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Record net inflows of $73.4 billion in Q1 helped to push assets invested globally in Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) to a new all-time high of $2.09 trillion at the end of Q1 2013, according to figures from ETFGI’s Global ETF and ETP industry insights report for Q1. At the end of Q1 there were 4,778 ETFs and ETPs, with 9,847 listings, assets of $2.09 billion, from 209 providers listed on 56 exchanges. ETF and ETP assets have increased by 7.3% from $1.95 trillion to $2.09 trillion during Q1.
ETFs and ETPs recorded $23.9 billion in net inflows in March 2013. Equity ETFs and ETPs gathered the largest net inflows with $17.0 billion, followed by fixed income with $5.6 billion, and leverage inverse with $1.0 billion, while commodity ETFs and ETPs experienced net outflows of $2.6 billion.
$16.6 billion, or the majority of the $17 billion of net inflows into equity ETFs and ETPs in March, was invested into US/North America exposure, followed by $5.3 billion into developed Asia Pacific, while emerging market equity experienced a net outflow of $5 billion.
Fixed income ETFs and ETPs gathered net inflows of $5.6 billion, with high yield gathering the largest net inflows with $1.6 billion, followed by government/corporate with $1.3 billion, and government bonds with $1.1 billion, while money market ETFs and ETPs experienced net outflows with $665 million.
Commodity ETFs and ETPs saw net outflows of $2.6 billion in March 2013. ETFs and ETPs providing exposure to precious metals experienced the largest net outflows with $2.1 billion, followed by energy with $363 million, and agriculture with $273 million, while broad commodity ETFs and ETPs gathered the largest net inflows $211 million.
Year-to-date through the end of Q1 2013, ETFs and ETPs have seen net inflows of $73.4 billion with Equity ETFs and ETPs gathering the largest net inflows of $62.5 billion, followed by fixed income with $8.4 billion, and leveraged inverse with $3.5 billion, while commodity ETFs and ETPs experienced the largest net outflows year to date with $7.9 billion.
“The increasing number of institutional investors globally using ETFs and ETPs is an important factor driving the growth in net new asset flows as well as the growth in total assets under management. Our analysis of reported share ownership of ETFs ETPs using the Thomson Reuters Share ownership database has found that the number of institutional investors that have used ETFs and ETPs globally has grown at a compound annual rate of 8.9% in the five years to 2011” according to Deborah Fuhr, Managing Partner at ETFGI.
iShares is the largest ETF and ETP provider with assets of $809 billion, reflecting 38.7% market share; SPDRs is second with $365 billion and 17.5% market share, followed by Vanguard with $279 billion and 13.3% market share. The top three ETF and ETP providers, out of 209, account for 69.5% of global ETF and ETP assets, while the remaining 206 providers each have less than 4% market share.
S&P Dow Jones has the largest amount of ETF and ETP assets tracking its benchmarks with $545 billion, reflecting 26.1% market share; MSCI is second with $442 billion and 21.2% market share, followed by Barclays with $187 billion and 8.9% market share.
