ETFGI reports assets invested in the global ETF industry extended lead over hedge fund industry to US$1.70 trillion at the end of Q1 2018

1 June 2018

LONDON — June 1, 2018 — ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in the global ETF/ETP industry extended their lead over assets invested in the global hedge fund industry to US$1.70 trillion at the end of Q1 2018, an increase of 4.91% over the gap at the end of Q4 2017. (All dollar values in USD unless otherwise noted.)   Highlights Assets invested in global ETF/ETP industry extend lead over assets in global hedge fund industry to $1.70 Tn at the end of March 2018 Record $4.92 Tn invested in 7,389 ETFs/ETPs listed globally at the end of March 2018 Record $3.22 Tn invested in 8,379 hedge funds globally at the end of March 2018 1.74% growth in assets invested in ETFs/ETPs over Q1 2018 outpaces 0.13% growth in assets in hedge funds over the same period. In contrast, growth over Q1 2017 was 10% and 2%, respectively According to ETFGI’s analysis a record $4.92 Tn were invested in 7,389 ETFs/ETPs listed globally at the of Q1 2018, representing growth in assets of 1.74% over the quarter. Over the same period assets invested in hedge funds globally grew by only 0.13%, to a record $3.22 Tn in 8,379 hedge funds, according to a report by Hedge Fund Research. Assets invested in the global ETF/ETP industry first surpassed those invested in the hedge fund industry at the end of Q2 2015, as ETFGI had forecasted. Growth in assets in the ETF/ETP industry has outpaced growth in the hedge fund industry since the financial crisis in 2008. Growth in global ETF/ETP and global hedge fund assets, as at end of March 2018 In Q1 2018 the performance of the HFRI Fund Weighted Composite Index was 0.14%; higher than the -0.76% return of the S&P 500 Index. This is the first time, in the past seven years, that the performance of the HFRI Fund Weighted Composite Index was higher than the return of the S&P 500 Index. Annual returns of the HFRI Fund Weighted Composite Index and the S&P 500 Index During the first quarter of 2018, ETFs/ETPs listed globally gathered $137 Bn in net inflows, according to ETFGI’s Global ETF and ETP industry insights report. In contrast, HFR reported that net inflows of $1.10 Bn into hedge funds over the same period. March 2018 also marked the 50th consecutive month of net inflows into ETFs/ETPs. Net New Asset (NNA) flows into ETFs/ETPs and hedge funds globally, as at end of March 2018 Sources: Hedge Fund Research HFR, ETFGI The majority of net inflows can be attributed to the top 20 ETFs by net new assets, which have collectively gathered $73.7 Bn year-to-date. The iShares Core MSCI EAFE ETF (IEFA US) on its own accounted for net inflows of $14.6 Bn.  Top 20 ETFs by net new assets: Global Source: ETFGI data sourced from ETF/ETP sponsors, exchanges, regulatory filings, Thomson Reuters/Lipper, Bloomberg, publicly available sources and data generated in-house.   Please contact deborah.fuhr@etfgi.com if you would like to discuss the cost to subscribe to any of ETFGI’s research or consulting services.    ### Attribution Policy The information contained herein is proprietary. The media is welcome to use our information and ideas, provided that the following sourcing is included: ETFGI is a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, based in London, England. Deborah Fuhr, Managing Partner, co-founder, ETFGI website www.etfgi.com.   About ETFGI  ETFGI is an independent research and consultancy firm launched in 2012 by Deborah Fuhr and partners in London offering consulting services and paid for research subscription services. Our service is the only global offering of monthly reports covering each region of the world where ETFs, ETPs are listed, a monthly directory and monthly fact sheets along with a database covering all global products plus you receive insights from us. Visit www.etfgi.com to learn more.   ETFGI SERVICES  ETFGI currently offers the following subscription services: ETFGI Basic Global ETFs and ETPs research service ETFGI Global Institutional Users of ETFs and ETPs Landscape report * ETFGI Global Active ETF ETFs and ETPs Landscape report ETFGI Global Smart Beta Equity ETF ETFs and ETPs Landscape report ETFGI Global Currency Hedged ETFs and ETPs Landscape report * ETFGI Global Leverage and Inverse ETFs and ETPs Landscape report * ETFGI Global EM and FM ETFs and ETPs Landscape report * ETFGI China ETFs and ETPs Landscape report * ETFGI Trends in ETF Adoption by fund platforms in the UK report * Custom reports and analysis ETF TV – create educational videos for investors, advertising and sponsorship opportunities in partnership with Asset TV ETFGI Weekly Newsletter – Premium * ETFGI Weekly Newsletter (free subscription - register at www.etfgi.com) ETFs Global Markets Roundtable events 2018 * ETFGI is supporting Jobs in ETFs, the first website for careers and recruitment in the ETF industry.  Please contact us at deborah.fuhr@etfgi.com if you would like further information on our services.   About Deborah Fuhr  Previously Deborah Fuhr served as global head of ETF research and implementation strategy and as a managing director at BlackRock/Barclays Global Investors from 2008 – 2011. She also worked as a managing director and head of the investment strategy team at Morgan Stanley in London from 1997 – 2008, and as an associate at Greenwich Associates.   She has been working with investors, ETF, ETP providers, index providers, exchanges, MMs and APs, regulators, trade associations, custodians, law firms, accounting firms around the world since 1997. ETFGI is honored to count as our research and consulting clients some of the leading firms in the ETF Ecosystem around the world as well as some new entrants and firms that are considering entering the ETF, ETP industry.   Past awards for Ms Fuhr include she was the recipient of the 100 Women in Finance 2017 European Industry Leadership Award, the 2014 William F. Sharpe Lifetime Achievement Award for outstanding contributions to the field of index investing and she named one of the “100 Most Influential Women in Finance” by Financial News over several years, most recently in 2016.   Deborah Fuhr is a founder and board member of Women in ETFs “WE” a not for profit organization to connect, support and inspire Women and Men in the ETF ecosystem. WE has over 3,600 members in chapters around the world.   Contact: Deborah Fuhr Managing Partner ETFGI Mobile: +44 777 5823 111 Email: deborah.fuhr@etfgi.com Web: www.etfgi.com Twitter: @deborahfuhr LinkedIn: ETF Network LinkedIn: Women In ETFs