Data from TrackInsight, supplier of TrackInsight™ International View, exhibits the worldwide ETF ma
Data from TrackInsight, supplier of TrackInsight™ International View, exhibits the worldwide ETF market completed 2020 at a document excessive of $7.6 Trillion throughout 6,518 ETFs. A mix of sturdy fairness market efficiency coupled with accelerating investor inflows contributed to the brand new document.
Regardless of challenges created by COVID and market volatility, all areas skilled double-digit development charges over 2020.
- Asia-Pacific was the fastest-growing area, with ETF belongings rising by 28.7% to a brand new excessive of $689 Billion, of which $69 Billion was new stream.
- Belongings in European listed ETFs grew by 26.4%, reaching a brand new document of $1.three Trillion with $138 Billion of recent stream.
- The North American market grew 24.1%, reaching an all-time excessive of $5.6 Trillion in AuM with $536 Billion of recent flows.
ETFs confronted an acid check in 2020 and handed with flying colours. The large development we now have witnessed demonstrates how ETFs have efficiently satisfied buyers of the advantages of a liquid, tradable and clear product – particularly throughout unstable markets.
Anaelle Ubaldino,
Head of ETF Analysis and Funding Advisory, TrackInsight
In opposition to this spectacular backdrop, two areas of the ETF market stood out for trend-busting development trajectories: Lively and ESG.
Lively ETFs grew by 55%, with $80 Billion of recent flows, reaching a brand new excessive of $273.5 Billion in AUM. With practically 200 new energetic ETFs dropped at market in 2020, there are actually over 1,052 listed on exchanges worldwide.
Environmental, Social, Company Governance (ESG) ETFs reached a tipping level in 2020, witnessing an unbelievable 223% development over the yr, reaching a brand new document of $189 Billion in AUM. ESG ETFs captured $97 Billion of flows over the course of 2020. Almost 200 ESG ETFs have been dropped at market throughout the identical interval as ESG is about to turn into a key battleground for issuers over 2021.
ESG and Lively ETFs additionally dominated by way of general efficiency, with 5 of the highest 10 greatest performing ETFs globally (excluding ETCs and Leveraged Funds) following an ESG method and three of the highest 10 following an energetic technique. All delivered triple-digit returns to buyers over 2020.
Ubaldino added, “It’s additionally clear that 2020 was a long-awaited turning level for ESG ETFs with enormous development on this sector. With competitors for probably Trillions of {dollars} of recent ESG belongings heating up, we anticipate to see extra issuers enter the ESG ETF market over 2021.”
Traders can observe this explosive development by way of TrackInsight™ International View, out there in North America solely by way of the Nasdaq Quandl platform, which offers a sturdy supply of core and different information and likewise presents Nasdaq Cloud Knowledge Service by way of its storefront.