ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in Smart Beta ETFs and ETPs listed globally increased by 32.3% during 2017 to reach a new high of US$658.35 Bn at the end of December. (All dollar values in USD unless otherwise noted.)

Highlights

Assets invested in Smart Beta ETFs/ETPs listed globally increased by a record $ 160.61 billion during the year, to reach a new high of $658.35 billion. Year-to-date, through end of December 2017, Smart Beta ETFs and ETPs listed globally saw net inflows of $71.75 Bn. Assets in market cap ETFs increased by 40.3% in 2017 which is significantly more than the 32.3% increase in Smart Beta assets.

According to ETFGI’s December 2017 Global Smart Beta ETF and ETP industry insights report, an annual paid-for research subscription service, assets invested in Smart Beta ETFs/ETPs listed globally grew by a record US$160.61 Bn during 2017, almost double the previous record of US$87.41 Bn set in 2016. The increase of 32.3%, from US$497.74 Bn at the end of 2016, also represents the greatest growth in assets since 2009 when markets recovered following the 2008 financial crisis.

Top 20 Smart Beta ETFs by net new assets: Global

NameTickerAssets
(US$ Mn)
Dec-17
ADV
(US$ Mn)
Dec-17
NNA
(US$ Mn)
YTD 2017
Vanguard Value ETFVTV US36,532128.65,075
iShares MSCI USA Momentum Factor ETFMTUM US5,42739.63,341
Vanguard Growth ETFVUG US31,40389.72,179
iShares MSCI USA Minimum Volatility ETFUSMV US15,07655.11,539
Vanguard Small-Cap Value ETFVBR US12,63935.51,463
Schwab Fundamental US Large Company Index ETFFNDX US3,7619.51,462
Schwab Fundamental International Large Company Index ETFFNDF US3,4639.91,365
iShares MSCI EAFE Minimum Volatility ETFEFAV US8,36440.01,327
iShares Core Dividend Growth ETFDGRO US2,65313.71,284
iShares MSCI EAFE Value ETFEFV US6,40131.71,278
Schwab US Dividend Equity ETFSCHD US7,13129.41,223
iShares Automation& Robotics UCITS ETFRBTX LN1,48418.01,171
Guggenheim S&P 500 Equal Weight ETFRSP US14,99343.81,115
iShares International Select Dividend ETFIDV US4,88814.81,108
Schwab Fundamental US Small Company Index ETFFNDA US2,6726.91,096
iShares Edge MSCI Europe Value Factor UCITS ETFIEFV LN1,7625.41,040
iShares Edge MSCI USA Value Factor UCITS ETFIUVL LN1,3204.9985
Vanguard Mid-Cap Value ETFVOE US8,34923.0962
First Trust Value Line Dividend Index FundFVD US4,19510.2953
First Trust Nasdaq Bank ETFFTXO US1,2121.9953

 

Similarly, the top 10 ETPs by net new assets collectively gathered US$661.56 Mn year-to-date during 2017.

Top 10 Smart Beta ETPs by net new assets: Global

NameTickerAssets
(US$ Mn)
Dec-17
ADV
(US$ Mn)
Dec-17
NNA
(US$ Mn)
YTD 2017
FI Enhanced Global High Yield ETNFIHD US1,1343.3             357
Psagot Sal Europe WisdomTree Export Oriented (NTR) ILS (40a)PSGT304 IT1130.3            101
TACHLIT S&P AERO & DEFENSETCSP145 IT530.2               44
Barclays ETN+ Shiller CAPE ETNCAPE US950.3               39
Psagot Sal Japan WisdomTree (NTR) ILS (40a)PSGT306 IT2330.4               25
ETRACS Monthly Pay 2xLeveraged U.S. Small Cap High Dividend ETNSMHD US440.5               21
Harel Sal S&P 500 Low VolatilityHRSPL82 IT790.1               20
NEXT NOTES Japan Equity High Beta Select 30 Net Total Return ETN2068 JP230.1               19
NEXT NOTES Japan Equity Low Beta Select 50 Net Total Return ETN2069 JP210.2               19
NEXT NOTES AI Companies 70 Net Total Return ETN2067 JP320.9             18

 

Value Factor ETFs/ETPs listed globally saw net inflows of US$2.63 Bn in December, growing net inflows for 2017 to US$16.66 Bn. Multi Factor ETFs and ETPs gathered net inflows of US$1.41 Bn in December, bringing net inflows for 2017 to US$12.85 Bn.

To conclude, investors have tended to invest in lower cost and Value Factor ETFs in 2017 with the Vanguard Value ETF (VTV US) accumulating net inflows of US$1.40 Bn and a TER of 6bp.

For more information on the latest ETF trends, visit our current affairs category.