Exchange-traded funds (ETFs) are getting closer to another trillion-dollar milestone as their assets continue to grow.
ETFGI, which produces analysis of the ETF and wider exchange-traded products (ETP) market, said these products had $4.92 trillion (€4.21 trillion) invested in them globally at the end of the first quarter (Q1).
Deborah Fuhr, founder of ETFGI, pointed out that ETF/ETPs had extended their lead over hedge funds in terms of assets under management. Hedge funds had $3.22 trillion invested in them, she said using Hedge Fund Research figures, meaning $1.7 trillion separated the ETF/ETP market from hedge funds at the end of Q1.
Q1 saw a 1.74% growth in assets invested in ETFs/ETPs compared to 0.13% growth in hedge fund assets.
During the quarter, ETFs/ETPs listed globally gathered $137billion in net inflows, according to ETFGI’s ‘Global ETF and ETP industry insights’ report. In contrast, hedge fund net inflows were $1.1 billion.
Growth in assets in the ETF/ETP industry has outpaced growth in the hedge fund industry since the financial crisis in 2008, ETFGI said.
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