Global currency hedged ETFs and ETPs gathered net inflows of USD3.10bn in Feb
Currency hedged ETFs and ETPs listed globally gathered net inflows of USD3.10billion during February bringing year to date net inflows to USD7.17 billion.
Total assets invested in currency hedged ETFs and ETPs decreased by 2.2 per cent from USD181 billion to USD177 billion, with a 5-year CAGR of 21.3 per cent, according to ETFGI’s February 2020 Currency hedged ETFs and ETPs 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," according to Deborah Fuhr, managing partner, founder and owner of ETFGI. "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.”
At the end of February 2020, there were 783 currency hedged ETFs/ETPs, with 1,709 listings, assets of USD177 billion, from 73 providers listed on 29 exchanges in 22 countries. Following net inflows of USD3.10 billion and market moves during the month, assets invested in currency hedged ETFs/ETPs decreased by 2.2 per cent, from USD181 billion at the end of January to USD177 billion.
At the end of February 2020, there were currency hedged ETFs/ETPs hedged against 15 different currencies. Year to date, seven new currency hedged ETFs/ETPs were launched by 13 providers across seven index providers in 8 countries, while 7 products were delisted from two different providers.
During the month, Mixed exposures gathered the largest net inflows with USD1.42 billion, followed by United States exposures with USD1.29 billion and Global-Developed exposures with USD707 million, while Asia Pacific-Developed exposures experienced the largest net outflows with USD656 million. On a year to date basis, Mixed exposures gathered the largest net inflows with USD2.86 billion, followed by United States exposures with USD2.50 billion and Global-Developed exposures with USD1.92 billion, while Asia Pacific-Developed exposures experienced the largest net outflows with USD870 million.
The top 10 currency hedged ETFs/ETPs by net new assets collectively gathered USD2.81 billion at the end of February.
The Vanguard Total International Bond ETF (BNDX US) gathered USD976 million, the largest net inflow for the month.