Global ETF cash-flow reportGlobal ETF/ETP net cash flow by asset class Cash-flow highlights by asset...
Transcript of Global ETF cash-flow reportGlobal ETF/ETP net cash flow by asset class Cash-flow highlights by asset...
1
Sources: All charts and commentary above are based on Vanguard calculations using data from ETFGI as at 31 December 2019.
Note: All figures throughout this report are in US dollars unless otherwise noted.
For professional investors as defined under the MiFID II Directive only. In Switzerland for professional investors only. Not for Public Distribution.
Global ETF net cash flow
December 2018 – December 2019 ($ billions)
Global ETF assets under management (AUM)
December 2018 – December 2019 ($ trillions)
Key themes and trends
• Global equity markets rally: Both developed and emerging market equity continued to post gains in December,
closing the year on a strong note. The FTSE Developed Index posted a 3.0% return for the month, bringing its YTD
gain to 28%. The FTSE Emerging Index posted a larger monthly gain of 6.8%, finishing the year with a 20.6%
return. The main drivers of the market gains included signs that the global growth slowdown may be bottoming,
continued easing by global central banks and progress in US-China trade discussions.
• Continued demand for aggregate bonds and high-yield debt: In December, investors poured more money into
aggregate bonds, high-yield debt and emerging market debt as they moved from US Treasury holdings to riskier
assets. US Treasury indices fell slightly while the Bloomberg Barclays High Yield Bond Index gained 2.0% in the
month and the Bloomberg Barclays US Aggregate Index remained unchanged. Performance and flows were
indicative of the shift in the latter half of 2019 to a more stable macroeconomic environment with positive
manufacturing numbers and the US Federal Reserve shifting to a more neutral stance.
• Gold and oil end the year with solid gains: After taking a breather in November, gold attracted assets once
again as investors balanced out their portfolios at year end. The gold price ended December at $1,522.81 per
ounce, a 4.0% monthly gain and an 18.8% annual return. Oil also gained assets in December mainly due to
cyclical demand and news that OPEC agreed to cut production through to the end of March 2020. Oil prices gained
10.4% in December. Brent and WTI crude oil prices at the end of December were up 24% and 34% YTD
respectively.
Global ETF industry highlightsAssets: US$6.181 trillion Cash flow
December: 3.8% increase from US$5.954 trillion in November December: US$94.2 billion net inflows
YTD: 32.0% increase from US$4.684 trillion in December YTD: US$552.8 billion net inflows
73.99
14.4
45.137.7
47.0
-3.5
63.257.2
-2.9
62.8
48.4
76.2
94.2
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
4.68 5.02 5.18 5.26 5.44 5.18 5.49 5.58 5.48 5.62 5.79 5.95 6.18
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Global ETF cash-flow report
Data as at 31 December 2019
David Hsu, CPA, CMA, ETF Research International
YoY
35% -86% 229% 91% 37% -109% 414% 34% -108% 20% 73% 31% 27%
MoM
27% -80% 212% -16% 25% -107% 1903% -9% -105% 2172% -23% 57% 24%
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
YoY
0% 1% 8% 11% 15% 7% 14% 13% 8% 10% 20% 21% 32%
MoM
-5% 7% 3% 1% 3% -5% 6% 2% -2% 2% 3% 3% 4%
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Sources: All charts and commentary above are based on Vanguard calculations using data from ETFGI as at 31 December 2019.
For professional investors as defined under the MiFID II Directive only. In Switzerland for professional investors only. Not for Public Distribution.
Record month for US- and Europe-listed products
• Flows into US-listed ETFs/ETPs hit a monthly high for 2019 with $56B in flows, finishing the year with $330B
in total net new assets gathered.
• ETFs/ETPs listed in Europe also had their best month of inflows for the year with $20B in new assets. UK-
listed ETFs/ETPs gathered the most assets ($10.1B), followed by Switzerland-listed products ($4.7B),
Germany-listed products ($2.9B) and France-listed products ($2.1B). For 2019, UK-listed ETFs/ETPs
gathered the most assets ($83.4B), followed by Switzerland-listed products ($19.5B) and Germany-listed
products ($15.7B).
