ETFGI: Global ETF flows in June hit record high

Jul 13th, 2016 | By | Category: Equities

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Assets in exchange-traded funds and exchange-traded products globally hit a new record last month. Investor money in ETFs/ETPs hit $3.177tn at the end of June, according to independent research consultancy firm ETFGI.

ETFs increasingly used for passive fixed income exposure, finds Cerulli Associates

June ETF/ETP flows hit a record high driven by fixed income and commodities

Despite the impact of the EU Referendum on markets around the globe, June marked the 29th consecutive month of net inflows at $31.38bn. Record assets were seen in ETFs/ETPs listed in the United States of $2.256tn, Japan with $147.67bn and in Canada with $79.14bn.

The global ETF/ETP market has seen a spate of record flows recently with May being the most recent month to see a high.

In June equity ETFs/ETPs gathered the largest net inflows with $11.72bn, followed by fixed income ETFs/ETPs with $10.80bn, and commodity ETFs/ETPs with $6.63bn. Average daily trading volumes increased by 20.9% from $81.31bn in May 2016 to $98.33bn in June 2016.

However, assets in the first half of this year were driven by fixed income and commodity ETF/ETPs, gathering $67.63bn and $26.53bn, respectively. Equity ETF/ETPs only saw $15.15bn flow in during this time. Despite the record flows in fixed income and commodities, net inflows globally were only $122.71bn in the first six months of the year, which is significantly below the $152.66bn gathered over the same time period last year.

Deborah Fuhr, managing partner at ETFGI, said: “Markets and investors around the world were engulfed in the chaos following what many saw as the unexpected result of the UK’s June 23rd vote. Volatility was up significantly during the month. The S+P 500 index was up just 0.3%. Emerging markets were up 3.94% while developed markets ex-US declined 2.87%. There is still uncertainty in the markets due to questions on when and how Brexit changes will be implement and the many changes happening in UK political parties.”

iShares gathered the largest inflows in June with $13.43bn, it was followed by Vanguard with $10.02bn and Nomura AM at $2.10bn. YTD, Vanguard has gathered the largest net ETF/ETP inflows with $42.28bn, followed by iShares with $40.51bn and Nomura AM with $7.39bn.

The global ETF/ETP industry now has 6,424 ETFs/ETPs, with 12,268 listings, assets of $3.177tn, from 284 providers listed on 65 exchanges in 53 countries.

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