Global Smart Beta ETFs saw net outflows of USD2.22bn in July 2020

Equity-based Smart Beta ETFs and ETPs listed globally saw net outflows of USD2.22 billion during July bringing year-to-date net inflows to USD10.36 billion which is significantly lower than the USD52.90 billion gathered at this point last year. 

July marked the third consecutive month of net outflows for Smart Beta ETFs and ETPs listed globally. Year-to-date through the end of July, Smart Beta Equity ETF and ETP assets have decreased by 5.2 per cent from USD863 billion to USD818 billion, with a five-year CAGR of 22.5 per cent, according to ETFGI’s July 2020 ETF and ETP Smart Beta industry landscape insights report, a monthly report which is part of an  annual paid-for research subscription service.  

“The S&P 500 gained 5.6 per cent in July, aided by the US Federal Reserve stimulus and strong earnings," says Deborah Fuhr, managing partner, founder and owner of ETFGI. "International markets also gained, with Developed Ex-U.S. and Emerging up 3.0 per cent and 8.5 per cent, respectively. In the developed markets Scandinavian countries benefited most, led by Norway (up 10.8 per cent) and Sweden (up 10.1 per cent); while Japan (down 2.0 per cent) was the sole negative performer among developed countries. Dollar weakness contributed toward the positive momentum in Emerging markets where 19 of 25 countries gained, led by Brazil (up 14.4 per cent) and Pakistan (up 13.4 per cent), while Taiwan (up 12.1 per cent) neared an all-time high.”  

At the end of July 2020, there were 1,351 smart beta equity ETFs/ETPs, with 2,540 listings, assets of USD818 Bn, from 179 providers listed on 41 exchanges in 33 countries.

Substantial inflows can be attributed to the top 20 Smart Beta ETFs/ETPs by net new assets, which collectively gathered USD4.30 billion during July. The iShares Edge MSCI USA Value Factor ETF (VLUE US) gathered USD587.05 Mn alone.