ETFs and ETPs listed in Latin America gathered net inflows of USD635 million during December, according to ETFGI’s December 2018 Latin American ETF and ETP industry landscape insights report, an annual paid-for research subscription service.
During the month, total assets invested in the Latin American ETF and ETP industry increased 8.15 per cent, from USD7.81 billion at the end of November, to USD8.44 billion.
“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 Latin American ETF/ETP industry had 48 ETFs/ETPs, with 1,196 listings, assets of USD8.44billion, from 36 providers listed on 5 exchanges. Following net inflows of USD635 million and market moves during the month, assets invested in ETFs/ETPs listed in Latin America increased by 8.15 per cent, from USD7.81billion at the end of November 2018, to USD8.44 billion.
Equity ETFs/ETPs listed in Latin America attracted net inflows of USD609 million in December, growing net inflows for 2018 to USD2.78billion, more than the USD1.09billion in net inflows at this point last year. Fixed Income ETFs and ETPs listed in Latin America saw net outflows of USD4 million, bringing net inflows for 2018 to USD60 million, a considerable change compared to the USD36 million in net outflows at this point last year.
Substantial inflows during December can be attributed to the top 10 ETFs by net new assets, which collectively gathered USD674 million. The It Now Ibovespa Fundo de Indice ETF (BOVV11 BZ) gathered USD267 million, the largest net inflow in December. Investors have tended to invest in core, market cap and lower cost ETFs in December.