• In Asia ex-Japan, December flows were led by China-listed products ($4.3B), followed by Taiwan-listed
products ($2.9B) and South Korea-listed products ($2.6B). In 2019, Taiwan-listed products gathered the most
assets ($25.2B), made up predominantly of bond products, followed by China-listed ETFs/ETPs ($10.0B),
South Korea-listed ETFs/ETPs ($5.2B) and India-listed ETFs/ETPs ($5.1B). Hong Kong was the only market
in the region with ETF/ETP outflows for the year (-$1.7B) as investors reallocated their investments to other
markets within the region due to the ongoing political protests that have dampened the economy.
December 2019 ($ millions) Total flows: $94.0B
Cash-flow highlights by region
3
295
3,105
761
1,744
3,772
9,406
27,467
-764
192
988
1,262
3,375
12,329
20,441
56,148
Middle East and Africa
Latin America
Japan
Australia
Canada
Asia ex-Japan
Europe
USA
YoY ($ millions) Total YTD flows 2019: $571.0B
Total YTD flows 2018: $515.8B
-4,142
2,728
4,341
15,603
72,381
53,969
57,536
313,394
33
3,594
8,209
20,928
36,724
46,053
125,254
330,236
Middle East and Africa
Latin America
Australia
Canada
Japan
Asia ex-Japan
Europe
USA
YTD 2019 YTD 2018
Global ETF/ETP net cash flow by region
Global ETF/ETP industry overview
Metrics by region Metrics by asset class
December 12-month average
Asset class #ETFs/ETPs AUM $B % Market
Equity 4,388 4,779$ 75.3%
Fix ed income 1,246 1,140$ 18.0%
Commodities 480 170$ 2.7%
Activ e 761 156$ 2.5%
Lev eraged 436 52$ 0.8%
Mix ed 98 16$ 0.2%
Others 518 34$ 0.5%
Total 7,927 6,347$ 100.0%
Structure #ETFs/ETPs AUM $B % Market
ETF 6,970 6,178$ 97.3%
ETP 957 169$ 2.7%
Total 7,927 6,347 100.0%
Region #ETFs/ETPs AUM $B % Market
USA 2,361 4,419$ 69.6%
Europe 2,198 1,031$ 16.2%
Japan 205 400$ 6.3%
Asia ex -Japan 1,405 247$ 3.9%
Canada 747 157$ 2.5%
Middle East and Africa 751 36$ 0.6%
Australia 201 43$ 0.7%
Latin America 59 14$ 0.2%
Total 7,927 6,347$ 100.0%
3
Sources: All charts and commentary above are based on Vanguard calculations using data from ETFGI as at 31 December 2019.
For professional investors as defined under the MiFID II Directive only. In Switzerland for professional investors only. Not for Public Distribution.
YoY ($ millions) Total YTD flows 2019: $571.0B
Total YTD flows 2018: $515.8B
December ($ millions) Total flows: $94.0B
10,975
-239
-419
1,243
3,310
-4,623
1,013
34,919
107,290
362,341
-15,775
-303
-183
1,325
2,144
10,339
18,509
40,921
227,821
286,233
Leveraged
Currency
Alternative
Inverse
Mixed
Leveraged inverse
Commodities
Active
Fixed income
Equity
YTD 2019 YTD 2018
Global ETF/ETP net cash flow by asset class
Cash-flow highlights by asset class
Global equity in high demand
• December was a record month for equity ETFs/ETPs globally. The top flows went into ETFs/ETPs tracking US broad
equity ($17.7B), emerging markets ($5.1B) and Korea equity ($2.6B).
• Fixed income ETFs/ETPs saw their highest monthly inflows in December since June. The top fixed income
categories that attracted assets were broad/aggregate bonds as well as government, corporate and high-yield debt,
which together gathered $14.9B in assets.
• Active ETF/ETP flows slowed in the last two months after reaching a three-year high in October. The largest inflows
went to active fixed income US-listed ETFs/ETPs benchmarked to ultra-short bond indices ($413M). As of the end of
December, global active product AUM reached $156.4B.
• Leveraged inverse products dropped significantly in flows during December. US, Japan and Taiwan-listed leveraged
inverse ETFs/ETPs gathered the most assets in this category.
• Commodities ETFs/ETPs had inflows in December after experiencing their first outflows of the year last month.
Precious metals products gathered $267M in assets during the month. Energy products had the most outflows in
December (-$146M), followed by broad commodities (-$84M). In 2019, ETFs/ETPs tracking gold gathered $19.3B in
assets. Total AUM for gold ETFs/ETPs as of the end of December stood at $133.6B.
