Global ETFs to hit $50 trn in 2 years
It’s been a very active week for reports and predictions with BBH, PWC and State Street all coming out with very interesting reports and all worth reading in their own right, so check them out if you get a chance.
Everyone loves predictions and they make for great headlines.
JP Morgan recently predicted ETFs in the US will double within the next five years, reaching $15trn, BBH thinks global ETFs will hit $30trn in a decade, PWC reckons global ETFs will hit $15trn by 2027 and on and on it goes.
The truth is none of us have a clue really, hence our headline is a big tongue in cheek.
What is abundantly clear though is that ETFs are on a tear and the naysayers out there (especially in Europe), will for sure be proved wrong in the long term.
Fund Launches and Updates
EMEA
CoinShares introduces Two Zero management fee Index ETPs. ThePhysical Top 10 Crypto Market ETP (Ticker: CTEN) and CoinShares Physical Smart Contract Platform ETP (Ticker: CSSC) both list on Xetra. mondovisione
ETC Group is set to launch the first crypto exchange-traded product (ETP) that tracks an MSCI index. The ETC Group MSCI Digital Assets Select 20 ETP will list on the Xetra in April. etfstream
Fineqia receives approval to launch crypto and NFT ETNs in Europe with Liechtenstein chosen as the domicile. fineqia
DWS has closed its European credit default swap (CDS) ETF despite gathering over €75m assets under management (AUM).
The Xtrackers iTraxx Crossover Short Daily Swap UCITS ETF (XTC5) will delist from the Deutsche Boerse, Six Swiss Exchange and Borsa Italiana. etfstream
HANetf is set to close its online retail ETF in partnership with EQM Indexes after two years due to low asset gathering. The Global Online Retail UCITS ETF (IBUY) will cease trading at the end of April. etfstream
Global X ETFs has announced the launch of four China-related funds on London Stock Exchange:
The Global X China Electric Vehicle and Battery UCITS ETF (CAUT), the Global X China Clean Energy UCITS ETF (CCLN), the Global X China Cloud Computing UCITS ETF (CCLD), and the Global X China Biotech UCITS ETF (CBI0). All come with a TER OF 0.68%. etfstrategy
AMERICAS
Simplify has launched the No K-1 Actively Managed Commodity Strategy ETF (HARD). The fund is designed to be a long-only commodity replacement, while still providing the enhancements of a systematic long/short managed futures strategy. businesswire
F/m investments launches 5 more single security treasury ETFs.
The US Treasury 30 Year Bond ETF (UTHY), US Treasury 20 Year Bond ETF (UTWY), US Treasury 7 Year Note ETF (USVN), US Treasury 5 Year Note ETF (UFIV) and US Treasury 3 Year Note ETF (UTRE) all have an expense ratio of 0.15% and lists on Nasdaq. etfexpress
ASIA-PACIFIC
Bank of China (Hong Kong) has launched an ETF providing climate-tailored exposure to Chinese companies from the Guangdong–Hong Kong–Macao Greater Bay Area.
The BOCHK Greater Bay Area Climate Transition ETF has been listed on the Stock Exchange of Hong Kong (Ticker: 3129 HK). ignitesasia
ChatGPT craze drives soaring returns for Chinese robotics ETFs.
The ChinaAMC CSI Robot ETF has grown assets by over 62% since the start of the year, the Tianhong CSI Robot ETF has increased assets by 12%, whilst the Yinhua CSI Robot ETF has added around 9%. ignitesasia
Young, influencer-driven Taiwanese investors drive ETF assets to record highs.
The percentage of investors between the ages of 25 and 34 investing in ETFs grew from 10% in 2018 to 50% in 2022.
ETFs are now the largest fund type in Taiwan, accounting for 39.8% of all onshore domestic public fund. ignitesasia
CLICK to listen stories from inspiring
If you have yet to listen to the podcast, then we urge you to do so.
It’s focused on the industry leaders within the world of ETFs, hearing how they started off their career and developed it to where it is today.
The idea is really twofold, one being to understand these people at a more human level and get to hear their personal story and the other is to hopefully act as an inspiration for anyone listening.
Flows
The world’s largest ESG exchange traded fund has experienced the largest outflow during March.
The iShares ESG Aware MSCI USA ETF (NASDAQ:ESGU), with $13.82B assets under management has seen $5.25b head for the door in March. seeking alpha
ETFGI reports ETFs industry in the Asia Pacific ex Japan gathered $559 million in net inflows during February:
- YTD net inflows of $1.99 Bn are the eighth highest on record, while the highest recorded
- YTD net inflows are $31.38 Bn for 2022 followed by YTD net inflows of $12.34 Bn in 2021.
- 20th month of consecutive net inflows.
Noteworthy
ETF market to hit $30trn in a decade, Brown Brothers Harriman predicts.
In their annual ETF survey the company found 89% of investors planned to increase or maintain their use of ETFs in 2023. etf.com
Global ETF Assets under Management will increase to at least USD15 trillion by 2027, according to the latest predictions from PWC. pwc
State Street have released a 2023 outlook report where they call the current state of the ETF market ETF 3.0. In it they make the following predictions: State Street
- Active ETFs will see outsized growth
- Fixed Income will shine
- Growth of ETFs in Europe will accelerate
- ESG will have pockets of growth
The Australian ETF industry is expected to reach a record $200 billion in size by 2025 with at least 350 products listed on the ASX, according to Global X.
In the past 12 months, the Australian ETP industry jumped in size by 7.1% to $136.2 billion, with 301 products listed – up 16% from 244 a year earlier, according to ASX data. proactiveinvestors
Additional reads
Ireland extends lead over Luxembourg in ETF industry.
Ireland is now home to more than two-thirds of European ETF assets, with a 67% market share and assets under management of €939bn as of the end of January, according to Morningstar data FT.com
ESG regulatory scrutiny expected to slow ETF development despite ESG ETFs accounted for 65% of inflows into European ETFs in 2022. FT.com
From behind the Desk
Blackwater has launched the ETF BOOTCAMP, a new ETF training program.
The program is designed to provide an in depth 360 degree overview of the ETF marketplace in Europe. The content includes:
History of ETFs – Why ETFs have been successful – The mechanics of ETFs – How to invest in ETFs – The European ETF landscape – How are ETFs distributed in Europe – The future of ETFs
ETF Bootcamp is aimed at people who work in ETFs but want greater insight or those looking to understand the ETF industry from a standing start.
Whether you work on the asset servicing side, the ETF provider side or even those who are ETF investors, this is for you.
Contact us to find out more.
