Within the investing world, ETFs are continuing to experience record inflows; partway into August saw inflows already exceeding all of 2020’s net inflows into ETFs and ETPs.
Consulting, research, and analytics company ETFGI reported record inflows of $94.64 billion globally into ETFs and ETPs, reported IR Magazine. This brings the year-to-date net inflows to $834.21 billion, surpassing last year’s total of $762.77 billion, and nearly double what last year’s reporting was; August of 2020 recorded $427.56 billion in net inflows.
Additionally, the assets that were invested into ETFs and ETPs globally increased from $9.46 trillion at the end of July to $9.73 trillion at the end of August, reflecting a 2.8% growth in one month alone.
Not only are ETFs smashing their records, but the equities that are listed within them are experiencing tremendous growth. The net inflows for global ETFs and ETPs were $69.06 billion in August, with a year-to-date total of $581.25 billion. This smashed the total inflows of $136.96 billion into equities listed within ETFs and ETPs for all of 2020 .
Active ETFs and ETPs are also outperforming their 2020 stats; in August 2021, there were $6.99 billion in net inflows, totaling $95.22 billion year-to-date. Last year over the same period, inflows were $43.04 billion.
Investment into active management is only growing, particularly given recent market volatility and some analysts predicting downturn in the outperforming markets by the end of the year. Actively managed funds have historically outperformed their benchmarks in times of uncertainty and volatility, and many advisors are shifting their funds into drawdown protection or active management funds that can respond quickly to changing market conditions.
T. Rowe Price has more than 80 years in the investment industry and touts over 70 funds with four to five star Overall Morningstar Ratings. The firm has more than 700 investment professionals, all working to use the latest field research and data for their actively managed funds. They currently offer five different actively managed ETFs, guided by portfolio managers averaging 17 years with the company.
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