Global Exchange Traded Fund (ETF) and Exchange Traded Product (ETP) assets reached an all-time high of US$1.9 trillion at the end of November 2012, according to figures from ETFGI’s monthly global ETF and ETP industry insights.
Assets in ETFs and ETPs reached all-time highs of US$1.3 trillion in the US, US$359 billion in Europe, US$78.7 billion in Asia Pacific (ex-Japan), US$46.9 billion in Japan and US$11.6 billion in Latin America. Year to date through end of November 2012, ETF and ETP assets have increased by 23.8% from US$1.5 trillion to US$1.9 trillion.
Over the past 10 years the global compounded annual growth rate (CAGR) of these products has been 30.2%. There are currently 4,726 ETFs and ETPs, with 9,719 listings, assets of US$1.9 trillion, from 208 providers on 56 exchanges.
With the outcomes of the US elections and super storm Sandy known, and a sense among investors that a solution to the looming fiscal cliff will be negotiated, US$9 billion was invested into ETFs and ETPs providing exposure to US equity indices, reversing nearly all of the outflows during October. Overall, US$ 21.3 billion of net new money went into ETFs and ETPs in the month of November. Looking year to date through end of November 2012, ETFs and ETPs saw net inflows of US$223 billion, US$69 billion above the level of net new assets at this time last year. Equity ETFs and ETPs have gathered the largest net inflows accounting for US$127 billion followed by fixed income ETFs and ETPs with US$61 billion and commodity ETFs and ETPs capturing US$22 billion.
“We are likely to end 2012 with a record level of assets in ETFs and ETPs and with a record level of net new assets invested into the products during the year” according to Deborah Fuhr, Managing Partner at ETFGI.
Equity focused ETFs and ETPs have gathered US$127 billion which is US$36 billion more than all of last year. Products providing exposure to North American equity indices have been the most popular receiving US$62 billion, followed by emerging market equity with US$38 billion and Asia Pacific equity with US$9.6 billion.
Fixed Income ETFs and ETPs have proven to be very popular tools this year with US$61 billion in net new assets, gathering US$16 billion more than all of last year. Corporate bond products have gathered the largest net inflows with US$24.5 billion, followed by high yield with US$14 billion.
Commodity flows at US$22.5 billion are US$5.5 billion above this time last year. Precious metals have gathered the largest net inflows with US$19.8 billion, while agriculture experienced the largest net outflows with US$1.4 billion.