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Assets invested in Smart Beta ETFs/ETPs listed globally reach new record of $429bn at the end of June

Wednesday, August 03, 2016
Opalesque Industry Update - ETFGI, an independent research and consultancy firm on trends in the global ETF/ETP ecosystem, has reported assets invested in smart beta ETFs/ETPs listed in globally reached a new record high US$429 billion at the end of June 2016, according to data from ETFGI’s June 2016 global smart beta ETF and ETP industry insights report (click here to view the ETFGI chart of assets invested globally in Smart Beta, Market Cap and Active equity ETFs/ETPs).

Record levels of assets were also reached at the end of June for smart beta ETFs/ETPs listed in the United States at US$390.20 Bn, Canada with US$9.44 Bn, Europe with US$ 26.70, and in Japan with US$832 Mn.

Year to date through end of June 2016, smart beta equity ETF/ETP assets have increased by 7.1% from US$400 Bn to US$429 Bn, with a 5-year CAGR of 31.3%.

“Markets and investors around the world were engulfed in the chaos following what many saw as the unexpected result of the UK’s June 23rd vote. Volatility was up significantly during the month. The S&P 500 index was up just 0.3%. Emerging markets were up 3.94% while developed markets ex-US declined 2.87%. There is still uncertainty in the markets due to questions on when and how Brexit changes will be implement and the many changes happening in UK political parties" according to Deborah Fuhr, managing partner at ETFGI.

In June 2016, smart beta products saw net inflows of US$5.70 Bn. Volatility factors gathered the largest net inflows with US$2.17 Bn, followed by dividend factor based products with US$1.71 Bn and value factor with US$1,592 Mn.

YTD, smart beta products have seen net inflows of $16.15 Bn. Volatility factors gathered the largest net inflows with $14.32 Bn, followed by value factor with $6.83 Bn and dividend factor based products with $3.09 Bn.

iShares gathered the largest smart beta ETF/ETP net inflows in June with US$4.11 Bn, followed by Vanguard with US$1.26 Bn and PowerShares with US$672 Mn net inflows.

YTD, iShares gathered the largest smart beta ETF/ETP net inflows year to date in 2016 with US$19.02 Bn, followed by Vanguard with US$5.26 Bn and Charles Schwab Investment Management with US$2.15 Bn net inflows.

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