In Focus: Passive Investing  

New record inflows into ETPs amid global uncertainty

New record inflows into ETPs amid global uncertainty
 Photo: Julia Cameron via Pexels

Investors continued to pour money into actively exchange-traded products over October, data from consultancy ETFGI has revealed.

Amid resilient markets globally, actively managed exchange-traded funds and ETPs gathered net inflows of $10.36bn (£7.75bn) over the month. This marked a 5.4 per cent increase on September's high flows, which ETFGI had called "record flows" at the time. 

This means the ETP/ETF market globally has seen $120.28bn (£89.99bn) of new money flow into the investment products over the course of the year, suggesting investors are keen to invest in ETPs that are not pure 'trackers' or passive funds. 

According to ETFGI's monthly report, October 2021 marked the 19th month of consecutive inflows, much of which saw its way towards emerging markets such as Peru and Egypt.

But more recent entrants also gained interest among investors, such as the ProShares Bitcoin Strategy ETF, which launched in October in the US. This new ETF saw inflows of more than $1.2bn (£890m) within the space of a few weeks. 

Deborah Fuhr, managing partner, founder and owner of ETFGI, commented: “Investors have tended to invest in Equity actively managed ETFs/ETPs during October", with the lion's share of new assets under management going towards the 20 actively-managed ETPs outlined in the table (below).

At the end of October 2021, the Global Active ETF/ETP industry had 1,338 ETFs/ETPs, with 1,646 listings, assets of $439 Bn, from 258 providers listed on 29 exchanges in 22 countries.

Top 20 actively managed ETFs/ETPs by net new assets October 2021

Name

Ticker

Assets(US$ Mn)Oct-21

NNA(US$ Mn) YTD-21

NNA(US$ Mn)Oct-21

Nuveen Growth Opportunities ETF

NUGO US

1,687.38

1,650.03

1,645.20

ProShares Bitcoin Strategy ETF

BITO US

1,200.91

1,242.98

1,242.98

JPMorgan Equity Premium Income ETF

JEPI US

4,537.30

4,216.98

561.10

Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF

PDBC US

6,885.73

2,409.55

549.08

Hwabao WP Cash Tianyi Listed Money Market Fund

511990 CH

28,190.56

9,987.31

464.88

Quadratic Interest Rate Volatility and Inflation ETF

IVOL US

3,614.11

2,767.82

296.14

SPDR Blackstone/GSO Senior Loan ETF

SRLN US

7,976.07

5,726.92

261.76

Avantis U.S. Small Cap Value ETF

AVUV US

1,946.80

1,106.95

250.19

First Trust Senior Loan ETF

FTSL US

2,865.60

1,540.53

169.79

Dimensional US Core Equity 2 ETF

DFAC US

14,458.10

526.36

150.62

Horizon Kinetics Inflation Beneficiaries ETF

INFL US

887.13

824.64

148.77

First Trust Global Tactical Commodity Strategy Fund

FTGC US

2,094.73

1,593.31

141.97

Victoryshares ESG Core Plus Bond ETF

UBND US

125.25

125.44

125.44

Manulife Smart Short-Term Bond ETF

TERM CN

564.20

566.25

111.41

Dimensional International Core Equity Market ETF

DFAI US

767.45

632.80

105.94

Dimensional US Targeted Value ETF

DFAT US

6,449.33

343.98

104.91

Vanguard Ultra Short-Term Bond ETF

VUSB US

1,848.24

1,850.18

102.60

Victoryshares ESG Corporate Bond ETF

UCRD US

100.97

101.08

101.08

First Trust Preferred Securities and Income Fund

FPE US

7,697.90

1,723.95

99.24

WisdomTree US Efficient Core Fund

NTSX US

796.53

301.37

93.20

simoney.kyriakou@ft.com