-1,295
112
-25
-16
1,543
179
862
3,405
18,090
23,697
-1,549
-228
12
22
57
393
562
3,624
20,174
70,904
Leveraged
Inverse
Currency
Alternative
Commodities
Mixed
Leveraged inverse
Active
Fixed income
Equity
December 12-month average
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Sources: All charts and commentary above are based on Vanguard calculations using data from ETFGI as at 31 December 2019.
For professional investors as defined under the MiFID II Directive only. In Switzerland for professional investors only. Not for Public Distribution.
Global fixed income breakdown
Investors pour into broad/aggregate bonds
• Broad/aggregate bond ETFs/ETPs continued to gain assets in December. The top inflows went to products
benchmarked to the Bloomberg Barclays US Aggregate Bond Index ($2.4B), the Bloomberg Barclays US Aggregate
Float Adjusted Index ($1.2B), the Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped TR
Index ($702M) and the Bloomberg Barclays US Government/Credit Float Adjusted 1-5 Years Index ($483M).
• Government bond ETFs/ETPs gathered a steady flow of assets during the month. The products attracting the most
assets were those benchmarked to the JP Morgan Government Bond Index Emerging Markets Global Index ($718M),
the ICE U.S. Treasury Short Bond Index ($492M) and the ICE U.S. Treasury Core Bond Index ($415M).
• In the corporate bond category, the ETFs/ETPs that gathered the most assets were those benchmarked to the
Bloomberg Barclays U.S. Credit Corp 5-10 years Index ($465M) and the Bloomberg Barclays U.S. Corporate A- and
above 10+ Years Liquid Index ($358M).
• High-yield bond ETFs/ETPs finished the year with $4.3B in net new assets gathered during the month. Top flows went
to products that are benchmarked to the Bloomberg Barclays VLI High Yield Index ($1.1B), the S&P/LSTA U.S.
Leveraged Loan 100 Index ($424M) and the Solactive USD High Yield Corporates Total Market Index ($373M).
• Mortgage bond ETFs/ETPs gathered more assets in December. The largest flows went to products that track the
Bloomberg Barclays US MBS Index ($982M).
Global equity breakdown
Strong demand for US equity
• December flows into ETFs/ETPs with North America equity exposure (95% US, 5% Canada) surpassed the
previous month’s flows and finished the year on a high. The total equity AUM for North America exposure has now
reached $2.8T, followed by Asia Pacific ($506B), emerging markets ($479B), global ex-US ($417B), Europe
($281B), and global ETFs/ETPs ($259B).
• Emerging market equity ETFs/ETPs flows posted their highest monthly inflows of the year as investors continued to
add to risk assets. EM equity ETFs/ETPs experienced an extremely volatile year, reaching their lowest point in
August when redemptions exceeded $10B. Over the final three months of the year, EM equity assets grew by $30B.
• ETFs/ETPs with global ex-US equity exposure also reached a YTD high in net inflows. The top flows went to ETFs
benchmarked to the MSCI EAFE Index ($2.7B), followed by the FTSE Developed ex-US All Cap Index ($1.3B) and
MSCI EAFE Small Cap Index ($504M).
Global ETF/ETP net cash flow by equity market exposure
YoY ($ millions) Total YTD flows 2019: $286.2B
Total YTD flows 2018: $362.3BDecember ($ millions) Total flows: $70.9B
74
2,956
-599
2,555
2,177
3,224
13,310
-204
2,112
3,066
5,386
8,218
19,241
33,084
Middle East and Africa
Asia Pacific
Europe
Global
Global ex-US
Emerging
North America
-22,260
-1,077
47,253
32,225
65,970
69,826
170,405
-5,748
890
26,125
30,629
35,453
38,765
160,118
Europe
Middle East and Africa
Global ex-US
Global
Asia Pacific
Emerging
North America
YTD 2019 YTD 2018December 12-month average
5
Sources: All charts and commentary above are based on Vanguard calculations using data from ETFGI as at 31 December 2019.
For professional investors as defined under the MiFID II Directive only. In Switzerland for professional investors only. Not for Public Distribution.
Global issuer and index provider overview
• In December, 58 new ETFs were launched by 36 providers and 62 ETFs were closed.
• Out of a total of 6,970 ETFs, 768 ETFs (approximately 11%) have over $1B in assets, while 4,273 ETFs
(approximately 61%) have less than $100M in assets.
