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ETFs extend their asset lead over hedge funds says ETFGI


ETF data provider ETFGI reported today that assets invested in the global ETF/ETP industry extended their lead over assets invested in the global hedge fund industry to USD1.70 trillion at the end of Q1 2018, an increase of 4.91 per cent over the gap at the end of Q4 2017. 

The firm reports there was a record USD4.92 trillion invested in 7,389 ETFs/ETPs listed globally at the end of March 201, against a record USD3.22 trillion invested in 8,379 hedge funds globally at the end of March 2018.
 
The firm says that 1.74 per cent growth in assets invested in ETFs/ETPs over Q1 2018 outpaces 0.13 per cent growth in assets in hedge funds over the same period. Meanwhile, in contrast, growth over Q1 2017 was 10 per cent and 2 per cent, respectively
 
According to ETFGI’s analysis a record USD4.92 trillion were invested in 7,389 ETFs/ETPs listed globally at the of Q1 2018, representing growth in assets of 1.74 per cent over the quarter. Over the same period assets invested in hedge funds globally grew by only 0.13 per cent, to a record USD3.22 trillion in 8,379 hedge funds, according to a report by Hedge Fund Research.
 
Assets invested in the global ETF/ETP industry first surpassed those invested in the hedge fund industry at the end of Q2 2015. Growth in assets in the ETF/ETP industry has outpaced growth in the hedge fund industry since the financial crisis in 2008.
 
In Q1 2018 the performance of the HFRI Fund Weighted Composite Index was 0.14 per cent; higher than the -0.76 per cent return of the S&P 500 Index. This is the first time, in the past seven years, that the performance of the HFRI Fund Weighted Composite Index was higher than the return of the S&P 500 Index. 
 
During the first quarter of 2018, ETFs/ETPs listed globally gathered USD137 billion in net inflows, according to ETFG. The firm writes that in contrast, HFR reported net inflows of USD1.10 billion into hedge funds over the same period. March 2018 also marked the 50th consecutive month of net inflows into ETFs/ETPs.
The majority of net inflows can be attributed to the top 20 ETFs by net new assets, which have collectively gathered USD73.7 billion year-to-date. The iShares Core MSCI EAFE ETF (IEFA US) on its own accounted for net inflows of USD14.6 billion.
 

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