Active ETFs gather second largest monthly net inflows ever

Feb 23rd, 2018 | By | Category: Equities

Actively managed ETFs and ETPs (hereafter ETFs) listed globally gathered $3.1 billion in net inflows during January 2018, the second largest monthly net inflow ever, according to ETF industry consultants ETFGI.

Active ETFs gather second largest monthly net inflows ever in January

Net inflows of $3.1bn were the second largest monthly net inflows for actively managed ETFs ever recorded.

The strong net inflows – the thirty-seventh consecutive month of net inflows into actively managed ETFs – has only ever been surpassed in May 2017 when actively managed ETFs globally accumulated $3.3bn.

Assets invested in actively managed ETFs reached a new record high of $79.3bn at the end of January 2018, surpassing the previous record of $75.2bn at the end of 2017.

According to ETFGI’s data, the increase of $4.1bn represents the greatest absolute monthly increase in assets on record. The previous record was set in June 2017, when assets grew by $3.2bn.

The majority of January’s growth in assets is attributable to actively managed ETFs listed in the US, where assets increased by $2.7bn over the month. In terms of asset class, assets invested in actively managed fixed income ETFs and equity ETFs globally increased by $1.7bn each.

Fixed income ETFs gathered the largest net inflows during January with $1.5bn, followed by equity ETFs with $1.2bn and commodity ETFs with $260 million. Actively managed currency ETFs experienced net outflows of $19m.

Source: ETFGI.

Almost 75% of the global net inflows for January can be attributed to the top 20 actively managed ETFs by net new assets, which collectively gathered $2.3bn during the month. The PIMCO US Dollar Short Maturity ETF (MINT LN) led the way with net inflows of $439m.

MINT aims to generate greater income and total returns compared to money market funds, and may be appropriate for non-immediate cash allocations. It primarily invests in short duration investment grade debt securities, seeking to constrain average portfolio duration to less than one year. MINT has $3.0bn in assets under management and a total expense ratio of 0.35%.

Source: ETFGI.

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