October marked another month of strong inflows for global ETFs/ETPs, according to preliminary findings from ETFGI’s October 2013 Global ETF and ETP industry insights report.
Combining the US$32.6 billion of net inflows with positive market performance during October global ETF/ETP assets reached a new record high of US$2.3 trillion.
Deborah Fuhr, managing partner at ETFGI, said: "The expectation that the Federal Reserve will maintain it’s QE scheme at its current size into 2014 and positive market performance encouraged investors to put net inflows of US$32.6 billion back into the market through ETFs/ETPs."
In October 2013, equity ETFs/ETPs gathered the largest net inflows with US$34.6 billion, while commodity ETFs/ETPs experienced the largest net outflows with US$2.8 billion followed by fixed income ETFs/ETPs that had net outflows of US$227 million.
Year to date (YTD) through end of October, global ETF/ETP assets have increased by 19% based on positive market performance and net inflows of US$202.2 billion, which is in line with the level of net inflows at this point in 2012.
Equity ETFs/ETPs gathered the largest net inflows with US$193.9 billion which is significantly higher than the US$112.7 billion at this point in 2012, followed by fixed income ETFs/ETPs with inflows of US$21.4 billion which is less than half the US$56.2 billion gathered YTD in 2012.
Commodity ETFs/ETPs experienced outflows US$33.0 billion which is a reversal of the US$20.1 billion net inflows at this point in 2012.
Equities have been the preferred area to invest new assets in 2013 with net inflows of US$193.9 billion. North American equity ETFs/ETPs have gathered the largest net inflows YTD with US$117.7 billion, followed by developed Asia Pacific equity with US$32.8 billion, and developed European equity with US$20.7 billion, while emerging market equity ETFs/ETPs experienced net outflows YTD with US$6.3 billion.
YTD, Vanguard ranks first based on net inflows of US$51.6 billion, iShares is 2nd with US$51.3 billion, WisdomTree is 3rd with US$12.8 billion, PowerShares is 4th with US$12.6 billion and SPDR is 5th with US$9.5 billion.