Assets in smart beta equity ETFs reach record half trillion dollars, ETFGI finds

stock-stockmarket-ftse-index700x450Assets invested in smart beta equity ETFs and ETPs hit a record $497bn (£404bn) at the end of November 2016, consultancy firm ETFGI has found.

In its smart beta report, published last week, the firm shows smart beta equity ETF and ETP assets have increased by 18.1 per cent from $421bn to $497bn year to date through the end of November.

Assets into the same funds have grown 30.6 per cent through five years.

According to the firm, assets within equity smart beta ETFs and ETPs listed in the US were $444.96bn and $11bn in Canada.

The research shows that at the end of November 2016, there were 1,179 smart beta equity ETFs and ETPs from 145 providers on 37 exchanges in 32 countries.

ETFGI co-founder and managing partner Deborah Fuhr says: “The US market had a good month in November with the S&P 500 up 3.7 per cent and the DJIA increased 5.9. The strong dollar caused currency headwinds for international markets.”

Fuhr adds: “The S&P Developed Ex-US BMI declined 1.8 per cent while the S&P Emerging BMI was down 4.7 per cent. In Europe S&P Europe 350 gained 1.24 per cent in November, with almost all the gains attributable to the UK pound rising faster than the British stock market fell. During November the VIX declined dramatically by 21.9 per cent.”

Year to date, 208 new smart beta equity ETFs and ETPs were launched by 67 providers across 48 index providers in 18 countries, while 37 products were de-listed from 18 different providers, the firm says.

In November, net inflows were $7.16bn, while year to date there were net inflows of $47.13bn.

ETF provider iShares gathered the largest smart beta equity net inflows in November with $2.65bn, followed by Vanguard with $1.92bn, according to ETFGI.

Year to date, iShares gathered the largest inflows of smart beta ETFs and ETPs with $30.97bn, followed by Vanguard with $11.47bn and Charles Schwab Investment Management with $4.46bn net inflows.