Equity Smart Beta ETFs/ETPs attracted USD3.40bn in net inflows in Feb

Equity-based Smart Beta ETFs and ETPs listed globally gathered net inflows of USD3.40 billion during February bringing year-to-date net inflows to USD10.13 billion which is lower than the USD14.67 billion gathered at this point last year. 

Year-to-date through the end of February 2020, Smart Beta Equity ETF/ETP assets have decreased by 8.5 per cent from USD860 billion to USD787 billion, which is the 5th highest level of assets on record, according to ETFGI’s February 2020 ETF and ETP Smart Beta industry landscape insights report, an annual paid-for research subscription service. 

“At the end of February, the S&P 500 was down 8.2 per cent as coronavirus cases continued to spread and the potential economic impact weighed on investors and the markets. Outside the US, the S&P Developed ex-US BMI declined nearly 9.0 per cent. The S&P Emerging BMI lost 5.1 per cent during the month. Global equities as measured by the S&P Global BMI ended down 8.1 per cent with 49 of 50 included country indices down, while China gained 0.9 per cent.”  

According to Deborah Fuhr, managing partner, founder and owner of ETFGI.

At the end of February 2020, there were 1,311 smart beta equity ETFs/ETPs, with 2,476 listings, assets of USD787 billion, from 165 providers listed on 41 exchanges in 33 countries. Following net inflows of USD3.40 billion and market moves during the month, assets invested in Smart Beta ETFs/ETPs listed globally decreased by 8.2 per cent, from USD857 billion at the end of January 2020 to USD787 billion.

DividendsETFs and ETPs attracted the greatest monthly net inflows, gathering USD1.76 billion at the end of February. Multi-Factor ETFs and ETPs suffered the greatest outflows during the month and amounted to USD1.75 billion. 

Substantial inflows can be attributed to the top 20 Smart Beta ETFs/ETPs by net new assets, which collectively gathered USD6.74 billion at the end of February, the iShares MSCI USA Minimum Volatility ETF (USMV US) gathered USD798 million alone.