October 20, 2017

Investors Continue to Pour Money Into Equity ETFs

by Patrick Keon

Equity ETFs have taken in over $222 billion of net new money during the first three quarters of 2017. This number puts equity ETFs on pace to have their largest annual net inflows ever, besting the $200.7 billion of positive net flows for 2013. Passively managed equity mutual funds have also fared well this year, with almost $119 billion of net inflows, but actively managed equity mutual funds have continued their slide; over $140 billion have left their coffers. Actively managed equity mutual funds have suffered net outflows on an annual basis every year except one (2013) since the global financial crisis; for 2013 they had a net-positive flow of just over $150 billion. Since the crisis, equity ETFs have taken in a total of $1.4 trillion of net new money and passively managed equity mutual funds have grown their coffers by over $800 billion, while actively managed equity products have had net-negative flows of just over $1.0 trillion. Equity ETFs have grown their total assets under management to $2.5 trillion during this time, an increase of over 488% since 2008.

The net inflows for equity ETFs this year so far are fairly concentrated, with the five largest positive net flows accounting for almost 35% of the total. The top-five net inflows have gone into familiar names (iShares and Vanguard) with a diverse mix of investment strategies; two focus on U.S. large-cap stocks, another on emerging markets, and the other two on broader non-U.S. mandates. The largest net inflows (+$23.3 billion) belong to iShares Core S&P 500 ETF (IVV), while the other product focusing on U.S. large cap stocks, Vanguard 500 ETF (VOO), has pulled in $9.9 billion of net new money. The emerging market product, iShares Core MSCI Emerging Markets ETF (IEMG), has had positive net flows of $13.2 billion, while iShares Core MSCI EAFE ETF (IEFA) and Vanguard FTSE Developed Markets ETF (VEA) have grown their coffers by $16.5 billion and $14.2 billion, respectively.

Find out more about Thomson Reuters Lipper, the global leader in independent fund performance data.

Article Keywords

Get In Touch

Subscribe