Asia Pacific ETF assets increased by 31.4 per cent in 2017 says ETFGI

ETF data provider ETFGI reports that assets invested in ETFs and ETPs listed in Asia Pacific (ex-Japan) increased by 31.4 per cent during 2017 to reach a new high of USD170.26 billion at the end of December.

Assets invested in ETFs/ETPs listed in Asia Pacific (ex-Japan) increased by a record USD40.24 billion during the year, to reach a new high of USD170.26 billion over double the previous record of USD12.50 billion set in 2016. The increase of 31.4 per cent, from USD129.61 billion at the end of 2016, also represents the greatest growth in assets since 2009 when markets recovered following the 2008 financial crisis, ETFGI says.

During 2017 ETFs/ETPs listed in Asia Pacific (ex-Japan) saw net inflows of USD6.54 billion; 45.8 per cent less than net inflows for 2016. December 2017 also marked the second consecutive month of net inflows into ETFs/ETPs listed in Asia Pacific (ex-Japan), with USD2.75 billion gathered during the month.

ETFGI writes that the majority of these flows can be attributed to the top 20 ETFs by net new assets, which collectively gathered USD11.94 billion during 2017. The BHARAT 22 ETF (BHART22 IN) on its own accounted for net inflows of USD1.40 billion.

Similarly, the top 10 ETPs by net new assets collectively gathered USD365.00 million year-to-date during 2017. Equity ETFs/ETPs listed in Asia Pacific (ex-Japan) saw net inflows of USD4.00 billion in December, growing net inflows for 2017 to USD5.08 billion. Fixed Income ETFs and ETPs experienced net outflows of USD1.38 billion in December, bringing net outflows for 2017 to USD1.18 billion.

To conclude, ETFGI found that investors have tended to invest in lower cost and core ETFs in 2017 with the BHARAT 22 ETF (BHART22 IN) accumulating net inflows of USD1.40 billion and a TER of 0.95bp.

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Beverly Chandler
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