FINANCE - FUNDS

Exchange-traded funds

ETF assets and inflows notch up new records



Exchange-traded fund assets and net inflows from January to August 2021 surpassed 2020 full year totals, the latest figures from ETFGI show. Photo credit: Hans Eiskonen/Unsplash

Exchange-traded fund assets and net inflows from January to August 2021 surpassed 2020 full year totals, the latest figures from ETFGI show. Photo credit: Hans Eiskonen/Unsplash

A record $9.73trn was invested in exchange-traded funds and exchange-traded products at the end of August 2021, according to the research and consulting firm ETFGI.

ETFs recorded net inflows of $834.2bn during the first 8 months of the year, ETFGI said on 10 September. That is more than the total net inflows of $762.8bn recorded for all 12 months in 2020. It was the 27th consecutive month of net inflows, the firm reported.

Assets rose by 21.8%--from $7.99trn to $9.73trn--between 1 January and 31 August 2021, buoyed by strong markets. “At the end of August, the S&P 500 posted its 7th straight month of gains, up 3.0% in the month, benefitting from continued support from the Fed and as positive earnings,” stated Deborah Fuhr, managing partner of ETFGI.

Exchange-traded funds are mutual fund-like products that automatically track an index or type of financial asset, and can be bought or sold in real time on the stock market. Many investors put their cash in ETFs because they typically have lower management fees.

ETFs listed in Europe recorded net inflows of $139.4bn during the first 8 months of the year, ETFGI reported on 7 September. That surpassed the full year net inflows recorded in 2019 ($125.2bn) and in 2020 ($119.9bn). A record $1.54trn was invested in European ETFs and ETPs at the end of August 2021, the research outfit said.

The firm counted a total of 9,302 ETFs and ETPs globally, including 2,499 in Europe.