Global ETF assets extend lead over hedge fund assets to USD3.58 trillion

Assets invested in the global ETFs and ETPs industry extended their lead over global hedge fund industry assets to USD3.58 trillion at the end of Q3 2020, an increase of 18.15 per cent since 2019. 

Year to date through the end of Q3 the HFRI Fund Weighted Composite Index was up 0.64 per cent, while the S&P 500 Index with dividends has increased 5.37 per cent

Hedge fund gathered net inflows of USD13 billion at the end of Q3 while ETFs/ETPs gathered net inflows of USD194.4 billion.

Assets invested in the global ETF/ETP industry first surpassed those invested in the hedge fund industry at the end of Q2 2015, as ETFGI had forecasted. Growth in assets in the ETF/ETP industry has outpaced growth in the hedge fund industry since the financial crisis in 2008.

According to ETFGI’s research USD6.89 trillion were invested in 8,402 ETFs/ETPs listed globally at the of Q3 2020, representing an increase in assets of 9.76 per cent over the quarter. Over the same period assets invested in hedge funds globally increased by 4.2 per cent, to USD3.31 trillion in 8,019 hedge funds, according to a report by HFR.

During the third quarter of 2020 ETFs/ETPs listed globally gathered USD194.4 billion in net inflows, according to ETFGI’s Global ETF and ETP industry insights report. In contrast, HFR reported that hedge funds gathered net inflows of USD13 billion in Q3 2020. 

In Q3 2020 the performance of the HFRI Fund Weighted Composite Index was up 4.24 per cent, while the S&P 500 Index with dividends was up 8.92 per cent. Year to date, the HFRI Fund Weighted Composite Index was up 0.64 per cent, while the S&P 500 Index with dividends was up 5.37 per cent.