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ETFs selling better than hedge funds, research shows

ETFsExchange-traded funds (ETFs) are getting closer to another trillion-dollar milestone as their assets continue to grow.

ETFGI, which produces analysis of the ETF and wider exchange-traded products (ETP) market, said these products had $4.92 trillion (€4.21 trillion) invested in them globally at the end of the first quarter (Q1).

Deborah Fuhr, founder of ETFGI, pointed out that ETF/ETPs had extended their lead over hedge funds in terms of assets under management. Hedge funds had $3.22 trillion invested in them, she said using Hedge Fund Research figures, meaning $1.7 trillion separated the ETF/ETP market from hedge funds at the end of Q1.

Q1 saw a 1.74% growth in assets invested in ETFs/ETPs compared to 0.13% growth in hedge fund assets.

During the quarter, ETFs/ETPs listed globally gathered $137billion in net inflows, according to ETFGI’s ‘Global ETF and ETP industry insights’ report. In contrast, hedge fund net inflows were $1.1 billion.

Growth in assets in the ETF/ETP industry has outpaced growth in the hedge fund industry since the financial crisis in 2008, ETFGI said.

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