ETFGI Reports Currency Hedged ETFs And ETPs Listed Globally Gathered Net Inflows Of US$506 Million During September

ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that currency hedged ETFs and ETPs listed globally gathered net inflows of US$506 billion during September 2018. Total assets decreased to US$146 billion at the end of September 2018, down 0.52% from US$147 billion at the end of August, according to ETFGI’s September 2018 Currency Hedged ETF and ETP industry landscape insights report, an annual paid-for research subscription service.  (All dollar values in USD unless otherwise noted.)
 
Highlights

• Assets invested in Currency Hedged ETFs/ETPs listed decreased by 0.52% during September 2018 to $506 Mn.
• In September 2018, Currency Hedged ETFs/ETPs listed Globally saw net inflows of $506 Bn.
• Year-to-date, assets invested in Currency Hedged ETFs & ETPs have remained unchanged.

“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 Globally. 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, there are 722 currency hedged ETFs/ETPs, with 1,491 listings, from 68 providers on 27 exchanges. Due to net inflows and market moves the assets invested in currency hedged ETFs/ETPs listed in the Globally decreased by 0.52%, from $147 Bn in August 2018 to $146 Bn.
 
Currency Hedged ETF and ETP asset growth as at end of September 2018
 
 
 
Euro hedged ETFs/ETPs attracted the largest net inflows during September with $319 Mn, bringing net inflows for 2018 to $4.31 Bn. Total assets invested in Euro hedged ETFs/ETPs reached $44.3 Bn by the end of September. ETFs/ETPs hedged against the US dollar hold the most assets, at $51.5 Bn, despite seeing net outflows of $6.65 Bn year-to-date. 
 
A high proportion of net inflows during September can be attributed to the top 10 ETFs/ETPs by net new assets, which collectively gathered $6.01 Bn. The Vanguard Total International Bond ETF USD Hedged (BNDX US) attracted net inflows of $351 Mn, the largest in September.
 
Top 10 ETFs/ETPs by net new assets September 2018: Global
 

 
Investors have tended to invest in currency hedged large cap ETFs in September.