ETFGI Reports ETFs And ETPs Listed In Latin America Gather Net Inflows Of US$40 Mn During November 2018

ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that ETFs and ETPs listed in Latin America gathered net inflows of US$40 Mn during November. Total assets invested in the Latin American ETF and ETP industry fell 2.06%, from US$7.97 Bn at the end of September, to US$7.81 Bn, according to ETFGI’s November 2018 Latin America 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 ETFs and ETPs listed in Latin America decline 2.06% to $7.81 Bn in November.
• Net new assets gathered by ETFs/ETPs listed in Latin America were $40 Mn in November.
• Equity-based and leveraged products saw the largest positive inflows during the month.

 
“While trade talks continue to make noise in the headlines, the very real prospect of slowing global growth appears to be filtering into market sentiment. A seemingly more reposed approach to monetary policy along with the China-US trade truce provided enough of a tailwind to lift US markets to finish in the green by the end of November, with the S&P 500 gaining 2.04% over the month bringing the year-to-date gain to 5.11%. Apart from the Eurozone, where various domestic issues continue to dominate, most developed markets closed the month with marginal gains, the S&P developed ex-US BMI was up 0.17% in November with year-to-date declines of 9.66%. EM and Frontier markets bounced back from the October fall, finishing up 4.61% and 1.94% respectively, softening year-to-date declines to 11.15% and 8.95%”  according to Deborah Fuhr, managing partner and a founder of ETFGI.

At the end of November 2018, the Latin American ETF/ETP industry had 47 ETFs/ETPs, with 1,170 listings, assets of $7.81 Bn, from 36 providers listed on 5 exchanges. Following net inflows of $40 Mn and market moves during the month, assets invested in ETFs/ETPs listed in Latin America decreased by 2.06%, from $7.97 Bn at the end of October 2018, to $7.81 Bn.

Growth in Latin American ETF and ETP assets as of the end of November 2018

 
 
Equity ETFs/ETPs listed in Latin America attracted net inflows of $42 Mn in November, growing net inflows for 2018 to $2.17 Bn, more than the $1.27 Bn in net inflows at this point last year. Fixed Income ETFs and ETPs listed in Latin America saw net inflows of $0.09 Mn, bringing net inflows for 2018 to $40 Mn, greater than the $32 Mn in net outflows at this point last year.

Substantial inflows during November can be attributed to the top 10 ETFs by net new assets, which collectively gathered $334 Mn. The It Now Ibovespa Fundo de Indice ETF (BOVV11 BZ) gathered $277 Mn, the largest net inflow in November. 

Top 10 ETFs by net new assets November 2018: Latin America
 

 
 
Investors have tended to invest in core, market cap and lower cost ETFs in November.