Global exchange-traded funds (ETFs) attracted the second-highest net inflow on record, taking in year-to-date (YTD) net inflows of US$417.9 billion, a decline from US$572.4 billion over the same period last year, independent research and consultancy firm ETFGI reported on Wednesday (Jun 15).
The independent research and consultancy firm noted that May's net inflows of US$80.3 billion were "strong", marking 36 months of consecutive net inflows in the global ETFs industry.
A total of US$1.14 trillion in net inflows were gathered in the past 12 months, while equity ETFs and exchange-traded products (ETPs) listed globally saw $35.6 billion in net inflows in May 2022.
Deborah Fuhr, managing partner, founder and owner of ETFGI, noted that substantial inflows can be attributed to the top 20 ETFs ranked by net new assets gathered in May, which collectively gathered US$55.6 billion.
During May, assets invested globally in the ETFs industry was US$9.46 trillion, a 1 per cent increase from US$9.36 trillion as at end-April.
This brings total assets invested in the global ETFs industry as at end-May to US$9.46 trillion, which is a 7.9 per cent decrease from S$10.27 trillion at the end of 2021.
Fuhr noted that the S&P 500 was up 0.18 per cent in May but fell 12.76 per cent in the first 5 months of 2022 as "inflation concerns along with Fed rate hikes weighed on markets". She added that among emerging markets, Chile and Columbia saw the largest increases and were up 19.8 per cent and 9 per cent respectively in May.
ETFs typically are open-end index funds that provide daily portfolio transparency; are listed and traded on exchanges like stocks on a secondary basis; and utilise a unique creation and redemption process for primary transactions.
ETPs refer to other products that have similarities to ETFs in the way they trade and settle, but do not use a mutual fund structure. The use of other structures including grantor trusts, partnerships, notes and depository receipts by ETPs can create different tax and regulatory implications for investors when compared to ETFs, which are funds.