Asset Management
Exchange-Traded Funds, Products Continue Attracting Inflows, Despite Volatility
%20(1).jpg)
We take a look at the data on the exchange-traded fund and product sector. This space has benefited hugely from the boom in "passive" products over recent years. Markets have been tough, and equities have fallen hard this year, but October data shows a net inflow to the ETF/ETP industry.
Data shows that investors put in a net sum of $116.12 billion
into exchange-traded funds and products in October even while
global equity markets continued to struggle, suggesting appetite
for these “passive” entities remains relatively robust.
The figures come from ETFGI, a business following the ETF and ETP
sector. Since the start of 2022, investors have put a net sum of
$708.4 billion into the industry. During October, assets invested
in the global ETFs industry increased by 6.2 per cent, from
$8.35 trillion at the end of September to $8.87 trillion at the
end of October.
At the end of October, the global ETFs industry had 10,954
products, with 22,691 listings, from 661 providers listed on 81
exchanges in 63 countriesr.
ETFs are typically open-ended, index-based funds. ETPs, on the
other hand, are similar to ETFs in the way that they trade and
settle but do not use an open-end fund structure.
Exchange-traded funds and products have surged in volume and
variety over the past 20 years, as enthusiasm for low-cost
passive investing helped the sector. ETFs appealed to clients for
giving them the ability to tap into a sector relatively quickly
and easily.
Equity ETFs/exchange-traded products gathered net inflows of
$76.14 billion during October, bringing year-to-date net inflows
to $410.06 billion, lower than the $715.29 billion in net inflows
equity products had attracted at this point in 2021. Fixed income
ETFs/ETPs had net inflows of $34.94 billion during October,
bringing year-to-date net inflows to $182.99 billion, lower than
the $194.61 billion in net inflows fixed income products had
attracted by the end of October 2021.
By contrast, investors who took money from commodities, and
ETFs/ETPs in this area reported net outflows of $5.85 billion
during October, bringing year-to-date net outflows to $13.10
billion, more than the $10.85 billion in net outflows commodities
products had reported year to date in 2021.