ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reported today that assets invested in the global ETFs and ETPs industry extended its lead over the global hedge fund industry to US$3.58 trillion at the end of Q3 2020, an increase of 18.15% since 2019. (All dollar values in USD unless otherwise noted.)
Highlights
- Assets invested in the global ETFs and ETPs industry extended its lead over the global hedge fund industry to US$3.58 trillion at the end of Q3 2020
- Year to date through the end of Q3 the HFRI Fund Weighted Composite Index was up 0.64%, while the S&P 500 Index with dividends has increased 5.37%
- Hedge fund gathered net inflows of $13 billion at the end of Q3 while ETFs/ETPs gathered net inflows of $194.4 billion
Assets invested in the global ETF/ETP industry first surpassed those invested in the hedge fund industry at the end of Q2 2015, as ETFGI had forecasted. Growth in assets in the ETF/ETP industry has outpaced growth in the hedge fund industry since the financial crisis in 2008.
According to ETFGI’s research $6.89 trillion were invested in 8,402 ETFs/ETPs listed globally at the of Q3 2020, representing an increase in assets of 9.76% over the quarter. Over the same period assets invested in hedge funds globally increased by 4.2%, to $3.31 trillion in 8,019 hedge funds, according to a report by HFR®
During the third quarter of 2020 ETFs/ETPs listed globally gathered $194.4 billion in net inflows, according to ETFGI’s Global ETF and ETP industry insights report. In contrast, HFR reported that hedge funds gathered net inflows of $13 billion in Q3 2020.
Growth in global ETF/ETP and global hedge fund assets, as at end of September 2020
Source: ETFGI data sourced from ETF/ETP sponsors, exchanges, regulatory filings, Thomson Reuters/Lipper, Bloomberg, publicly available sources and data generated in-house. Hedge fund data is from HFR®
In Q3 2020 the performance of the HFRI Fund Weighted Composite Index was up 4.24%, while the S&P 500 Index with dividends was up 8.92%. Year to date, the HFRI Fund Weighted Composite Index was up 0.64%, while the S&P 500 Index with dividends was up 5.37%.
Sources: HFR® and ETFGI.
