Trackinsight’s mid-year update reveals mixed fortunes for Vanguard, SPDR and LGIM
ETF data platform Trackinsight has released the latest update to its 2021 Global ETF Survey, revealing key global trends for the first quarter of the year.
370 professional investors, managing over USD345 billion in ETF assets, completed the survey and it reveals that the North American ETF market, which reached USD5.8 trillion in AuM in Q1 2021, saw growth dominated by Vanguard.
The issuer captured over 42 per cent of total flows in the region, adding an incredible USD95 billion in the first quarter. Total ETF flows in North America were USD218 billion over the quarter.
However, Vanguard could not replicate this success in Europe where its ETF business has struggled to compete, Trackinsight says. Vanguard added only USD3.8 billion of flows in Europe, falling far short of the European market leader, iShares, that attracted USD19.6 billion in the same period. Vanguard has only 5.8 per cent ETF market share in Europe, compared to nearly 29 per cent market share in North America.
However, Vanguard saw surprising success in its US Active ETF business, growing assets 31.4 per cent year-on-year to USD5.3 billion. This growth rate is second only to Ark Investments that has seen 36.7 per cent year-on-year growth in their active ETF suite, which reached USD47 billion in assets by the end of the first quarter.
In European ETF markets, the survey shows that SPDR seems to have finally figured out its distribution strategy for local investors, growing an astonishing 1,234 per cent year-on-year, reaching USD6 billion in assets. The next fastest-growing issuer, Legal & General Investment Management expanded 33.5 per cent year-on-year to reach a total of USD9.5 billion in assets.
Julien Scatena, Head of Client Solutions at Trackinsight says: “Far from bridging the gap with passive ETFs, which now represent USD7.8 trillion in assets under management, actively managed strategies gained ground during Q1 2021 with 15 per cent of net inflows. Interestingly, the active ETF assets are skewed toward Fixed Income strategies (48 per cent of total AUM), while equity strategies are way ahead in the passive world (80 per cent of total AUM). Since the beginning of the year, their global assets increased by 9.5 per cent (the most significant increase among the different asset classes) to reach USD 6.3 trillion globally.”