BetaShares Global ETF Review
The BetaShares Global ETF Review is a quarterly review of the growth, trends and investment patterns of the US$5.4T* global ETF industry.
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*As at 31 March 2019. Data sources for data used on this page can be found in the BetaShares Global ETF Review – Q1 2019.
Equity ETF net inflows soar relative to Mutual Fund net outflows
U.S. equity mutual fund net outflows were $41B, in contrast to $52B of net inflows into equity ETFs in Q1 2019, keeping in-line with the trend seen over the last 12 months.
The global ETF industry ended the first quarter of 2019 at a record high of US$5.4T, up by 12% for the quarter
If such rapid growth continues throughout 2019, we would expect the global ETF industry to grow significantly faster than the ~20% average growth it has experienced in the last decade or so.
Flows into Fixed Income ETFs increased significantly at the expense of Equity ETFs
The shift into fixed income at the expense of equities reflected significant risk off sentiment, notwithstanding strong equity market performance in many global sharemarkets.
U.S. investors returned home
While last quarter saw U.S. investors significantly reduce investment into their domestic market, this quarter saw this trend reverse with investors increasing flows into North American Exposures.
Investors bullish on U.S. real estate and bearish on financials
U.S financials were once again sold off as the Fed’s tightening policy has caused the yield curve to flatten, pressuring banks’ earnings. By contrast, real estate saw positive inflows, reflecting investor interest in high yielding sectors under the expectation that the Fed will hold off raising rates this year.
In the spotlight – Cannabis ETFs
Since the beginning of 2018, the cumulative flows into Cannabis ETPs has reached over US$1.5B and the interest from investors shows no signs of slowing down as the industry becomes increasingly legitimised by regulatory approvals around the world.
Learn more about ETFs
For more information about the Australian ETF industry and portfolio construction tips, visit BetaShares Insights
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