” says 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 USD5 trillion for the first time. The record for assets invested in ETFs/ETPs was set in September 2018 at USD5.26 trillion, an 8.6 per cent 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 per cent, 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 USD4.79 trillion, from 401 providers listed on 71 exchanges in 57 countries. Following net inflows of USD76.24 billion and market moves during the month, assets invested in ETFs/ETPs listed globally decreased by 5.28 per cent, from USD5.06 trillion at the end of November 2018, to USD4.79 trillion.
Equity ETFs/ETPs listed globally attracted net inflows of USD50.87 billion in December, growing net inflows for 2018 to USD362 billion, less than the USD471 billion in net inflows seen by equity-based products during 2017. Fixed Income ETFs and ETPs listed globally saw net inflows of USD21.17 billion in December, bringing net inflows for 2018 to USD107 billion, less than the USD142 billion 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 USD516 billion, less than the USD654 billion 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 USD40.79 billion. The iShares 1-3 Year Treasury Bond ETF (SHY US) gathered USD3.36 billion, the largest net inflow in December.