Actively managed exchange-traded funds and exchange-traded products listed globally saw assets under management hit a record high of $38.2bn at the end of June 2016, according to ETF research consultancy ETFGI.
At the end of June 2016, the global active ETF/ETP industry had 272 ETFs/ETPs, with 372 listings, from 51 providers listed on 17 exchanges in 14 countries.
The milestone was reached on the back of strong inflows during June 2016 with active ETFs/ETPs benefiting from $724m flowing in. Fixed income ETFs/ETPs gathered the largest net inflows during the month with $296m, followed by mixed asset class ETFs/ETPs with $247m, and equity ETFs/ETPs with $145m.
The success of the active ETF/ETP space will likely be viewed as a testament to the growing popularity of ETFs/ETPs as investment vehicles rather than as supportive of the active management space. A recent survey from Casey Quirk by Deloitte showed that passive funds – those tracking indices through rules-based processes – picked-up 72% of asset inflows during 2015, compared to 28% for active funds. However, the liquidity and transparency gained through exchange-traded investment vehicles has helped the active ETF/ETP space to continue to grow.
The active ETF/ETP sector may have also received a further boost to its growth potential following the US Securities and Exchange Commission new rule that will see the time taken between initial filings and launch on certain actively managed ETFs, shortened. The move aims to bring the listing process for actively managed ETFs in line with the one used for index-based ETFs.
Examining the regional differences between active ETF/ETP flows during June, ETFGI found that record levels of assets were also reached at the end of June for active ETFs/ETPs listed in the United States at $26.4bn, Canada with $4.4bn, and in Asia Pacific ex-Japan with US$1.5bn.
Year-to-date (YTD) to the end of June 2016, active ETFs/ETPs have seen net inflows of $3.0bn. Once again, fixed income ETFs/ETPs gathered the largest net inflows YTD with $1.8bn, followed by mixed asset class ETFs/ETPs with $437m, and commodity ETFs/ETPs with $343m. (See graph below for breakdown of AUM in active ETFs by region or asset class).
Source: ETFGI
PIMCO is the largest active ETF/ETP provider in terms of assets dedicated to active ETFs/ETPs with $7.6bn, reflecting 20.0% market share; Source is second with $5.1bn and 13.4% market share, followed by First Trust with $4.8bn and 12.6% market share.
Just seven out of a global total of 272 active ETFs/ETPs have more than $1bn in assets under management (AUM). Together these ETFs/ETPs hold a combined total of $17bn, or 45.3%, of global active ETF/ETP assets.
Some of the largest actively managed ETFs/ETPs on the market at the moment include the:
PIMCO Enhanced Short Maturity Strategy Fund (NYSE Arca: MINT). AUM – $4.7bn. Total expense ratio (TER) – 0.35%.
PIMCO Total Return ETF (NYSE Arca: BOND). AUM – $2.5bn. TER – 0.55%.
Source PIMCO Euro Short Maturity ETF (Xetra: PJS1). AUM – $2.6bn. TER – 0.39%.
Source PIMCO US Dollar Short Maturity ETF (LSE: MINT). AUM – $1.4bn. TER – 0.35%.
First Trust Northern American Energy Infrastructure Fund (NYSE Arca: EMLP). AUM – $1.3bn. TER – 0.95%.
First Trust Preferred Securities and Income ETF (NYSE Arca: FPE). AUM – $1.0bn. TER – 0.86%.
At the end of June 2016, the global active ETF/ETP industry had 272 ETFs/ETPs, with 372 listings, from 51 providers listed on 17 exchanges in 14 countries.