ETFGI Reports Assets Invested In Smart Beta ETFs And ETPs Listed Globally Reached A New High Of US$687 Bn At The End Of September 2018

ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that assets invested in Smart Beta ETFs and ETPs listed globally reached a new high of US$687 billion, following net inflows of US$9.15 billion and market moves during September. The trend towards products providing exposure to the US continued, with equity-based products tracking the core US indices seeing substantial inflows, according to ETFGI’s September 2018 Smart Beta: Global ETF and ETP industry landscape insights report, an annual paid-for research subscription service.  (All dollar values in USD unless otherwise noted.) 

Highlights

• Total Assets invested in Smart Beta ETFs and ETPs listed globally reached a record $687 Bn at the end of September.

• Smart Beta ETFs/ETPs listed globally attracted $9.15 Bn in September.
• 32^nd consecutive months of net inflows into Smart Beta ETFs/ETPs listed globally. 

 
“Developed markets were broadly up during September following positive economic data from the US, Japan and Eurozone, despite the US-China trade dispute and on-going political tension in Europe. Developed Markets ex-US gained 0.68% during the month while the S&P 500’s winning streak tapered off, gaining only 0.57%, with mid to small cap US equities closing down. Developing markets downward trend continued, with EM markets down 1.37% and Frontier markets down 0.18%, bringing year to date declines to 8.08% and 7.56%, respectively.” according to Deborah Fuhr, managing partner and a founder of ETFGI.

 At the end of September 2018, the Global Smart Beta ETF/ETP industry had 1,274 ETFs/ETPs, with 2,312 listings, assets of $687 Bn, from 153 providers listed on 38 exchanges in 31 countries. Following net inflows of $9.15 Bn and market moves during the month, assets invested in ETFs/ETPs listed globally increased by 0.88%, from $680 Bn in August 2018 to $687 Bn.

Comparison of assets in market cap, smart beta, other and active equity products 



September marked the 32^nd consecutive month of net inflows into ETFs/ETPs listed globally, Year-to-date, Assets held by Smart Beta products have increased 13.1% from $607 Bn. Alternative weight ETFs/ETPs attracted the greatest net inflows during September, with $2.89 Bn, bringing year-to-date net inflows to $13.4 Bn.

Substantial inflows during September can be attributed to the top 20 Smart Beta ETFs/ETPs by net new assets, which collectively gathered $6.39 Bn.  The First Trust NYSE Arca Biotechnology Index Fund (VTV US) gathered $782 Mn, the largest net inflow in September. 

Top 20 Smart Beta ETFs/ETPs by net new assets September 2018: Global
 

 
Investors have tended to invest in alternative weighting and performance methodology smart beta ETFs/ETPs in September.