Global ETFs and ETPs lgathered net inflows of USD20.44 billion during March, bringing year-to-date net inflows to USD119.13 billion which is higher than the USD99.06 billion gathered at this point last year. Assets invested in the global ETFs/ETPs industry have decreased by 11.1 per cent, from USD6.04 trillion at the end of February 2020, to USD5.37 trillion at the end of March, according to ETFGI’s March 2020 Global ETFs and ETPs industry landscape insights report, an annual paid-for research subscription service.
The global ETFs industry celebrated its 30th anniversary on 9 March, 2020 – 30 years since the listing of the first successful ETF – the Toronto Stock Exchange listed the Toronto 35 Index Participation Fund, known as TIPs. That ETF still exists today and is now known as the iShares S&P/TSX 60 index ETF XIU with assets of CUSD7.81billon, now owned by BlackRock. The first successful ETF launch in the US, the SPDR S&P 500 ETF Trust ticker SPY, was nearly three years later on January 22, 1993 by State Street Global Advisors. SPY is the world’s largest ETF with USD252.54 billion in assets under management.
“At the end of March, the S&P 500 was down 12.35 per cent as the pandemic (Covid-19) forced US government to take strict measures and set some form of lockdown around the states reinforcing the fear for deep recession and high unemployment. Outside the US, the S&P Developed ex-U.S. BMI plummeted nearly 14.29 per cent. The S&P Emerging BMI dove 16.97 per cent during the month and Global equities as measured by the S&P Global BMI plunged 14.32 per cent as well.” According to Deborah Fuhr, managing partner, founder and owner of ETFGI.
At the end of March 2020, the Global ETFs/ETPs industry had 7,996 ETFs/ETPs, with 16,031 listings from 450 providers on 72 exchanges in 58 countries.
ETFs/ETPs listed globally gathered net inflows of USD20.44 billion during March. Equity ETFs/ETPs listed globally gathered net inflows of USD31.02 billion, bringing net inflows for 2020 to USD69.00 billion, greater than the USD36.16 billion in net inflows equity products had attracted by the end of March 2019. Fixed income ETFs/ETPs listed globally reported net outflows of USD26.88 billion during March, bringing net inflows for 2020 to USD9.01 billion, lower than the USD56.28 billion in net inflows fixed income products had attracted by the end of March 2019. Commodity ETFs/ETPs reported USD10.46 billion in net inflows bringing net inflows for 2020 to USD19.99 billion, which is greater than the USD864 million in net inflows gathered at this point in 2019.
Substantial inflows can be attributed to the top 20 ETFs by net new assets, which collectively gathered USD79.82 billion at the end of March, the SPDR S&P 500 ETF Trust (SPY US) gathered USD13.10 billion alone.
Investors have tended to invest in Equity, Gold and short term fixed income ETFs in March.