ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, today reported assets invested in smart beta equity ETFs/ETPs listed globally reached a new record of US$607 billion at the end of July 2017,…..
Deborah Fuhr, Managing Partner at ETFGI
according to data from ETFGI’s July 2017 global smart beta equity ETF and ETP industry insights report.
Record levels of assets were reached at the end of July for equity smart beta ETFs/ETPs listed globally with US$607.17 Bn, in the United States US$538.62 Bn, in Europe US$44.84 Bn, in Canada US$14.81 Bn and in Asia Pacific (ex-Japan) US$5.57 Bn.
In July 2017, smart beta equity ETFs/ETPs gathered net inflows of US$6.39 Bn. Combining market moves and net inflows, smart beta equity ETF/ETP assets have increased by 17.8% from US$515.22 Bn to US$607.17 Bn, with a 5-year CAGR of 31.9%.
At the end of July 2017, there were 1,264 smart beta equity ETFs/ETPs, with 2,159 listings, assets of US$607 Bn, from 154 providers on 40 exchanges in 33 countries.
“Most equity markets continued to see gains in July. The S&P 500 gained 2% with Telecom and Info Tech the top performing sectors, up 6% and 4%, respectively. International equities, and especially emerging markets, were up 3% and 6%, respectively. Political risks remain a focus for investors – the ability of the Trump administration to move forward on policy goals and hearings on Capitol Hill, Brexit negotiations, and North Korea is still an area of concern.” According to Deborah Fuhr, managing partner at ETFGI.
89% of smart beta assets are invested in 621 ETFs/ETPs that are domiciled and listed in the United States and 76% of the assets are invested in 499 ETFs/ETPs that provide Smart Beta exposure to the US market.
iShares gathered the largest ‘smart beta’ ETF/ETP net inflows in July with US$1.53 Bn, followed by Vanguard with US$1.52 Bn and PowerShares with US$0.70 Bn net inflows.
Products tracking S&P Dow Jones ‘smart beta’ indices gathered the largest net ETF/ETP inflows in July with US$2.40 Bn, followed by CRSP with US$1.26 Bn and FTSE Russell with US$0.54 Bn net inflows.