Assets in actively managed ETFs, ETPs hit record high in June

By the end of June, actively managed ETFs and exchange-traded products (ETPs) saw net inflows of US$7.04 billion, which bumped year-to-date net inflows up to US$26.69 billion, according to data from London-based research and consultancy firm ETFGI. (All figures are in U.S. dollars.)

That’s “significantly more than the US$16.41 billion gathered at this point in 2019,” a Friday release said, adding that actively managed fixed income products accounted for the lion’s share (67.4%) of overall assets, followed by equity products at 27.1%.

Looking solely at the fixed income portion, actively managed exchange-traded offerings gathered net inflows of $4.82 billion in June, bringing net inflows for the year up to June 30 to $14.38 billion. In comparison, equity products in the active ETF and ETP space attracted net inflows of $1.89 billion for the same period, bringing their year-to-date inflows to $10.35 billion.

In the release, ETFGI’s Deborah Fuhr said, “In Q2, U.S. equities staged a recovery from the Q1’s decline,” despite the fact that Covid-19 cases are still rising south of the border. Meanwhile, developed markets such as Hong Kong, New Zealand, the Netherlands and Germany were top performers in the month of June, alongside emerging markets, she said.

Also for the month of June, and based on ETFGI data, ETFs and ETPs focused on environmental, social, and governance (ESG) enjoyed an increase in net inflows.

The research firm finds that those products saw inflows of $3.49 billion by the end of June. As a result, a release said, “year-to-date net inflows [were] US$32.02 billion, which is significantly more than the US$9.86 billion gathered at this point last year.”

The main driver for growth in the ESG space was European-domiciled funds and products (50.9% of overall ESG assets), the release said, followed by those in the U.S. (40.5%) and then Asia Pacific ex-Japan (5.8%).

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.