Last updated: 09:48 / Tuesday, 29 December 2015
Deutsche Bank Markets Research

The Global ETP Industry Reached a New Record 2.9 Trillion US Dollars at the end of November

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The Global ETP Industry Reached a New Record 2.9 Trillion US Dollars at the end of November
  • American ETP sector contributed US$ 26 billion to global growth at the end of November. Since the start of the year US ETPs have secured virtually US$ 200 billion
  • European ETF sector continued to grow during November, the sector secured US$ 3.4 billion
  • Asian ETPs saw a continuation of the negative trend of the previous month, investors withdrew US$ 3.7 billion

According to Deutsche Bank Markets Research’s latest report, the global ETP industry continued to grow during November. After net inflows totaling US$ 34 billion in October, the November figure was a further US$ 25.7 billion. As such, the industry now manages US$ 2.9 trillion. As in the previous month, the American ETP sector was the driver of this growth. It contributed US$ 26 billion to global growth. Since the start of the year US ETPs have secured virtually US$ 200 billion. In keeping with the previous month, inflows from Equity ETFs dominated with US$ 25 billion.

The trend for Bond ETFs turned negative in November. In contrast to worldwide inflows of US$ 14.5 billion for this segment in October, during the month just past investors withdrew US$ 47 million. Inflows also declined for Commodities ETCs. After a plus of US$ 789 million in October, the past month saw a minus of US$ 153 million. In parallel with the American ETP sector, the European ETF sector continued to grow during November. Following net inflows of US$ 6.9 billion for October, the sector secured US$ 3.4 billion in November. Equity ETF inflows also dominated in this case. Conversely, Asian ETPs saw a continuation of the negative trend of the previous month. Investors withdrew US$ 3.7 billion. Equity ETFs were particularly affected with outflows running to US$ 3 billion. In fact, Bond ETFs also recorded a decline.   

European ETF Market In and Outflows

Equities:

The positive trend for European ETFs continued during November. In total, the sector recorded net inflows of EUR 3.1 billion, compared with October’s EUR 5.9 billion. This was primarily due to Bond ETFs with net inflows of EUR 515 million which was significantly lower than the previous month (+ EUR 3.5 billion). At the same time, net inflows for Equity ETFs at EUR 2.5 billion were slightly higher than in October (+ EUR 2.4 billion). 

ETFs on US Equities were particularly in demand with European investors. With net inflows of EUR 637 million, US Equities accounted for one quarter of positive Equity ETF cash flows, followed by Global Indices (+ EUR 436 million) and Japanese Equities (+ EUR 387 million). This marked a trend change for US Equities after investors withdrew capital totaling EUR 227 million from this segment in October.

Net inflows recorded by ETFs on European Equities fell to EUR 54 million after EUR 1.1 billion the previous month. Since the start of the year, cumulative net inflows recorded by ETFs on broadly-based European Equity Indices total EUR 20.3 billion, although during November the trend showed a slight change with investors withdrawing EUR 279 million from this segment.

The positive shift in ETFs on Emerging Markets continued in November. This segment recorded a further EUR 6 million following EUR 824 million in October. Since the start of the year however, Emerging Markets ETFs have registered total outflows of EUR 1.9 billion. Having said that, during November inflows for ETFs on large Emerging Markets declined, in particular India ETFs where investors withdrew EUR 225 million. Positive inflows were recorded by ETFs on international Emerging Markets Indices. Strategy ETFs achieved a turnaround in November again registering inflows of EUR 178 million, after October’s outflows of EUR 481 million.

Bonds

The positive trend for Bond ETFs also progressed in November, although net inflows of EUR 0.5 billion were significantly lower than the October figure (+ EUR 3.5 billion). In this arena, ETFs on Corporate Bonds accounted for the highest inflows with EUR 1.7 billion. This exceeded the October inflows figure. From an annual viewpoint, Corporate Bonds have registered net inflows amounting to EUR 13.1 billion. The positive trend over recent months for Sovereign Bonds has come to an end for the time being. Investors withdrew EUR 1.3 billion from this segment.

Commodities

European Commodities ETPs registered EUR 166 million in November after EUR 340 million during October. While ETFs on Industrial Metals did once again generate slightly positive cash flows, ETFs on Precious Metals shed EUR 167 million contrasted with October when this segment had made a positive contribution to inflows.

Most Popular Indices

  • In November, investors showed interest in Real Estate and Dividend ETFs. As such, ETFs on Real Estate Equity Indices in particular came high up the lists.
  • The most popular Equity Indices in November were the S&P 500, the Euro STOXX 50 as well as the Stoxx 600.
  • In the Bond arena, ETFs on Corporate Bond Indices in particular proved to be some of the most popular indices.
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