Invested assets in ETFs and ETPs reach all time high
At a global level, assets invested in exchange-traded funds and exchange-traded products reached a new all-time high of over US$1.86 trillion at the end of Q3 2012, an increase of 21.7 per cent from $1.53 trillion.
Looking regionally, assets invested in European listed ETFs and ETPs also reached a new all-time high of over US$349.5bn at the end of Q3 2012 surpassing the prior record of $339.4bn set at the end of February 2012.
The scale of the industry continues to expand – at the end of the third quarter, the European ETF industry had 1,318 ETFs, with 4,822 listings, assets of $309bn, from 40 providers on 22 exchanges.
When we include other exchange-traded products we can see that at the end of Q3 2012, the European ETF/ETP industry had 1,920 products, with 6,057 listings, assets of $349bn, from 46 providers and available on 23 exchanges.
Assets have increased by 5.5 per cent from $331bn in August 2012 to $349bn in September 2012. Year-to-date through end of September 2012, ETF/ETP assets have increased by 16.4 per cent from $300bn to $349bn.
Year-to-date through end of Q3 2012, they saw net inflows of $21bn. Source gathered the largest net inflows in September with $1.186bn, followed by iShares with $1.086bn while ETF Securities had $887m net inflows.Year to date through end of Q3 2012 commodity ETFs/ETPs gathered the largest net inflows with $6.656bn, followed by equity with $6.478bn and fixed income with $5.742bn.
In September 2012, ETFs/ETPs saw net inflows of $4.665bn. Equity ETFs/ETPs gathered the largest net inflows with $2.434bn, followed by commodity ETFs/ETPs with $1.983bn, while the losers were leveraged ETFs/ETPs experiencing net outflows of $102m.
At the end of Q3 2012, of the 1,318 ETFs in Europe, 509 (38 per cent) used physical replication while 802 (61 per cent) were synthetically replicated. In terms of assets, of the $309bn in total assets at the end of Q3 2012, $194bn (62.9 per cent) was held in physical compared to $114bn (37 per cent) in synthetic ETFs.
In September 2012, physical ETFs gathered net inflows of $1.489bn while synthetics gathered net inflows of $916m. Physical ETFs have experienced net inflows of $14.5bn year-to-date compared to net inflows of $1.2bn into synthetics.
In September 2012, two ETFs/ETPs were launched by two providers on two exchanges, while four delisted. Year-to-date through end of Q3 2012, 170 new ETFs/ETPs have been launched by 17 providers on eight exchanges, while 45 delisted.
ETF/ETP average daily trading volumes have increased by 25.7 per cent from $3bn in August 2012 to $4bn in September 2012.
Deborah Fuhr is a partner of ETFGI