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ETFs cross $4trn milestone, again

Global_chartsThe global exchange-traded product (ETP) industry, which includes ETFs, powered through the $4 trillion barrier in May, according to BlackRock.

The asset manager said yesterday that industry assets under management (AUM) globally reached $4.044 trillion (€3.609 trillion) at the end of May, having grown by $1 trillion in the past two years.

ETFGI, an ETF consultancy, already reported in May that ETF assets globally had crossed the $4 trillion milestone. The consultancy’s latest figure from earlier this week for ETF global AUM was $4.103 for the end of May.

BlackRock’s analysis showed that European equity ETPs helped the rise. The product set enjoyed $9.5 billion of inflows during May and $22.9 billion during the year until May 31.

Total ETF AUM in Europe was $673 billion.

Patrick Mattar, of BlackRock’s iShares ETF business, said, “The French election has seemingly assuaged some concerns around European political risks, paving the way for allocations to European assets.”

BlackRock said that in the last 12 months there had been a clear rotation out of products that capture the low volatility factor, and towards the value factor. It is thought this was spurred by the US election.

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