ETFs and ETPs listed in the US gathered net inflows of USD51.4 billion during December, bringing 2018 net inflows to USD315 billion, according to ETFGI’s December 2018 US ETF and ETP industry landscape insights report.
Assets invested in the US ETF/ETP industry finished the month down 5.59 per cent, from USD3.59 trillion at the end of November, to USD3.39 trillion, an annual paid-for research subscription service.
During 2018, ETFs/ETPs listed in the US attracted USD315 billion in net inflows. Assets invested in the US ETF/ETP industry hit record high of USD3.73 trillion in September 2018, while assets invested in US ETF/ETP industry fell 0.95 per cent year-on-year, hit by Q4 2018 market movements.
“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 fared 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.
At the end of December 2018, the US ETF/ETP industry had 2,241 ETFs/ETPs, a 5.91 per cent increase over 2017, from 148 providers listed on 3 exchanges. Following net inflows of USD51.4 billion and market moves during the month, assets invested in ETFs/ETPs listed in the US decreased by 5.59 per cent, from USD3.59 trillion at the end of November 2018, to USD3.39 trillion. By the end of the year, assets invested in the US ETF/ETP industry were down 0.95 per cent compared to that of 2017, falling from USD3.42 trillion to USD3.59 trillion.
Equity ETFs/ETPs listed in the US attracted net inflows of USD34.8 billion in December, bringing net inflows for 2018 to USD208 billion, less than the USD332 billion in net inflows equity products attracted in 2017. Fixed Income ETFs and ETPs listed in the US saw net inflows of USD14.1 billion in December, bringing net inflows for 2018 to USD75 billion, less than the USD114 billion in net inflows seen in 2017.
Substantial inflows during December can be attributed to the top 20 ETFs by net new assets, which collectively gathered USD38.3 billion. The iShares 1-3 Year Treasury Bond ETF (SHY US) gathered USD3.36 billion, the largest net inflow in December.