ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that assets invested in ETFs and ETPs listed globally amounted to US$4.82 trillion at the end of Q4 2018, following net inflows of US$164.84 billion and market moves during the period. The Global Hedge Fund industry saw assets fall to US$3.11 trillion, with net outflows of US$22.5 billion during the quarter, according to ETFGI’s Q4 2018 Global ETF and ETP industry landscape insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Asset growth of global ETF/ETP industry continues to outpace global Hedge Fund industry. $4.82 trillion invested in 7,620 ETFs/ETPs listed globally at end of 2018. $3.11 trillion invested in 8,311 Hedge Funds listed globally at end of 2018.
According to analysis by ETFGI, $4.82 Tn was invested in 7,620 ETFs/ETPs listed globally at the end of 2018, representing growth in assets of -0.49% over the year, impacted by sharp declines in the major indices during the last quarter. During 2018, assets invested in Hedge Funds globally fell by 3.24% to $3.11 Tn in 8,311 hedge funds, according to a report by Hedge Fund Research. Comparatively, assets invested in ETFs/ETPs had increased 36.23%, from $3.55 Tn to $4.84 Tn in 2017. Over the same period, assets invested in the Global hedge fund industry increased 6.37%, from $3.02 Tn to $3.22 Tn.
The HFRI Fund weighted composite index returned -5.76% in Q4 compared to -13.52% of the S&P 500 index (w/dividends), as many Hedge Funds strategies positioned for a market correction finally came to fruition. Despite this, investors still ploughed money into passive funds, with ETFs/ETPs attracting $164.84 Bn in Q4, while withdrawing $22.5 Bn from Hedge Funds.
Assets invested in the global ETF/ETP industry first surpassed