Active ETFs raise $1.6bn in “challenging” August

Active_passive_roadsignsNet flows into active ETFs globally were US$1.63 billion (€1.37 billion) in August – a month in which broader ETF sales reduced.

ETFGI, an ETF consultancy, said the net flows to active ETFs marked 32 consecutive months of net inflows for ETFs in the active category.

Active ETFs are based on traditional passive products but managers may veer the composition from the benchmark to try and make higher gains.

The August active flows were a small part of the total $16.45 billion of inflows into active ETFs (the figures include other exchange-traded products) over the first eight months of the year. However, the sales figure was not a dramatic drop on the $1.9 billion from the month before.

“August is typically a challenging month for equity markets with the average loss over the past 20 years for the S&P 500 at 1.3%,” said Deborah Fuhr, managing partner of ETFGI.

Overall assets under management in active ETFs globally have increased 40.9% in 2017 to reach $61 billion at the end of August.

Of this, $8.11 billion of AUM was recorded in Europe.

©2017 funds europe