Global ETF net cash flow by provider – Top 3 and bottom 3
December ($ millions) Total flows: $94.0B 2019 YTD ($ millions) Total flows: $571.0B
-647
-558
-401
16,143
16,229
28,579
CCB
Psagot
Direxion
Vanguard
SPDR
iShares
-5,508
-2,674
-1,322
25,559
119,295
174,516
Lyxor AM
Direxion
Psagot
SPDR
Vanguard
iShares
Global ETF/ETP net cash flow by fixed income category
December ($ millions) Total flows $20.2B
2,893
-40
273
908
184
3,199
3,742
-15,576
10,500
19,350
6,052
75,805
-1,799
28
197
533
763
2,684
13,583
19,876
20,311
54,753
57,735
59,133
Govt/Corp
Credit spreads
Covered
Money Market
Convertible
Inflation
Mortgage
High Yield
Emerging
Broad/Agg
Corporate
Government
YTD 2019 YTD 2018
YoY ($ millions) Total YTD flows 2019: $227.8B
Total YTD flows 2018: $107.3B
-157
2
45
64
-150
1,702
222
1,132
1,656
4,305
4,755
4,510
-59
5
53
126
838
1,073
1,322
1,914
2,081
2,339
4,264
6,194
Covered
Credit spreads
Money Market
Convertible
Govt/Corp
Emerging
Inflation
Mortgage
High Yield
Corporate
Government
Broad/Agg
December 12-month average
Equity Fixed Inc Commodity Other
Top 10 Index Providers % Market AUM $M $M $M $M $M
S&P Dow Jones 27.1% $1,721,172 $1,633,708 $55,782 $2,122 $29,560
MSCI 14.9% 943,043 939,109 295 191 3,448
FTSE Russell 11.8% 746,058 680,963 54,529 0 10,565
Bloomberg 9.4% 596,925 19 587,825 8,053 1,028
CRSP 5.8% 366,309 366,309 0 0 0
NASDAQ 3.7% 233,403 207,019 12,989 79 13,316
TSE 3.6% 230,941 230,469 0 0 472
ICE 3.4% 215,363 28,196 182,446 489 4,231
Nikkei 2.6% 168,135 161,797 0 3 6,336
Markit 2.2% 139,927 1,184 138,413 0 331
Total 84% $5,361,276 $4,248,773 $1,032,279 $10,937 $69,287
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Sources: All charts and commentary above are based on Vanguard calculations using data from ETFGI as at 31 December 2019.
For professional investors as defined under the MiFID II Directive only. In Switzerland for professional investors only. Not for Public Distribution.
US cash flow by asset class
Broad equity finishes year strongly
• Equity ETFs/ETPs experienced another strong month of inflows of $41.9B. Top equity flows went to products that
track the S&P500 ($13.5B), followed by the MSCI EM ($3.5B), the MSCI EAFE ($1.6B) and the CRSP US Total
Market Index ($1.5B).
• In the fixed income ETFs/ETPs category, the products gathering the most assets were those that track the
Bloomberg Barclays US aggregate indices ($3.6B), followed by the Bloomberg Barclays High Yield Index ($1.1B)
and the Bloomberg Barclays US MBS Index ($982M).
• US industry-wide ETF/ETP AUM increased in December to $4.3T following net inflows of $56.1B. US industry-wide
YTD flows outpaced last year’s figure ($330.2B in 2019 vs. $313.4B in 2018).
United States
-419
-181
-120
-43
60
359
361
2,327
11,872
41,933
Leveraged
Commodities
Inverse
Currency
Alternative
Mixed
Leveraged inverse
Active
Fixed income
Equity
-5,412
-699
-361
78
1,486
5,359
8,202
25,482
129,320
166,781
Leveraged
Alternative
Currency
Inverse
Mixed
Leveraged inverse
Commodities
Active
Fixed income
Equity
US cash flow by provider
Vanguard and BlackRock capture 66% of 2019 industry flows
• Vanguard added $12.7B in net flows in December to total $104.1B in YTD net flows. BlackRock (iShares)
experienced the month’s largest net flows with $20.3B to total $113.1B in YTD net flows. State Street experienced
$15.0B in monthly cash flow capturing 4% of industry flow. Schwab added $2.4B in net flows in December to total
$23.2B in YTD flows.
