Global ETFs, ETPs draw 2nd-highest net inflow in December

Exchange-traded funds (ETFs) and exchange-traded products (ETPs) attracted the second-highest net inflow on record globally, taking in US$76.24 billion (S$103 billion) last month despite turmoil in developed markets, independent research and consultancy firm ETFGI said yesterday.

Last month's inflow was beaten by January last year, which saw inflows of US$105.7 billion. For last year, global ETFs and ETPs saw inflows of US$516 billion, 26.7 per cent less than the US$654 billion in 2017.

According to the consultancy's December 2018 Global ETF and ETP industry landscape insights report, assets invested in global ETFs and ETPs fell 5.28 per cent to US$4.79 trillion at the end of last month from US$5.06 trillion at the end of November.

While the record US$5.26 trillion for assets invested in ETFs and ETPs in September last year marked an 8.6 per cent increase over 2017, assets invested in the global industry ended down 0.6 per cent for last year.

The consultancy said that substantial inflows during December could be attributed to the top 20 ETFs (by net new assets), which collectively gathered US$40.79 billion. The iShares 1-3 Year Treasury Bond ETF (SHY US) attracted US$3.36 billion, the largest net inflow last month.

At the end of last month, the global ETF/ETP industry had 7,657 ETFs/ETPs, with 14,993 listings, assets of US$4.79 trillion from 401 providers listed on 71 exchanges in 57 countries.

A version of this article appeared in the print edition of The Straits Times on January 11, 2019, with the headline 'Global ETFs, ETPs draw 2nd-highest net inflow in December'. Print Edition | Subscribe