ETFGI reports assets invested in Smart Beta equity ETFs/ETPs listed globally have increased 21.9% in 2017 to reach a new record of US$644 billion at the end of September

ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in Smart Beta equity ETFs/ETPs listed globally have increase 21.9% in the first 9 months of the year to reach a new record of US$644 Bn at the end of September, according to ETFGI’s September 2017 global smart beta equity ETF and ETP industry insights monthly report which is part of an annual paid for research subscription service.

Record levels of assets were reached at the end of September for equity smart beta ETFs/ETPs listed globally with US$644.40 Bn, in the United States with US$571.45 Bn, in Europe with US$48.44 Bn, in Canada with US$14.40 Bn and in Asia Pacific (ex-Japan) with US$6.08 Bn.

In September 2017, smart beta equity ETFs/ETPs gathered a record level of US$6.42 Bn in net inflows marking 19 consecutive months of net inflows and a level of US$53.38 Bn in year to date net inflows which is greater than the US$36.53 Bn in net inflows at this point last year. Combining market moves and net inflows, smart beta equity ETF/ETP assets have increased by 21.9% from US$528.76 Bn to US$644.40 Bn, with a 5-year CAGR of 31.3%.

At the end of September 2017, there were 1,284 smart beta equity ETFs/ETPs, with 2,189 listings, assets of US$644 Bn, from 161 providers listed on 40 exchanges in 33 countries.

“The US market typically has performed poorest during the month of September. This year the S&P 500 was up 2.06% in September and is up 14.24% year to date. The S&P 500 Value outperformed S&P 500 Growth up 3.28% and 1.11% respectively, furthering the perception of stronger economic fundamentals. Energy and Financials were September’s top performing sectors, up 9.94% and 5.14%, respectively. The S&P Developed Ex-U.S. BMI gained 2.57% in September and is up 20.76% year to date. Emerging markets declined 0.55% in September due to headwinds including a rising dollar but is up 26.95% year to date. The uncertainty of Brexit negotiations and North Korea are still areas of concern for investors.” According to Deborah Fuhr, Managing Partner and co-founder of ETFGI.

88.7% of Smart Beta assets are invested in the 628 ETFs/ETPs that are domiciled and listed in the United States and 76.8% of the assets are invested in the 511 ETFs/ETPs that provide Smart Beta exposure to the US market.

iShares gathered the largest ’smart beta’ ETF/ETP net inflows in September with US$2.63 Bn, followed by Vanguard with US$1.06 Bn and PowerShares with US$390 Mn net inflows.

Products tracking MSCI ’smart beta’ indices gathered the largest net ETF/ETP inflows in September with US$1.65 Bn, followed by CRSP with US$1.05 Bn and S&P Dow Jones with US$1.01 Bn net inflows.