• In 2019, there were several significant industry developments. Some of the most notable were the SEC’s adoption
of the “ETF rule”, the trend towards commission-free trading among major brokerage platforms and the SEC’s
approval of several active non-transparent ETF structures. Looking ahead to 2020, we expect several trends to
continue, including significant flows into fixed income ETFs, growing interest in ESG-focused products, further
developments around active non-transparent ETFs and industry-wide pricing pressures.
ETF net cash flow by provider – Top 3 and bottom 3
-401
-203
-58
12,669
14,959
20,333
Direxion
FlexShares
John Hancock
Vanguard
SPDR
iShares
-2,674
-981
-736
23,249
104,002
113,093
Direxion
IndexIQ
Wisdom Tree
Schwab
Vanguard
iShares
December ($ millions) Total flows: $56.1B 2019 YTD ($ millions) Total flows: $330.2B
ETF/ETP net cash flow by asset class
December ($ millions) Total flows: $56.1B 2019 YTD ($ millions) Total flows: $330.2B
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Sources: Commentary based on Canada Vanguard ETF Industry Update, December 2019. Charts: Vanguard calculations using data from ETFGI as at 31 December 2019.
For professional investors as defined under the MiFID II Directive only. In Switzerland for professional investors only. Not for Public Distribution.
Inflows fuel record year for Canadian ETFs
• The Canadian ETF segment set a new record for annual flows as it gathered $20.9B (CAD27.1B) for the year,
breaking the previous record set in 2017. Amongst providers, BMO led the pack, bringing in $6.0B ($7.8B) in
annual net flows. Vanguard came in second with $3.8B (CAD4.9B) and First Asset rounded out the top three with
$2.5B (CAD3.2B) in net flows. ETF industry assets also grew by 31%, climbing to $156.6B (CAD203B) for 2019.
• While Canadian ETFs represent just over one-tenth the size of the $1.2T (CAD1.6T) mutual fund market, they
have continued to attract the majority of flows from investors. For a second year in a row, Canadian ETFs are on
pace to outsell mutual funds, capturing 62.5% of total investment flows as of November 2019.
• Fixed income finished 2019 as the most popular asset class, as $10.8B (CAD14.0B) poured into the category,
reaching a record high. Active fixed income brought in $5.5B (CAD7.2B) in net new assets, much of which went
into money market and similar type instruments and high-interest savings ETFs. Meanwhile, passive Canadian
fixed income ETFs were also in high demand, attracting $4.7B (CAD6.1B) in net flows, largely driven by aggregate
bond ETFs.
• Equity ETFs took in $8.5B (CAD11B) in annual inflows, led by passive US equities which received $3.3B
(CAD4.3B) for the year. Factor ETFs also garnered interest from investors as they brought in $2.6B (CAD3.4B) for
the year, concentrated primarily in low-volatility ETFs.
Canada
ETF/ETP net cash flow by asset class
December ($ millions) Total flows: $3.4B 2019 YTD ($ millions) Total flows: $20.9B
ETF net cash flow by provider – Top 3 and bottom 3
December ($ millions) Total flows: $3.4B 2019 YTD ($ millions) Total flows: $20.9B
-7
-3
-2
6
14
30
46
849
996
1,446
Leveraged inverse
Alternative
Inverse
Currency
Commodities
Mixed
Leveraged
Fixed income
Active
Equity
4
21
23
116
136
152
236
5,415
5,939
8,887
Currency
Alternative
Inverse
Commodities
Leveraged
Leveraged inverse
Mixed
Fixed income
Equity
Active
-38
-5
-4
420
518
733
First Trust
Hamilton Capital
Evolve Funds
RBC iShares
BMO AM
TD AM
-83
-44
-17
2,482
3,813
5,993
First Trust
Invesco
Auspice Capital
CI First Asset
Vanguard
BMO AM
(Note: Active category includes both active equity and active fixed income)
8
Sources: All charts and commentary above are based on Vanguard calculations using data from ETFGI as at 31 December 2019.
For professional investors as defined under the MiFID II Directive only. In Switzerland for professional investors only. Not for Public Distribution.
UK mid-caps surge on Brexit certainty
• Equity ETF/ETP flows enjoyed another strong month of inflows. The ETFs/ETPs attracting the most assets were those
benchmarked to the MSCI Emerging Markets Index ($1.6B), the S&P500 Index ($1.4B), the FTSE 250 Index ($869M)
and the MSCI World Index ($785M). The largest outflows were products benchmarked to the STOXX Europe 600
Index (-$594M) and the MSCI Saudi Arabia Index (-$355M).
