ETFGI reported that assets invested in Smart Beta ETFs and ETPs listed globally reached a new high of US$680 billion, following net inflows of US$5.90 billion and market moves during August…
By Deborah Fuhr, Managing Partner at ETFGI
Strong inflows during the month were primarily driven by US equities, according to ETFGI’s August 2018 Smart Beta: Global ETF and ETP industry landscape insights repor. (All dollar values in USD unless otherwise noted.)
Total Assets in Smart Beta ETFs and ETPs listed globally reached a record $680 Bn at the end of August.
Net new assets gathered by ETFs/ETPs listed globally were $5.90 Bn in August.
31st consecutive months of net inflows into Smart Beta ETFs/ETPs listed globally.
“On August 22, 2018 the S&P 500 marked its longest bull market – 3,453 days, without a bear market – a 20% drop from the index’s 52-week high.
August was a strong month for U.S. equities with economic strength and strong corporate earnings pushing the S&P 500 to reach record highs and gain 3.26% during the month and up 9.94% year to date.
Most non-US markets suffered declines during August due to investors’ concerns over trade tensions, Brexit, currency crises and a fear of contagion.
Developed markets ex US declined 1.44% in August while up 0.46% YTD, EM markets were down 3.51% and are down 0.81% YTD and Frontier markets were down 4.50% and are down 1.66% YTD.” according to Deborah Fuhr, managing partner and a founder of ETFGI.
At the end of August 2018, the Global Smart Beta ETF/ETP industry had 1,240 ETFs/ETPs, with 2,265 listings, assets of $680 Bn, from 151 providers listed on 38 exchanges in 31 countries.
Following net inflows of $5.90 Bn and market moves during the month, assets invested in ETFs/ETPs listed globally increased by 3.19%, from $659 Bn in July 2018 to $680 Bn.
Comparison of assets in market cap, smart beta, other and active equity products
August marked the 31th consecutive month of net inflows into ETFs/ETPs listed globally, Year-to-date, Assets held by Smart Beta products have increased 12.1% from $607 Bn. Value factor ETFs/ETPs attracted the greatest net inflows during August, with $2.14 Bn, bringing year-to-date net inflows to $12.15 Bn.
Substantial inflows during August can be attributed to the top 20 Smart Beta ETFs by net new assets, which collectively gathered $5.59 Bn. The Vanguard Value ETF (VTV US) gathered $821 Mn, the largest net inflows in August.
Top 20 Smart Beta ETFs by net new assets August 2018: Global
|Vanguard Value ETF||VTV US||43,764||139||5,439||821|
|iShares Edge MSCI USA Momentum Factor ETF||MTUM US||10,320||97||3,830||573|
|iShares MSCI USA Minimum Volatility ETF||USMV US||16,236||92||80||572|
|Vanguard Dividend Appreciation ETF||VIG US||30,063||75||759||354|
|SPDR S&P 600 Small Cap Value ETF||SLYV US||2,084||27||795||340|
|MAXIS NIKKEI225 ETF||1346 JP||13,233||8||1,365||312|
|iShares Edge MSCI USA Quality Factor ETF||QUAL US||6,268||36||1,456||269|
|One ETF Nikkei 225||1369 JP||3,469||0||533||266|
|Invesco Canadian Dividend Index ETF||PDC CN||512||12||297||229|
|iShares S&P Small-Cap 600 Value ETF||IJS US||7,032||27||992||212|
|Franklin LibertyQ US Equity ETF||FLQL US||385||11||255||209|
|Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF||GSLC US||3,980||24||922||188|
|iShares Core Dividend Growth ETF||DGRO US||4,257||23||1,354||186|
|Daiwa ETF NIKKEI 225||1320 JP||23,902||9||1,658||176|
|iShares U.S. Preferred Stock ETF||PFF US||17,223||98||(386)||170|
|Vanguard Mid-Cap Value ETF||VOE US||9,374||31||779||154|
|iShares Edge MSCI Minimum Volatility Emerging Markets ETF||EEMV US||4,667||31||156||146|
|iShares S&P Small-Cap 600 Growth ETF||IJT US||7,254||32||1,022||142|
|First Trust NYSE Arca Biotechnology Index Fund||FBT US||2,318||15||736||136|
|SciBeta HFE Europe Equity 6F EW UCITS ETF||EHEF LN||207||0||178||131|
Top 10 Smart Beta ETPs by net new assets August 2018: Global
|iPath S&P 500 VIX Short-Term Futures ETN||VXX US||980||1,158||(355)||227|
|VelocityShares Daily 2x VIX Short Term ETN||TVIX US||531||345||537||174|
|VelocityShares Daily 3x Inverse Natural Gas ETN||DGAZ US||311||128||84||137|
|MicroSectors FANG+ Index 3X Leveraged ETNs||FNGU US||158||6||135||77|
|MicroSectors FANG Index 2X Leveraged ETN||FNGO US||56||(0)||53||53|
|MicroSectors FANG Index Inverse ETN||GNAF US||47||(0)||49||49|
|MicroSectors FANG Index 2X Inverse Leveraged ETN||FNGZ US||44||(0)||47||47|
|FI Enhanced Global High Yield ETN||FIHD US||1,444||4||330||34|
|ProShares VIX Short-Term Futures||VIXY US||146||54||(36)||26|
|ProShares Ultra VIX Short-Term Futures||UVXY US||593||294||138||19|
Investors have tended to invest in value and multi-factor methodology ETFs in August.