Worldwide ETFs surged in July 2016, amassing the largest inflows of the year to the tune of US$56 billion amid broad recovery in the market. Equity ETFs recorded US$35 billion in net new money, followed by bond and commodity (mostly gold ETFs) products collecting US$15 billion and US$6 billion, respectively. ETFs achieved nearly US$3.3 trillion in assets globally.
In the U.S., equity ETFs recorded US$31 billion of inflows, while bond products accumulated US$9 billion in net new cash. Equity US – Large Cap led with US$23 billion of inflows. SPDR S&P 500 ETF, a product that tracks the S&P 500, alone accounted for US$11 billion in net new money.
ETFs in Europe garnered almost US$11 billion of inflows, mainly driven by bond products. European equity products only saw a modest US$2 billion in net flows. ETFs in Asia stood firm collecting US$2 billion in net flows mostly from equity and bond related products.
China Universal CSI Shanghai SOEs Index ETF Fund in China was the largest ETF new launch in July, accumulating US$2.2 billion in net flows. The product is developed by China Universal and consists of state-owned enterprises (SOEs) based in Shanghai.