Markets

Assets Invested In ETFs/ETPs In Asia Pacific (ex-Japan) Reached High Of $186 Billion In August

LONDONOctober 5, 2018 — ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that assets invested in ETFs and ETPs listed in Asia Pacific (ex-Japan) reached a new high of US$186 billion, following net inflows of US$2.93 billion and market moves during August. Inflows during the month were primarily driven by products providing exposure to China, according to ETFGI’s August 2018 Asia Pacific (ex-Japan) ETF and ETP industry landscape insights report, an annual paid-for research subscription service.  (All dollar values in USD unless otherwise noted.)

Highlights

  • Total Assets in ETFs and ETPs listed in Asia Pacific (ex-Japan) reached a record $186 Bn in August.
  • Net new assets gathered by ETFs/ETPs listed in Asia Pacific (ex-Japan) were $2.93 Bn in August.
  • Fixed income ETFs/ETPs gathered the largest net inflows during August, while Leveraged ETFs/ETPs saw the largest net outflows.

“On August 22, 2018 the S&P 500 marked its longest bull market - 3,453 days, without a bear market - a 20% drop from the index’s 52-week high. August was a strong month for U.S. equities with economic strength and strong corporate earnings pushing the S&P 500 to reach record highs and gain 3.26% during the month and up 9.94% year to date. Most non-US markets suffered declines during August due to investors’ concerns over trade tensions, Brexit, currency crises and a fear of contagion. Developed markets ex US declined 1.44% in August while up 0.46% YTD, EM markets were down 3.51% and are down 0.81% YTD and Frontier markets were down 4.50% and are down 1.66% YTD.” according to Deborah Fuhr, managing partner and a founder of ETFGI.

At the end of August 2018, the Asia Pacific (ex-Japan) ETF/ETP industry had 1,294 ETFs/ETPs, with 1,450 listings, assets of $186 Bn, from 132 providers listed on 17 exchanges. Following net inflows of $2.93 and market moves during the month, assets invested in ETFs/ETPs listed in Asia Pacific (ex-Japan) increased by 3.78%, from $179 Bn in July 2018 to $186 Bn.

Growth in Asia Pacific (ex-Japan) ETF and ETP assets as of the end of August 2018

 Fixed Income ETFs and ETPs listed in Asia Pacific (ex-Japan) gathered net inflows of $1.55 Bn in August, growing net inflows for 2018 to $6.14 Bn which is greater than the $1.33 Bn in net inflows at this point last year. Equity ETFs/ETPs listed in Asia Pacific (ex-Japan) gathered net inflows of $1.34 Bn in August, bringing net inflows for 2018 to $15.7 Bn, greater than the $2.61 Bn in net outflows at this point last year.

August marked the 9th consecutive month of net inflows into ETFs/ETPs listed in Asia Pacific (ex-Japan), the longest period of consecutive inflows since January 2013, which lasted 10 months.

Substantial inflows during August can be attributed to the top 20 ETFs/ETPs by net new assets, which collectively gathered $3.70 Bn. The CCB Cash TianYi Traded Money Mrkt Fund (511660 CH) gathered $577 Bn, the largest net inflows during August.

Top 20 ETFs/ETPs by net new assets August 2018: Asia Pacific (ex-Japan)

Name Ticker Region Assets(US$ Mn) Aug-18 ADV(US$ Mn)Aug-18 NNA(US$ Mn)YTD 2018 NNA(US$ Mn)Aug-18
CCB Cash TianYi Traded Money Mrkt Fund 511660 CH China 4,164 195 1,684 577
E Fund ChiNext Price Index ETF 159915 CH China 2,297 164 1,970 450
China CSI 500 ETF 510500 CH China 4,169 89 2,244 354
Xtrackers MSCI USA Index UCITS ETF - 1C XMUS SP Singapore 2 0 466 276
China Merchants Caifubao Traded Money Mrkt 511850 CH China 762 34 508 268
Huaan ChiNext 50 ETF Fund 159949 CH China 1,092 76 1,316 207
Bosera Gold Open-End ETF 159937 CH China 1,222 9 1,155 191
Xtrackers S&P 500 UCITS ETF - 1C K6K SP Singapore 5 0 366 159
iShares FTSE A50 China Index ETF 2823 HK Hong Kong 2,825 59 (737) 149
Huatai-Pinebridge CSI 300 ETF 510300 CH China 3,609 108 1,166 146
Fubon US T-Bill ETF Umbrella Fund 20+ Years 00696B TT Taiwan 342 0 318 132
China Southern Cash Management Money Mrkt 511810 CH China 1,674 133 484 127
Harvest CSI 300 Index ETF 159919 CH China 2,571 7 245 100
Capital BofA ML 15+ Year US Tech & Electr Index 00723B TT Taiwan 639 0 555 96
YUANTA/P-shares Taiwan Top 50 1X Bear ETF 00632R TT Taiwan 1,905 20 (313) 90
KB KBSTAR KTB 3Y Futures Inverse ETF 282000 KS South Korea 524 4 440 90
BetaShares Australia 200 ETF A200 AU Australia 131 5 118 78
Capital BofA Merrill Lynch 15+ Year US Banking 00724B TT Taiwan 751 0 628 77
ChinaAMC China 50 ETF 510050 CH China 5,202 223 133 67
Fubon China Policy Bank Bond ETF 00718B TT Taiwan 628 0 383 67

Investors have tended to invest in core, market cap and lower cost ETFs in August.

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. ETFGI is a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, based in London, England. Deborah Fuhr, Managing Partner, co-founder, ETFGI website www.etfgi.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Deborah Fuhr

Deborah Fuhr, partner and co-founder of ETFGI, an independent research and consulting firm providing services to investors and the ETF industry. Prior roles Global Head of ETF Research and Implementation Strategy and a Managing Director at BlackRock/BGI for 3 years and Managing Director and head of the Investment Strategies Group for 11 years.

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