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.)
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
|Vanguard Value ETF||VTV US||36,532||128.6||5,075|
|iShares MSCI USA Momentum Factor ETF||MTUM US||5,427||39.6||3,341|
|Vanguard Growth ETF||VUG US||31,403||89.7||2,179|
|iShares MSCI USA Minimum Volatility ETF||USMV US||15,076||55.1||1,539|
|Vanguard Small-Cap Value ETF||VBR US||12,639||35.5||1,463|
|Schwab Fundamental US Large Company Index ETF||FNDX US||3,761||9.5||1,462|
|Schwab Fundamental International Large Company Index ETF||FNDF US||3,463||9.9||1,365|
|iShares MSCI EAFE Minimum Volatility ETF||EFAV US||8,364||40.0||1,327|
|iShares Core Dividend Growth ETF||DGRO US||2,653||13.7||1,284|
|iShares MSCI EAFE Value ETF||EFV US||6,401||31.7||1,278|
|Schwab US Dividend Equity ETF||SCHD US||7,131||29.4||1,223|
|iShares Automation& Robotics UCITS ETF||RBTX LN||1,484||18.0||1,171|
|Guggenheim S&P 500 Equal Weight ETF||RSP US||14,993||43.8||1,115|
|iShares International Select Dividend ETF||IDV US||4,888||14.8||1,108|
|Schwab Fundamental US Small Company Index ETF||FNDA US||2,672||6.9||1,096|
|iShares Edge MSCI Europe Value Factor UCITS ETF||IEFV LN||1,762||5.4||1,040|
|iShares Edge MSCI USA Value Factor UCITS ETF||IUVL LN||1,320||4.9||985|
|Vanguard Mid-Cap Value ETF||VOE US||8,349||23.0||962|
|First Trust Value Line Dividend Index Fund||FVD US||4,195||10.2||953|
|First Trust Nasdaq Bank ETF||FTXO US||1,212||1.9||953|
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
|FI Enhanced Global High Yield ETN||FIHD US||1,134||3.3||357|
|Psagot Sal Europe WisdomTree Export Oriented (NTR) ILS (40a)||PSGT304 IT||113||0.3||101|
|TACHLIT S&P AERO & DEFENSE||TCSP145 IT||53||0.2||44|
|Barclays ETN+ Shiller CAPE ETN||CAPE US||95||0.3||39|
|Psagot Sal Japan WisdomTree (NTR) ILS (40a)||PSGT306 IT||233||0.4||25|
|ETRACS Monthly Pay 2xLeveraged U.S. Small Cap High Dividend ETN||SMHD US||44||0.5||21|
|Harel Sal S&P 500 Low Volatility||HRSPL82 IT||79||0.1||20|
|NEXT NOTES Japan Equity High Beta Select 30 Net Total Return ETN||2068 JP||23||0.1||19|
|NEXT NOTES Japan Equity Low Beta Select 50 Net Total Return ETN||2069 JP||21||0.2||19|
|NEXT NOTES AI Companies 70 Net Total Return ETN||2067 JP||32||0.9||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.
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