ETFs overtake actively managed funds in US for Q3
The global exchange-traded fund (ETF) industry for the September quarter passed those in US active managed funds for the first time, according to BetaShares Global ETF review Q3 2019.
The quarter finished with a record high US$5.8 trillion ($8.4 trillion) in assets under management, reflecting growth of 20% year to date.
ETFs took 75% of flows in the US investment management industry in the quarter and passive ETFs took in $US73 billion.
Fixed income received the highest inflows with 48.4%, however, that was drop off from the 61.2% it received last quarter.
Equity ETFs held at exactly 37.8%, the same as the previous quarter, while commodities rose 0.3% to 10% this quarter.
Global trends were mirrored locally with fixed income being the highest category, which had received AU$2.5 billion year to September 2019.
Alex Vynokur, BetaShares chief executive, said defensive exposures had continued to attract investor funds, reflecting concerns about the US/China trade conflict.
“The marked change from last quarter, however, was the more diversified approach taken, with investors allocating significant funds to precious metals alongside fixed income.”
AUTHOR
Chris Dastoor
Recommended for you
With an explosion of private credit managers appearing in the market, two alternatives experts believe a consolidation is needed to maintain the quality of the sector.
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
L1 Capital, which is in talks to merge with Platinum Asset Management, has indicated it will be voting against a deal to convert a Platinum LIC into an ETF.
Evidentia Group has hired a head of quantitative investments who joins the investment firm and managed account provider from AMP.
