ETFGI Reports Assets Invested In Smart Beta ETFs And ETPs Listed Globally Reached A New High Of $680 Bn At The End Of August 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$680 billion, following net inflows of US$5.90 billion and market moves during August. 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 report, an annual paid-for research subscription service.  (All dollar values in USD unless otherwise noted.) 

Highlights

• 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.
• 31^st 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 31^th 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

 
Top 10 Smart Beta ETPs by net new assets August 2018: Global

 
Investors have tended to invest in value and multi-factor methodology ETFs in August.