Alternative Investments/Hedge Funds: ETFs’ AUM Continues To Trounce Hedge Funds (ETFGI)

https://dailyalts.com/wp-content/uploads/2020/11/kings-5278414_640.jpg

As at end of Q3 2020, ETFs AUM exceeded that of hedge funds by $3.58 trillion.

Hedge funds gathered net inflows of $13 billion during Q3 while ETFs/ETPs gathered net inflows of $194.4 billion, according to data from ETFGI. (Mondovisione)

ETFGI Highlights

  • While S&P500 with dividends has returned 5.37% YTD, the HFRI Fund Weighted Composite Index was up 0.64% during the period.
  • As of Q3 2020:
ETFGI # of Funds AUM ($T) Q-o-Q Growth %
ETFs/ETPs 8402 6.89 9.76
Hedge Funds 8019 3.31 4.2
  • Quarterly return during Q3 was 4.24% for the HFRI Fund Weighted Composite Index, while the S&P 500 with dividends earned 5.37%.
  • Assets invested in the global ETF/ETP industry first exceeded those invested in the hedge fund industry at the end of Q2 2015.
  • Growth in AUM in the ETF/ETP industry has surpassed growth in the hedge fund industry since the financial crisis in 2008, observes ETFGI
  • “The pressures on active fund managers to find ways to respond to the rise of ETFs have become irresistible,” said Deborah Fuhr, of ETFGI. “The growth of ETFs is a global tectonic shift that has gathered pace since the 2007/08 financial crisis.”
  • The Financial Times observed in a recent article: “Net flows into exchange-traded funds have jumped 40% so far this year with the growing shift into low-cost index-tracking vehicles forcing the pace of consolidation across the asset management industry to accelerate markedly. Morgan Stanley agreed last week to stump up $7 billion to acquire Eaton Vance while Franklin Templeton paid $6.5 billion to buy Legg Mason earlier this year, two deals that illustrate how traditional active managers are being compelled to reconfigure their businesses in response to ferocious competition from ETF providers.”

Related Story:    ETFs In The First Half of 2020                                              

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2023/03/micheile-henderson-ZVprbBmT8QA-unsplash.jpg
Venture Capital: JMI Closes Oversubscribed Fund XI At $2.4B
March 21, 2023     Latest News, News, Venture Capital

JMI Equity has closed JMI Equity Fund XI and JMI XI Executive Fund with total commitments of $2.4 billion. The oversubscribed fund received strong support from new and existing investors,…

https://dailyalts.com/wp-content/uploads/2023/03/demonstration-g7d8942b57_640.jpg
Alternative Investments/ESG: Fidelity Debuts Climate-Focused, Global Bond ETF In Europe

Fidelity International has launched a new fixed income ETF in Europe, targeting climate-conscious investors. The Fidelity Global Government Bond Climate Aware UCITS ETF is designed to provide exposure to a…

https://dailyalts.com/wp-content/uploads/2023/03/momo-app.jpg
FinTech: Users Can Now Receive Western Union Remittances Into Vietnam’s Highly Popular MoMo App
March 21, 2023     FinTech, Latest News, News

Western Union and MoMo have announced a collaboration enabling MoMo’s 31 million customers to receive Western Union money transfers through the MoMo app. This is the first time Western Union’s…

https://dailyalts.com/wp-content/uploads/2023/03/hands-g148b9b24c_640.jpg
Artificial Intelligence: Accenture Snaps Up India-Headquartered Industrial AI Firm Flutura

Accenture (NYSE: ACN), a global professional services company, has announced its acquisition of Flutura, an industrial artificial intelligence (AI) company based in Bangalore, India. Flutura specializes in industrial data science…