Asia Pacific (ex-Japan) ETF industry hits $846.38bn milestone

Assets invested in the ETFs industry in Asia Pacific (ex-Japan) reached a new milestone of US$846.38 billion at the end of February.

According to ETF research firm ETFGI’s data, this figure increased from the previous record of $784.24 billion reported at the end of December 2023.

The report further highlighted a substantial year-to-date growth rate of 7.9%, with assets climbing from $784.24 billion at the end of 2023 to the current milestone. Notably, the industry experienced robust net inflows of $32.47 billion in February alone, contributing to a total year-to-date net inflow of $71.17 billion. These figures represent the highest recorded YTD net inflows to date, surpassing previous records set in 2022 and 2021.

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February marked the 32nd consecutive month of net inflows for the Asia Pacific (ex-Japan) ETF industry, underscoring sustained investor confidence and interest in the region’s offerings. At the end of February, the industry boasted 3,278 products across 3,454 listings, with assets distributed among 254 providers listed on 20 exchanges across 15 countries.

Equity ETFs led the charge, accruing net inflows of $27.46 billion during February, significantly surpassing previous year-to-date figures. Fixed income ETFs also experienced notable growth, with net inflows of $4.52 billion in February alone.

Furthermore, commodities ETFs/ETPs reported positive net inflows of $108.83 million in February, contributing to a total year-to-date inflow higher than the previous year’s outflows. Active ETFs also demonstrated robust performance, with net inflows totalling $755.66 million during February, surpassing previous year-to-date figures.

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The top 20 ETFs by net new assets played a significant role in driving these inflows, collectively amassing $30.80 billion in February. Notably, the China CSI 500 ETF – Acc (510500 CH) emerged as the leader in individual net inflows, gathering $4.03 billion during the month.
“The S&P 500 index increased by 5.34% in February and is up by 7.11% YTD. Developed markets excluding the US increased by 1.90% in February and are up 1.58% YTD. Ireland and Israel saw the largest increases amongst the developed markets in February,” said Deborah Fuhr, managing partner, founder, and owner of ETFGI.
“Emerging markets increased by 4.18% during February and are up 0.57% YTD. China and Peru saw the largest increases amongst emerging markets in February.”

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