Assets in the global exchange traded fund (ETF) and exchange traded product (ETP) industry reached a new record high of $2.55trn, according to preliminary data from ETFGI’s May 2014 industry insights report.
The new record was reached as a result of globally-listed ETFs and ETPs gathering $22.4bn in net new assets in May combined with a small positive market performance in the month.
“In May investors invested net new money in almost equal amounts into equity and fixed-income exposures with net new flows going into a broad spectrum of exposures from riskier emerging market equities to safer government-bond products,” said Deborah Fuhr, managing partner at ETFGI.
In May fixed-income ETFs/ETPs gathered the largest net inflows with $11.5bn, followed by equity ETFs/ETPs with $10.3bn, while commodity ETFs/ETPs saw net outflows of $565m.
The ETF/ETP industry in many countries and regions also hit record highs in assets at the end of May. The US market reached $1.8trn, followed by Europe at $459bn, Japan $86.7bn, Canada $63.2bn and the Middle East and Africa where assets hit $41.69bn.
At the end of May the global industry had 5,283 ETFs/ETPs, with 10,293 listings, from 219 providers listed on 59 exchanges.
“The S&P 500 ended May at an all-time high. The S&P 500 is up 5% year-to-date, while the Dow Jones Industrial Average is up only 2%. US stocks have advanced each month in 2014 except for January. During May developed markets gained 2% and emerging markets 4% with Asia showing strong performance, up 4%.” said Fuhr.
Year to date through to the end of May, ETFs/ETPs have had net inflows of $91.2bn, which is less than the $108.2bn of net inflows gathered at the same time last year.
Year to date equity ETFs/ETPs have had the largest net inflows at $47.9bn, followed by fixed-income ETFs/ETPs at $35.9bn, while commodity ETFs/ETPs have had net outflows of $1.7bn.
iShares gathered the largest net ETF/ETP inflows with $9.7bn in April 2014, followed by Vanguard with $6.5bn, and Lyxor ETFs with $1.4bn.