ETFs/ETPs on track to break 2019 record inflow year

On the 11/13/20 at 11:07AM


Adrien Paredes-Vanheule

The global ETF/ETP market was only $31.6bn away from the annual inflow record at the end of October 2020 with two months to go, ETFGI reports.

ETFs and ETPs listed globally are closing in on the net inflow record set for the full year 2019 ($571.14bn) as they boarded $539.58bn in net new money over the first ten months of 2020 according to research firm ETFGI. At the end of October 2019, net subscriptions in ETFs and ETPs were only reaching $399.88bn in comparison. 

ETFGI's data suggests that ETFs and ETPs listed globally gathered net inflows of $52.21bn in October. In detail, equity ETFs/ETPs posted $22.59bn in net new cash, followed by fixed income ETFs/ETPs ($21.62bn). In addition, global investors poured $742m in commodity ETFs/ETPs and $7.29bn in active ETFs/ETPs.

“During October, the S&P 500 decreased by 2.66% due to the uncertainty of US elections and rise in virus infections. Developed markets outside the US fell 3.56% during October, 21 of 24 countries lost ground as a large portion of Europe announced new lockdown plans. Emerging markets reported positive a return of 2.04% in October,” said to Deborah Fuhr, managing partner, founder and owner of ETFGI.

The ETF specialist notes that substantial inflows can be attributed to the top 20 ETFs by net new assets, which collectively gathered $28.83bn during October, including the Vanguard Total Stock Market ETF which drew $3.69bn alone. As for ETPs, the WisdomTree Physical Gold - GBP Daily Hedged – Acc recorded $632m in net subscriptions alone.

In total, the global ETF/ETP industry was worth $6.81trn at the end of October 2020.