Global ETF inflows per month have dropped to $12.38 In February, the lowest amount since May 2016, suggesting that market volatility at the beginning of the year has left its mark on the passive fund industry.
While February marks the 49th consecutive month of net inflows in ETF’s and ETP’s, globally-listed Equity ETFs gathered net inflows for 2018 of $89.08 bn which is less than the $91.35 Bn in net inflows at this point last year,l according to the latest data presented by research and consultancy firm ETFGI.
Moreover, assets invested in passive funds listed globally decreased by 3.50%, or $180.10 bn, during February, to $4.968 trn, ETFGI revealed.
The market continues to be very concentrated, with the top 20 ETFs accounting for the bulk of net new assets. Collectively, they attracted $61.8bn representing almost 70% of all net new inflows this year.
The iShares Core S&P 500 ETF (IVV US) attracted the biggest net new inflows, on its own it accounted for net inflows of $10.94 bn, more than 12% of all inflows in 2018.
The S&P 500, which is tracked by two of the five biggest global ETFs dropped by up to 10% at the beginning of February but gradually recovered throughout the month. Similarly, the MSCI EAFE and the MSCI World Index reported sharp losses at the beginning of the month, their net returns are now about 4% below January levels.