• Fixed income ETFs/ETPs experienced a 34% increase in flows compared with the previous month. The largest flows
were gathered by ETFs/ETPs benchmarked to the ICE U.S. Treasury Short Bond Index ($811M), the ICE U.S.
Treasury 3-7 years Index ($379M) and the Bloomberg Barclays Euro Government Inflation-Linked Bond Index
($324M).
• Gold ETFs/ETPs in Europe gained $559M of assets in December while most of the other non-precious metals
commodities had outflows. In 2019, gold ETFs/ETPs in Europe gathered a total of $8.0B in assets. Total AUM as of
the end of December was $61.6B.
Europe
-1,015
46
85
174
323
756
3,386
8,669
51,739
61,090
Leveraged
Inverse
Currency
Alternative
Mixed
Leveraged inverse
Active
Commodities
Equity
Fixed income
-369
-83
-64
-21
1
9
315
363
5,181
15,107
Inverse
Leveraged Inverse
Leveraged
Alternative
Currency
Mixed
Active
Commodities
Fixed income
Equity
-80
-35
-6
2,435
2,616
7,317
BMO AM
BBVA AM
Nordea
UBS ETFs
Vanguard
iShares
ETF/ETP net cash flow by asset class
December ($ millions) Total flows: $20.4B 2019 YTD ($ millions) Total flows: $125.3B
ETF net cash flow by provider – Top 3 and bottom 3
December ($ millions) Total flows: $20.4B 2019 YTD ($ millions) Total flows: $125.3B
Index provider overview
-5,438
-1,145
-271
10,960
15,884
58,016
Lyxor
Deka
Swiss&Global
Invesco
UBS ETFs
iShares
Flow $M Flow $M Flow $M
Top 10 Index Providers % Market AUM $M December YTD 2019 YTD 2018
MSCI 27.9% $287,257 $7,682 $43,908 $13,448
S&P Dow Jones 15.6% 160,796 3,598 9,980 19,929
STOXX 11.5% 118,634 206 -13,559 -412
Bloomberg 11.0% 113,069 3,217 34,699 6,415
FTSE Russell 7.7% 79,160 2,362 11,528 4,535
Markit 6.9% 70,960 643 10,864 -1,393
LBMA 4.3% 44,819 421 6,776 3,734
JP Morgan 2.9% 29,529 80 8,609 2,776
ICE 2.3% 24,123 1,150 7,826 5,324
NASDAQ 1.6% 16,105 431 122 1,640
Total 92% 944,452$ 19,790$ 120,753$ 55,996$
9
Sources: All charts and commentary above are based on Vanguard calculations using data from ETFGI as at 31 December 2019.
For professional investors as defined under the MiFID II Directive only. In Switzerland for professional investors only. Not for Public Distribution.
Equity products recovered some assets lost in previous month
• Equity ETFs/ETPs that attracted the largest flows were those that track the S&P/BMV Index ($121M), the Ibovespa
Brasil Sao Paulo Stock Exchange Index ($98M) and the BM&F BOVESPA Small Cap Index ($37M).
• The currency ETFs/ETPs that had inflows were those that track the S&P/BMV MXN-USD Currency Index ($54M).
This index measures the change in the Mexican peso against the dollar.
• In 2019, Brazil-listed ETFs gathered the most assets ($2.3B), followed by Mexico ($891M) and Colombia ($402M).
Chile-listed ETFs finished the year with a net outflow of $9M.
• In AUM ranking, Brazil-listed ETFs led with $6.5B in assets, which is 47.3% of the total ETF industry’s assets,
followed by Mexico-listed ETFs with $4.8B, Colombia-listed ETFs with $2.3B and Chile-listed ETFs with $144M.
• During the year, 10 new ETFs were launched across 5 providers. As of the end of December, there were 59
ETFs/ETPs in the region across 49 providers.
