Global ETF Assets Cross $13T as Flows, Markets Rise: ETFGI
Global ETF assets jumped 19% in June to $13.1 trillion as markets worldwide gained and flows into funds continued unabated after more than five years, U.K. researcher ETFGI said.
Exchange-traded funds globally pulled in a net $136.2 billion last month, pushing year-to-date net inflows to a record $730.4 billion, London-based ETFGI said in a statement. Year-to-date, assets have jumped 13% and are on track for a record year, the firm wrote.
ETF issuers are benefitting from rising markets around the world. The S&P 500, as measured by the SPDR S&P 500 Trust ETF (SPY), has added 20% so far this year as recession fears fade and investors pile back into stocks. At the same time, issuers are adding funds at a rapid clip to cater to investors’ diversifying tastes.
“There are a number of significant tailwinds pushing the ETF industry,” ETFGI founder Deborah Fuhr wrote in an email, citing market moves and net inflows, which have continued 61 months straight–more than five years–she said. Fuhr is a member of the etf.com editorial advisory board. ETFGI said.
ETFs' Global Spread
In the U.S. alone, total assets in the country’s 3,602 funds have jumped to $9.52 trillion. Morningstar says $568 billion went into U.S. ETFs last year. BlackRock Inc., whose iShares unit is the world’s biggest ETF issuer, said this week that its exchange-traded funds now hold $4 trillion globally, which would be nearly one-third of the total that ETFGI reported.
ETFs are available on 81 exchanges and 63 countries, ETFGI said.
Some countries’ exchanges are hosting more ETFs to boost trading activity due to fewer initial public offerings, Fuhr wrote. “There are other countries where investors are using ETFs and due to the lower number of IPOs are looking to grow."
“There’s an array of ETFs available to stimulate both as investment products but also as a tool that can be traded on their exchanges,” Fuhr wrote.