ETFGI Reports ETFs And ETPs Listed In The Middle East And Africa Saw Outflows Of US$273 Million During December 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 the Middle East and Africa saw net outflows of US$273 million during December. Over the month, total assets invested in the Middle East and African ETF and ETP industry decreased 7.75%, from US$31.63 billion at the end of November, to US$29.18 billion, according to ETFGI’s December 2018 Middle East and Africa 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 ETFs and ETPs listed in the Middle East and Africa decreased 7.75% to $29.18 Bn by the end of December.
• Year-to-date, assets have decreased 35.66% from $45.35 Bn at the end of 2017.
• Actively managed products attracted the greatest net new assets during the month.

“The end of 2018 saw the trend in developed markets reverse, and although arguably predictable, the severity left many pundits scratching their heads. This end of year stress has widely been attributed to the disruption caused by trade disputes feeding into economic data, and the view policy makers are not going to be quite as accommodating as initially expected. The S&P 500 returned -9.03% during December, and down -4.38% for 2018. Developed markets ex-US fell -4.62% during December, led by Japan and Canada, bringing the yearly return to -13.21%. Relatively speaking, EM and FM fared the month better, returning -2.68% and -3.15%, finishing 2018 -13.53% and -11.82%, respectively” according to Deborah Fuhr, managing partner and founder of ETFGI.
 
At the end of December 2018, the Middle East and African ETF/ETP industry had 746 ETFs/ETPs, with 760 listings, assets of $29 Bn, from 45 providers listed on 14 exchanges. Following net outflows of $273 Mn and market moves during the month, assets invested in ETFs/ETPs listed in the Middle East and Africa decreased by 7.75%, from $31.63 Bn at the end of November 2018, to $29.18 Bn.

 
Growth in the Middle East and African ETF and ETP assets as of the end of December 2018



 
Equity ETFs/ETPs listed in the Middle East and Africa saw net outflows of $147 Mn in December, growing net outflows for 2018 to $1.74 Bn, greater than the $1.64 Bn of net outflows seen in 2017. Fixed Income ETFs and ETPs listed in the Middle East and Africa saw net outflows of $64 Mn, bringing net outflows for 2018 to $1.21 Bn, greater than the $587 Mn in net outflows for 2017.

The top 10 ETFs by net new assets collectively gathered $47 Mn in December. The Sygnia Itrix MSCI World (SYGWD SJ) gathered $25 Mn, the largest net inflow in December. 

Top 10 ETFs by net new assets December 2018: Middle East and Africa

 

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