Latin America
-6
0
0
0
0
0
0
2
53
143
Leveraged
Commodities
Active
Alternative
Mixed
Leveraged inverse
Fixed income
Inverse
Currency
Equity
-11
-6
0
0
0
0
0
4
872
2,735
Leveraged
Inverse
Commodities
Active
Alternative
Mixed
Leveraged inverse
Currency
Fixed income
Equity
December ($ millions) Total flows: $192M 2019 YTD ($ millions) Total flows: $3.6B
ETF net cash flow by provider – Top and bottom
Index provider overview
ETF/ETP net cash flow by asset class
December ($ millions) Total flows: $192M 2019 YTD ($ millions) Total flows: $3.6B
-118
-59
15
53
277
Itau Unibanco
Actinver
BBVA AM
Quanta Shares
iShares
144
1,347
1,818
BBVA AM
Itau Unibanco
iShares
Flow $M Flow $M Flow $M
Top 7 Index Providers % Market AUM $M December YTD 2019 YTD 2018
B3 Day 39.0% $5,390 $28 $1,441 $944
S&P Dow Jones 38.9% 5,375 161 965 1,410
BVC 13.8% 1,913 0 316 359
Anmiba 6.9% 947 0 854 0
Santiago 0.9% 131 -11 -13 63
FTSE Russell 0.4% 54 14 51 0
MSCI 0.0% 6 -1 -20 -48
Total 100% 13,816$ 191$ 3,594$ 2,728$
10
Sources: All charts and commentary above are based on Vanguard calculations using data from ETFGI as at 31 December 2019.
For professional investors as defined under the MiFID II Directive only. In Switzerland for professional investors only. Not for Public Distribution.
Korea equity continues to gather assets
• In equity ETFs/ETPs, Korea-listed products continued to attract flows. ETFs/ETPs benchmarked to the KOSPI 200
Index gathered $2.6B in assets, while products tracking the MSCI Korea Index took in $1.3B. Elsewhere, China-
listed equity ETFs/ETPs benchmarked to the CSI 300 gathered $1.2B in assets, followed by India-listed equity
products benchmarked to the Nifty Bank Index, which took in $994M in assets.
• In fixed income, Taiwan-listed products again gathered the most assets within the region. ETFs/ETPs benchmarked
to the Bloomberg Barclays US Corporate A- and Above 10+ Years Liquid Index gathered $358M in assets, followed
by the FTSE US Treasury 20+ Years Index ($346M) and the ICE U.S. Treasury Index ($221M).
• The leveraged ETFs/ETPs that lost the most assets are those that are benchmarked to the KOSPI 200 Leverage
Index (-$264M), and the CSI 300 Daily Return Leveraged 2X Index (-$119M).
Asia Pacific ex-Japan
ETF/ETP net cash flow by asset class
-539
-115
-41
-5
-3
0
93
491
2,273
11,437
Leveraged
Commodities
Active
Currency
Mixed
Alternative
Leveraged inverse
Inverse
Fixed income
Equity
-3,665
-93
0
58
299
978
1,082
2,612
22,500
30,489
Leveraged
Currency
Alternative
Mixed
Inverse
Leveraged inverse
Commodities
Active
Equity
Fixed income
-647
-221
-207
1,384
1,451
1,984
CCB
ICICI Prudential
CSOP
Samsung AM
Mirae Asset
Harvest FM
-1,297
-1,261
-1,046
3,766
4,149
5,733
Hua An FM
CCB
Bosera AM
Fubon AM
Mirae Asset
CTBC
December ($ millions) Total flows: $13.6B 2019 YTD ($ millions) Total flows: $54.3B
December ($ millions) Total flows: $13.6B 2019 YTD ($ millions) Total flows: $54.3B
ETF net cash flow by provider – Top 3 and bottom 3
Index provider overviewFlow $M Flow $M Flow $M
Top 10 Index Providers % Market AUM $M December YTD 2019 YTD 2018
CSI 25.9% $75,327 $4,772 $9,096 $19,902
Korea Exchange 10.7% 31,149 2,828 3,319 9,485
Bloomberg 10.1% 29,434 1,638 19,970 4,769
Hang Seng 8.9% 25,917 464 21 -413
S&P Dow Jones 8.5% 24,798 208 5,635 2,285
FTSE Russell 7.4% 21,613 1,406 1,278 3,185
ICE 4.1% 11,824 391 5,772 3,483
MSCI 3.9% 11,224 1,612 -74 2,747
IISL 3.6% 10,445 1,167 3,964 2,977
FnGuide 2.2% 6,265 -1,072 808 869
Total 85% 247,996$ 13,414$ 49,789$ 49,289$
11
Sources: All charts and commentary above are based on Vanguard calculations using data from ETFGI as at 31 December 2019.
For professional investors as defined under the MiFID II Directive only. In Switzerland for professional investors only. Not for Public Distribution.
