ETFGI reports ETFs and ETPs listed in the US gather net inflows of US$6.40 Bn during October 2018
Q3 hedge fund letters, conference, scoops etc
LONDON — November 20, 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 US gathered net inflows of US$6.40 Bn during October. Following a turbulent month for financial markets, total assets invested in the US ETF and ETP industry fell 6.24% during October, from US$3.73 Tn at the end of September, to US$3.50 Tn, according to ETFGI’s October 2018 US 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 in ETFs and ETPs listed in the US decline 6.24% to $3.50 Tn in October.
- Net new assets gathered by ETFs/ETPs listed in the US were $6.40 Bn in October.
- Equity-based products saw the largest inflows, while fixed income-based products saw the greatest outflows during October.
“Few markets managed to avoid the October sell off, as investors grew jittery at the prospects of further rate hikes from the US treasury and any hope of resolutions to trade disputes appeared to be diminishing, be it in Europe or the US. Developed and developing markets saw similar declines during the month. Aside from the US, where strong year-to-date performance cushioned the fall, October pushed many indices deeper into negative territory for the year. The S&P 500 fell 6.84% over the month, retaining a 3.1% gain year-to-date, while European markets fell 7.82%, bringing year-to-date decline to 9.56%. EM markets down 7.60% and Frontier markets down 3.36%, bringing year to date declines to 15.07% and 10.68%, respectively.” according to Deborah Fuhr, managing partner and a founder of ETFGI.
At the end of October 2018, the US ETF/ETP industry had 2,012 ETFs/ETPs, assets of $3.50 Tn, from 145 providers listed on 3 exchanges. Following net inflows of $6.40 Bn and market moves during the month, assets invested in ETFs/ETPs listed in the US decreased by 6.24%, from $3.73 Tn at the end of September 2018, to $3.50 Tn.
Growth in US ETF and ETP assets as of the end of October 2018
Equity ETFs/ETPs listed in the US attracted net inflows of $6.05 Bn in October, growing net inflows for 2018 to $144 Bn, less than the $263 Bn in net inflows at this point last year. Fixed Income ETFs and ETPs listed in the US saw net outflows of $4.84 Bn in October, bringing net inflows for 2018 to $51 Bn, considerably less than the $103 Bn in net inflows at this point last year.
October saw the average daily trading volume (ADV) rise to $150 Bn, the highest for US listed ETFs/ETPs since ETFGI’s records began in 2011. October’s ADV figure is 25% higher from the previous record of $120 Bn seen in February 2018.
Substantial inflows during October can be attributed to the top 20 ETFs by net new assets, which collectively gathered $25.6 Bn. The iShares Core S&P 500 ETF (IVV US) gathered $4.64 Bn, the largest net inflow in October.
Top 20 ETFs by net new assets October 2018: US
| Name | Ticker | Assets (US$ Mn) Oct-18 |
ADV (US$ Mn) Oct-18 |
NNA (US$ Mn) YTD 2018 |
NNA (US$ Mn) Oct-18 |
| iShares Core S&P 500 ETF | IVV US | 156,359 | 1,703 | 15,205 | 4,643 |
| Vanguard S&P 500 ETF | VOO US | 99,362 | 1,124 | 14,506 | 2,071 |
| Communication Services Select Sector SPDR Fund | XLC US | 3,707 | 258 | 3,879 | 1,848 |
| SPDR Bloomberg Barclays 1-3 Month T-Bill ETF | BIL US | 5,320 | 214 | 3,367 | 1,776 |
| iShares Core MSCI Total International Stock ETF | IXUS US | 11,782 | 112 | 4,851 | 1,762 |
| iShares MSCI Japan ETF | EWJ US | 16,746 | 878 | (536) | 1,721 |
| iShares 1-3 Year Treasury Bond ETF | SHY US | 15,098 | 275 | 3,889 | 1,345 |
| ProShares UltraPro QQQ | TQQQ US | 4,184 | 1,251 | 1,414 | 1,295 |
| JPMorgan Ultra-Short Income ETF | JPST US | 3,361 | 73 | 3,252 | 928 |
| iShares Short Treasury Bond ETF | SHV US | 15,635 | 195 | 7,599 | 916 |
| iShares Russell 1000 Value ETF | IWD US | 36,585 | 393 | (3,481) | 896 |
| Vanguard FTSE Developed Markets ETF | VEA US | 65,974 | 698 | 6,343 | 849 |
| Vanguard Total Stock Market ETF | VTI US | 98,508 | 703 | 6,822 | 848 |
| iShares MSCI USA Minimum Volatility ETF | USMV US | 17,037 | 230 | 1,437 | 787 |
| iShares Edge MSCI USA Quality Factor ETF | QUAL US | 6,937 | 99 | 2,618 | 706 |
| Goldman Sachs TreasuryAccess 0-1 Year ETF | GBIL US | 2,619 | 43 | 1,766 | 695 |
| JPMorgan BetaBuilders Canada ETF | BBCA US | 2,045 | 33 | 2,174 | 664 |
| iShares J.P. Morgan USD Emerging Markets Bond ETF | EMB US | 14,744 | 423 | 3,831 | 646 |
| Vanguard Value ETF | VTV US | 42,547 | 285 | 6,469 | 621 |
| iShares MSCI ACWI ETF | ACWI US | 8,883 | 360 | 523 | 616 |
Similarly, the top 10 ETPs by net new assets collectively gathered $1.18 Bn by the end of October 2018.
Top 10 ETPs by net new assets October 2018: US
| Name | Ticker | Assets (US$ Mn) Oct-18 |
ADV (US$ Mn) Oct-18 |
NNA (US$ Mn) YTD 2018 |
NNA (US$ Mn) Oct-18 |
| SPDR Gold Shares | GLD US | 28,570 | 1,248 | (3,181) | 475 |
| iShares Gold Trust | IAU US | 10,645 | 195 | 1,284 | 198 |
| VelocityShares 3x Long Crude Oil ETN | UWT US | 215 | 111 | (21) | 107 |
| Large Cap Growth Index-Linked ETN due 2028 | FRLG US | 378 | 5 | 415 | 85 |
| VelocityShares Daily 3x Inverse Natural Gas ETN | DGAZ US | 451 | 198 | 382 | 75 |
| Invesco DB Commodity Index Tracking Fund | DBC US | 2,523 | 42 | 227 | 69 |
| FI Enhanced Global High Yield ETN | FIHD US | 1,428 | 5 | 423 | 46 |
| United States Oil Fund LP | USO US | 1,609 | 403 | (716) | 45 |
| SPDR Gold MiniShares Trust | GLDM US | 272 | 4 | 248 | 38 |
| VelocityShares Daily 3x Long Natural Gas ETN | UGAZ US | 427 | 107 | (784) | 37 |
Investors have tended to invest in core, market cap and lower cost ETFs in October.
Please contact deborah.fuhr@etfgi.com if you would like to discuss the cost to subscribe to any of ETFGI’s research or consulting services.
