Assets invested in ETFs and ETPs listed In Asia Pacific (ex-Japan) reached a record high of USD197 billion at the end of December 2018, surpassing the previous record set at the end of the previous month, according to ETFGI’s December 2018 Asia Pacific (ex-Japan) ETF and ETP industry insights report.
According to the annual paid-for research subscription service, assets invested in ETFs/ETPs listed in Asia Pacific (ex-Japan) increased by 2.9 per cent from USD191 billion at the end of November. Over the year, assets have increased by 15.6 per cent from USD170 billion at the end of 2017. At the end of December 2018, the Asia Pacific (ex-Japan) ETF/ETP industry 1,389 ETFs/ETPs, with 1,544 listings, from 142 providers on 17 exchanges.
“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.
In December 2018, ETFs/ETPs listed in Asia Pacific (ex-Japan) saw net inflows of USD9.82 billion. Equity products gathered the largest net inflows with USD7.99 billion, while active ETFs/ETPs experienced the largest net outflows with USD183 Mn. For the whole of 2018, ETFs/ETPs listed in Asia Pacific (ex-Japan) have seen net inflows of USD58.3 billion. Equity products gathered the largest net inflows with USD40.3 billion, while currency ETFs/ETPs experienced the largest net outflows with USD150 Mn.
A high proportion of net inflows can be attributed to the top 20 ETFs by net new assets, which collectively gathered USD9.61 billion. The Reliance CPSE ETF (CPSEBE IN) on its own accounted for net inflows of USD2.34 billion.