ETFGI reported that assets invested in ETFs and ETPs listed globally amounted to US$4.82 trillion at the end of Q4 2018, following net inflows of US$164.84 billion and market moves during the period…..
By Deborah Fuhr, Managing Partner at ETFGI
The Global Hedge Fund industry saw assets fall to US$3.11 trillion, with net outflows of US$22.5 billion during the quarter, according to ETFGI’s Q4 2018 Global ETF and ETP industry landscape insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Asset growth of global ETF/ETP industry continues to outpace global Hedge Fund industry.
$4.82 trillion invested in 7,620 ETFs/ETPs listed globally at end of 2018.
$3.11 trillion invested in 8,311 Hedge Funds listed globally at end of 2018.
According to analysis by ETFGI, $4.82 Tn was invested in 7,620 ETFs/ETPs listed globally at the end of 2018, representing growth in assets of -0.49% over the year, impacted by sharp declines in the major indices during the last quarter.
During 2018, assets invested in Hedge Funds globally fell by 3.24% to $3.11 Tn in 8,311 hedge funds, according to a report by Hedge Fund Research.
Comparatively, assets invested in ETFs/ETPs had increased 36.23%, from $3.55 Tn to $4.84 Tn in 2017. Over the same period, assets invested in the Global hedge fund industry increased 6.37%, from $3.02 Tn to $3.22 Tn.
The HFRI Fund weighted composite index returned -5.76% in Q4 compared to -13.52% of the S&P 500 index (w/dividends), as many Hedge Funds strategies positioned for a market correction finally came to fruition.
Despite this, investors still ploughed money into passive funds, with ETFs/ETPs attracting $164.84 Bn in Q4, while withdrawing $22.5 Bn from Hedge Funds.
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.
In 2018 the return of the S&P 500 Index was marginally better than the performance of the HFRI Fund weighted Composite index: -4.39% vs. -4.49%, respectively.
Returns of the HFRI Fund Weighted Composite Index and the S&P 500 Index
|
Year |
HFRI Fund Weighted |
S&P 500 |
|
Composite Index |
Index w/ dividends |
|
|
2011 |
-5.25% |
2.09% |
|
2012 |
6.36% |
15.99% |
|
2013 |
9.13% |
32.36% |
|
2014 |
2.98% |
13.65% |
|
2015 |
-1.12% |
1.38% |
|
2016 |
5.44% |
11.93% |
|
2017 |
8.68% |
21.80% |
|
2018 |
-4.49% |
-4.39% |
Sources: Hedge Fund Research HFR, S&P Dow Jones Indices
During 2018, ETFs/ETPs listed globally gathered $516 Bn in net inflows, according to ETFGI’s Global ETF and ETP industry insight report. December 2018 also marked the 59th consecutive month of net inflows into ETFs/ETPs. Over the same period, HFR reported net outflows of $33.5 Bn from Hedge Funds. Assets invested in the global ETF/ETP industry continue to grow, extending their lead over assets invested in the global hedge fund industry, the gap widening by 5.30%, from $1.62 Tn at the end of 2017 to $1.71 Tn.
The top 20 ETFs by net new assets in 2018, collectively gathered $206 Bn. The TOPIX Exchange Traded Fund (1306 JP) alone accounted for net inflows of $22.29 Bn over the period.
Top 20 ETFs by net new assets 2018: Global
| Name |
Ticker |
Assets |
NNA |
NNA |
| TOPIX Exchange Traded Fund | 1306 JP |
71,167 |
2,166 |
22,288 |
| iShares Core MSCI EAFE ETF | IEFA US |
52,331 |
860 |
20,802 |
| iShares Core S&P 500 ETF | IVV US |
147,540 |
2,470 |
18,592 |
| iShares Core MSCI Emerging Markets ETF | IEMG US |
49,202 |
1,142 |
15,738 |
| Vanguard S&P 500 ETF | VOO US |
90,519 |
(2,092) |
13,418 |
| iShares Short Treasury Bond ETF | SHV US |
20,690 |
3,340 |
12,672 |
| Daiwa ETF TOPIX | 1305 JP |
34,176 |
1,355 |
11,166 |
| Vanguard Total Stock Market ETF | VTI US |
93,577 |
1,987 |
9,848 |
| Vanguard FTSE Developed Markets ETF | VEA US |
65,145 |
2,080 |
9,639 |
| iShares 1-3 Year Treasury Bond ETF | SHY US |
20,624 |
3,357 |
9,288 |
| Listed Index Fund TOPIX | 1308 JP |
31,765 |
1,264 |
9,198 |
| Vanguard Value ETF | VTV US |
41,408 |
1,167 |
8,404 |
| Nikkei 225 Exchange Traded Fund | 1321 JP |
50,018 |
1,210 |
7,319 |
| SPDR Bloomberg Barclays 1-3 Month T-Bill ETF | BIL US |
8,668 |
1,696 |
6,724 |
| iShares Core S&P Small-Cap ETF | IJR US |
37,292 |
8 |
5,733 |
| iShares Core MSCI Total International Stock ETF | IXUS US |
11,989 |
299 |
5,693 |
| iShares Core U.S. Aggregate Bond ETF | AGG US |
57,078 |
2,669 |
5,559 |
| JPMorgan Ultra-Short Income ETF | JPST US |
5,129 |
719 |
5,065 |
| iShares Floating Rate Bond ETF | FLOT US |
11,319 |
(1,003) |
4,830 |
| iShares Core S&P 500 UCITS ETF | CSSPX SW |
28,664 |
(229) |
4,559 |
Similarly, the top 10 ETPs by net new assets collectively gathered $9.99 Bn by the end of 2018.
Top 10 ETPs by net new assets 2018: Global
| Name |
Ticker |
Assets |
NNA |
NNA |
| Xtrackers Physical Gold ETC (EUR) | XAD5 GY |
2,536 |
110 |
1,884 |
| iShares Gold Trust | IAU US |
11,545 |
345 |
1,599 |
| Barclays ETN+ FI Enhanced Global High Yield ETN | FIYY US |
1,285 |
(39) |
1,259 |
| iShares Physical Gold ETC | SGLN LN |
4,350 |
635 |
1,170 |
| ProShares Short VIX Short-Term Futures | SVXY US |
338 |
0 |
1,051 |
| Barclays ETN+ FI Enhanced Europe 50 ETN | FFEU US |
616 |
16 |
806 |
| NH QV KOSPI Volatility Matching Strangle ETN 57 | 550057 KS |
629 |
623 |
623 |
| ETFS Physical Gold | PHAU LN |
6,662 |
295 |
536 |
| VelocityShares Daily 3x Inverse Natural Gas ETN | DGAZ US |
377 |
(382) |
534 |
| FI Enhanced Global High Yield ETN | FIHD US |
1,391 |
70 |
528 |
