Worldwide ETFs recorded US$35 billion in net flows during July 2018. Equity ETFs led with US$24 billion in net new money, followed by bond ETFs accumulating US$12 billion in net flows. Meanwhile, commodity ETF products experienced net redemptions of nearly US$400 million. ETF assets climbed to US$5.1 trillion globally.
In the U.S., equity ETF products garnered US$17 billion of net flows, led by Equity US – Large Cap and Equity US – Mid/Small Cap, totalling nearly US$10 billion together. Bond products gathered $9 billion in net new cash, while commodity ETFs experienced marginal outflows of almost US$200 million.
In Europe, total ETF assets grew by US$4 billion, bringing total ETF assets to US$825 billion as of July 2018 in the region. In Asia, Equity Japan was the best-selling category and amassed US$5.6 billion in net flows, while Equity India and Equity Taiwan ETF products experienced net redemptions of nearly US$400 million and US$600 million, respectively. As a result, total ETF assets in Asia grew by US$4.4 billion in net new cash.
CSOP Hong Kong Dollar Money Market ETF HKD was the largest ETF new launch in July, attracting US$129 million in net flows. The ETF adopts a passive tracking strategy to provide return that follows the 3-month “HIBOR” calculated by “HKAB” (the benchmark). The ETF invests in Hong Kong Dollar-denominated and settled short-term deposits, money-market instruments and debt securities.