Total assets increased to US$835 billion at the end of August 2018, up 0.91% from US$828 billion at the end of July, according to ETFGI’s August 2018 Europe ETF and ETP industry landscape insights report…..
By Deborah Fuhr, Managing Partner at ETFGI
(All dollar values in USD unless otherwise noted.)
Highlights
- Assets invested in ETFs/ETPs listed in Europe increased by 0.91% during August 2018 to $835 Bn.
- In August 2018, ETFs/ETPs listed in Europe saw net inflows of $2.96 Bn.
- Year-to-date, assets have increased by 4.12% from $802 Bn at the end of 2017.
- Marks the 46th consecutive month of net inflows into ETFs/ETPs listed in Europe.
“On August 22, 2018 the S&P 500 marked its longest bull market – 3,453 days, without a bear market – a 20% drop from the index’s 52-week high.
August was a strong month for U.S. equities with economic strength and strong corporate earnings pushing the S&P 500 to reach record highs and gain 3.26% during the month and up 9.94% year to date.
Most non-US markets suffered declines during August due to investors’ concerns over trade tensions, Brexit, currency crises and a fear of contagion.
Developed markets ex US declined 1.44% in August while up 0.46% YTD, EM markets were down 3.51% and are down 0.81% YTD and Frontier markets were down 4.50% and are down 1.66% YTD.” according to Deborah Fuhr, managing partner and a founder of ETFGI.
At the end of August 2018, the Europe ETF/ETP industry had 2,324 ETFs/ETPs, with 7,893 listings, from 67 providers on 26 exchanges. Due to net inflows and market moves the assets invested in ETFs/ETPs listed in the Europe increased by 0.91%, from $828 Bn in July 2018 to $835 Bn.
European ETF and ETP asset growth as at end of August 2018
Equity based ETFs/ETPs attracted the largest net inflows during August with $3.37 Bn, bringing net inflows for 2018 to $27.90 Bn, less than the $45.16 Bn in net inflows at this point last year.
Fixed income ETFs/ETPs gathered net inflows of $615 Mn during August, bringing net inflows for 2018 to $9.20 Bn, considerably less than the $22.12 Bn in net inflows at this point last year.
Commodity based ETFs/ETPs experienced net outflows of $860 Mn during August, bringing net inflows for 2018 to $2.62 Bn, less than the $7.47 Bn in net inflows at this point last year.
A high proportion of net inflows during August can be attributed to the top 20 ETFs by net new assets, which collectively gathered $4.93 Bn. The Vanguard S&P 500 UCITS ETF (VUSA LN) saw net inflows of $678 Mn, the largest in August.
Top 20 ETFs by net new assets August 2018: Europe
| Name | Ticker | Assets (US$ Mn) Aug-18 | ADV (US$ Mn) Aug-18 | NNA (US$ Mn) YTD 2018 | NNA (US$ Mn) Aug-18 |
| Vanguard S&P 500 UCITS ETF | VUSA LN | 25,924 | 9 | 2,334 | 678 |
| iShares $ Floating Rate Bond UCITS ETF Acc | FLOA LN | 936 | 2 | 935 | 655 |
| iShares Core S&P 500 UCITS ETF | CSSPX SW | 31,247 | 8 | 2,793 | 600 |
| iShares Core MSCI World UCITS ETF | IWDA LN | 15,492 | 17 | 1,265 | 354 |
| iShares MSCI Europe UCITS ETF EUR (Dist) | IMEU LN | 5,264 | 1 | (401) | 321 |
| Xtrackers MSCI USA Swap UCITS ETF | XMUS GY | 3,348 | 0 | 264 | 276 |
| UBS ETF (LU) MSCI Canada UCITS ETF (CAD) A-dis | CANCDA SW | 1,131 | 1 | 706 | 178 |
| iShares S&P 500 EUR Hedged UCITS ETF (Acc) | IUSE LN | 4,564 | 3 | 1,128 | 173 |
| iShares $ Treasury Bond 7-10yr UCITS ETF | IBTM LN | 2,859 | 1 | 808 | 168 |
| BNP Paribas Easy S&P 500 UCITS ETF EUR Hedged Cap. | ESEH FP | 560 | 2 | 289 | 165 |
| Xtrackers S&P 500 Swap UCITS ETF | D5BM GY | 4,308 | 1 | 1,213 | 158 |
| Xtrackers DAX UCITS ETF | XDAX GY | 4,516 | 8 | 87 | 158 |
| Lyxor EUR 2-10Y Inflation expectations UCITS ETF | INFL FP | 1,550 | 0 | 294 | 135 |
| Invesco Bloomberg Commodity UCITS ETF (EUR) | CMOE IM | 137 | (0) | 135 | 135 |
| iShares EURO STOXX UCITS ETF (DE) | SXXEEX GY | 1,907 | 9 | (262) | 131 |
| SciBeta HFE Europe Equity 6F EW UCITS ETF | EHEF LN | 207 | 0 | 178 | 131 |
| Lyxor MSCI World Health Care TR UCITS ETF – C-USD | HLTW LN | 219 | 0 | 141 | 130 |
| Xtrackers MSCI World Health Care Index UCITS ETF | XDWH GY | 516 | 0 | 216 | 130 |
| iShares $ TIPS 0-5 UCITS ETF | TP05 LN | 982 | 1 | 570 | 130 |
| Lyxor UCITS ETF EURO CASH | CSH FP | 1,031 | 1 | 395 | 122 |
The top 10 ETPs by net new assets collectively gathered $484 Mn by the end of August 2018.
Top 10 ETPs by net new assets August 2018: Europe
| Name | Ticker | Assets (US$ Mn) Aug-18 | ADV (US$ Mn) Aug-18 | NNA (US$ Mn) YTD 2018 | NNA (US$ Mn) Aug-18 |
| Xtrackers Physical Gold Euro Hedged ETC | XAD1 GY | 1,724 | 1 | 231 | 132 |
| ETFS Nickel | NICK LN | 388 | 0 | 278 | 87 |
| ETFS Physical Gold | PHAU LN | 5,826 | 9 | 90 | 80 |
| ETFS Agriculture DJ-UBSCISM | AIGA LN | 341 | 0 | 109 | 63 |
| Invesco Gold ETC | SGLD LN | 4,063 | 4 | (276) | 63 |
| Boost EURO STOXX 50 3x Short Daily ETP | 3EUS LN | 34 | 0 | 27 | 17 |
| Boost US Large Cap 3x Short Daily ETP | 3USS LN | 29 | 0 | 11 | 11 |
| Xtrackers Physical Gold ETC | XGLD LN | 771 | 2 | 64 | 11 |
| ETFS Coffee | COFF LN | 85 | 0 | 30 | 11 |
| ETFS Energy DJ-UBSCISM | AIGE LN | 123 | 0 | 25 | 9 |
Investors have tended to invest in International market cap and lower cost ETFs in August.
Source: ETFWorld