JapanLocal equity finishes the year strongly
• The equity ETFs/ETPs that gathered the most assets were those benchmarked to the TOPIX ($1.4B), the Nikkei
225 Index ($945M), the TSE REIT Index ($227M) and the JPX-Nikkei Index 400 ($130M).
• In the leveraged inverse ETFs/ETPs category, products benchmarked to the Nikkei 225 Double Inverse Index
gathered the most assets ($167M).
• In December, the Bank of Japan (BoJ) purchased an additional $2B of ETFs/ETPs. As of the end of December,
the total ETF/ETP assets held by the BoJ was $260B.
• Total AUM for Japan ETFs/ETPs as of the end of December was $400B, which is 58% of the Asia Pacific region’s
total AUM. There are 19 providers offering 205 ETFs/ETPs listed across two exchanges. In 2019, 14 new ETFs
were launched by eight providers and twenty-one ETFs were closed.
December ($ millions) Total flows: $988M 2019 YTD ($ millions) Total flows: $36.7B
ETF net cash flow by provider – Top and bottom
-564
-220
-24
-14
-4
61
199
1,554
Leveraged
Inverse
Commodities
Alternative
Mixed
Fixed income
Leveraged inverse
Equity
-251
-169
-14
293
342
518
Nikko AM
Asset Mgmt One
Kokusai AM
Sumitomo Mitsui
Mitsubishi UFJ
Daiwa
December ($ millions) Total flows: $988M 2019 YTD ($ millions) Total flows: $36.7B
-5,760
-92
0
321
403
884
3,044
37,924
Leveraged
Commodities
Mixed
Alternative
Fixed income
Inverse
Leveraged inverse
Equity
Index provider overview
ETF/ETP net cash flow by asset class
-475
7,404
8,206
13,560
Asset Mgmt One
Nikko AM
Daiwa
Nomura AM
Flow $M Flow $M Flow $M
Top 10 Index Providers % Market AUM $M December YTD 2019 YTD 2018
TSE 57.1% $228,529 $1,627 $36,030 $50,377
Nikkei 41.0% 164,011 -595 -474 21,810
S&P Dow Jones 0.5% 2,025 8 862 -247
MSCI 0.4% 1,660 -4 -210 156
Nomura 0.3% 1,327 -80 104 61
FTSE Russell 0.2% 865 45 331 163
Markit 0.1% 209 8 90 75
Barclays 0.0% 186 0 24 57
UBS 0.0% 175 -11 -48 -134
IISL 0.0% 92 -2 29 -4
Total 100% 399,079$ 996$ 36,738$ 72,314$
12
Sources: All charts and commentary above are based on Vanguard calculations using data from ASX as at 31 December 2019.
For professional investors as defined under the MiFID II Directive only. In Switzerland for professional investors only. Not for Public Distribution.
2019 year in review:
• Total Australian ETF industry AUM surpassed $43.1B (AUD61.3B) in AUM in 2019.
• Australia saw record industry cash flows in 2019 with $9.6B (AUD13.7B), compared with $4.5B (AUD6.4B) in 2018
and $5.6B (AUD8.0B) in 2017.
• Vanguard AUM grew to $13.7B (AUD19.5B), the largest AUM amongst its peers. iShares came in second place with
$10.9B (AUD15.5B) in AUM, followed by Betashares with $6.3B (AUD8.9B) and State Street with $4.5B (AUD6.4B).
• 2019 was Vanguard’s strongest year on record for cash flows with $3.6B (AUD5.1B), surpassing the previous two
years’ figures of $1.9B (AUD2.7B) for 2018 and $2.0B (AUD2.9B) for 2017.
• In 2019, Vanguard gathered the most cash flows amongst ETF providers, capturing 37% of total cash flows within the
Australian ETF market.
Australia
2
11
20
32
34
44
77
173
216
237
447
Currency
Property-Global
Commodity
Cash
Infrastructure
Mixed
Property-Australia
Equity-Australia
Fixed Income-Australia
Fixed Income-Global
Equity-Global
36
41
154
177
422
448
ETFS
Magellan
VanEck Vectors
BetaShares
iShares
Vanguard
387
428
935
1,809
2,021
3,588
Magellan
ETFS
VanEck Vectors
iShares
BetaShares
Vanguard
2019 YTD ($ millions) Total flows: $9.2BDecember ($ millions) Total flows: $1.3B
December ($ millions) Total flows: $1.3B
ETF/ETP net cash flow by asset class
ETF/ETP net cash flow by provider – Top 6
13
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