The ETP market experienced significant growth in May, with the addition of 40 new products. The total number of funds available now stands at 9,084, providing investors with a wide array of investment options. While this trend may not be surprising, the split between new active- and passively-managed strategies certainly deserves to be recognized. The launch of 56 actively-managed products and the removal of 16 passively-managed strategies highlight the growing investor appetite for active ETPs.
Fixed Income and Active Equity ETPs led the way in inflows in May. These categories, representing less than 25% of total assets, garnered substantial investor interest, accounting for more than 75% of the total inflows for the month.
According to the ETF Market Overview league table, ETPs represented $9,510 Bn of assets as of the end of May 2023.
Active ETF and Fixed Income strategies are popular in the Americas
Americas-listed ETPs benefited from +$33.9 Bn net inflows in May, contributing to year-to-date net inflows of +$183.6 Bn across the 4,322 ETPs available, including ETFs, ETCs & ETNs.
The Americas represent 92% of total assets poured into Actively Managed ETPs ($486 Bn in the Americas - $529 Bn Total) and this gap continued to grow in May with +$11.9 Bn of inflows directed toward North and South American products vs $0.5 Bn into Europe domiciled vehicles.
In parallel, Fixed Income ETPs were particularly sought-after last month with +$17.6 Bn of new assets invested. In comparison, Equity ETPs, which gather almost four times more assets ($5,698 Bn vs. $1,487 Bn), recorded “only” +$15.1 Bn of inflows over May 2023, equally split between passive and active strategies.
Top 3 Americas ETP Issuer Rankings by Flows in May 2023
- SPDR: +$12 Bn
- Vanguard: +$7.3 Bn
- J.P. Morgan Asset Management: +$2.9 Bn
See the full ETF Issuer Rankings.
Fixed Income and ESG exposures under the spotlight in Europe
Europe-listed ETPs benefited from +$8 Bn of net inflows in May, contributing to year-to-date net inflows of +$68.6 Bn across the 3,823 ETPs available in the region, representing $1,575 Bn of total assets.
In the wake of the global trend, Fixed Income related products recorded impressive inflows from European investors in May with +$6.5 Bn of new assets invested. Fixed Income ETPs – mainly in the form of passive strategies - recorded 82% of total inflows in May, representing 25% of total assets managed through ETPs in Europe.
ESG investments in Europe continued to gain traction, attracting significant inflows of +$5.3 Bn in May. The region has been at the forefront of sustainable investing, with a strong emphasis on environmental and social factors, as well as corporate governance practices. In contrast to Europe, the Americas experienced a trend of investors withdrawing funds from ESG investments through the month, amounting to -$0.3 Bn.
Top 3 Europe ETP Issuer Rankings by Flows in May 2023
- iShares: +$5,6 Bn (+€5,3 Bn)
- BNP Parisbas Easy: +$1,4 Bn (+€1,3 Bn)
- Vanguard: +$1,2 Bn (+€1,1 Bn)
See the full ETF Issuer Rankings.
33 weekly updated league tables are freely available on the Global ETF survey microsite.
Please note that the information presented in this article is based on available data up until June 12, 2023.
