BetaShares Global ETF Review
The BetaShares Global ETF Review is a quarterly review of the growth, trends and investment patterns of the US$5.6T* global ETF industry.
Scroll down to view our key observations from the latest review, and request the full copy using the button below.
*As at 30 June 2019. Data sources for data used on this page can be found in the BetaShares Global ETF Review – Q2 2019.
Passive stays massive!
This quarter showed a strikingly clear preference by investors into passive investments, and, in particular, passive ETFs, which, in the U.S. market took in ~US $60B versus outflows in U.S. active mutual funds of ~US $14B.
The global ETF industry ended the second quarter at a record high of US $5.6T, up ~6%
The global ETF industry grew 17% in just the six months to June 2019. If this rapid rate continues, we expect the industry will start to grow significantly faster than the ~20% p.a. average growth experienced over the last decade or so.
ETF flows: what’s trending, what’s fading? Over 61% flows went to fixed income ETFs during the quarter.
The second quarter of 2019 saw investors continue to allocate heavily into fixed income, which received even more absolute flows than the very strong flows of Q1. Equities flows increased somewhat but were still substantially lower than fixed income flows.
The focus on fixed income was mirrored across all major ETF markets. Europe has been even more dominant than the U.S for fixed income inflows. Additionally, figures from the National Bank of Canada show that fixed income flows in the Canadian market have been ~60% of flows YTD.
Sector observations: healthcare sells down, utilities proved popular
There was a tremendous amount of selling in healthcare as many large healthcare companies saw negative performance. The sector saw outflows of ~US $3B this quarter. Utilities was again a popular sector for investors, with flows growing strongly quarter-on-quarter.
In the spotlight: going for gold
June itself was a particularly strong month for flows with ~US $3B of inflows in this period, which are being bought up as investors seek out ‘safe haven’ assets and the price of the precious metal continues to rally.
Learn more about ETFs
For more information about the Australian ETF industry and portfolio construction tips, visit BetaShares Insights
The BetaShares Global ETF Review is a quarterly publication which examines the key trends and developments in the global ETF industry. The Global ETF Review has been designed as an accompaniment to our monthly Australian ETF Review which focuses on the local ETF market. Given its maturity and scale, our focus in the Global report is primarily the U.S. ETF industry – which, being by far the largest ETF industry globally. All figures in the report are in U.S. dollars, unless otherwise noted.