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ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in ETFs and ETPs listed in Latin America increased by 45.8% during 2017 to reach US$6.80 Bn at the end of December. (All dollar values in USD unless otherwise noted.)
Highlights
- Assets invested in ETFs/ETPs listed in Latin America increased by $2.13 billion during the year, to reach $6.80 billion.
- As the majority of ETFs listed in Latin America are cross listings, the assets sit in the primary listing typically in the United States.
- Year-to-date, through end of December 2017, ETFs and ETPs listed in Latin America saw net inflows of $1.20 Bn.
According to ETFGI’s December 2017 Latin America ETF and ETP industry insights report, an annual paid-for research subscription service, assets invested in ETFs/ETPs listed in Latin America grew by $2.13 Bn during 2017. The increase of 45.8%, from $4.66 Bn at the end of 2016, also represents the greatest growth in assets since 2009 when markets recovered following the 2008 financial crisis.
This was achieved on the eve of another milestone for the ETF industry: the 25th anniversary of the listing of the first ETF in the US, the venerable SPDR S&P 500 ETF (SPY US), on 22nd January 1993. At the end of 2017, SPY on its own accounted for assets of $271.39 Bn.
During 2017 ETFs/ETPs listed in Latin America saw net inflows of $1.20 Bn.
The majority of these flows can be attributed to the top 20 ETFs by net new assets, which collectively gathered $1.37 Bn during 2017. The iShares Ibovespa Fundo de Indice (BOVA11 BZ) on its own accounted for net inflows of $434.45 Mn.
Top 10 ETFs by net new assets: Latin America
Equity ETFs/ETPs listed in Latin America suffered net outflows of $181.52 Mn in December, taking net inflows for 2017 to $1.09 Bn. Fixed Income ETFs and ETPs experienced net outflows of $3.18 Mn in December, bringing net outflows for 2017 to $35.51 Mn.
To conclude, investors have tended to invest in lower cost and core ETFs in 2017 with the iShares Ibovespa Fundo de Indice (BOVA11 BZ) accumulating net inflows of $434.45 Mn and a TER of 54bp.
