ETFs soared - Global ETF FlowWatch - June 2019 Results

In June, worldwide ETFs soared with US$57 billion in net flows amid broad recovery in the market and expectations of a potential near-term interest rate cut. Bond ETFs led with US$37 billion in net new money, followed by equity ETFs which accumulated nearly US$15 billion. Commodity ETF products also gathered US$5 billion in net subscriptions. ETF assets surged to a record high of US$5.632 trillion as of June 2019.

In the U.S., bond ETFs amassed US$26 billion of net flows, more than tripling the amount of the month prior, with Bond North America alone contributing nearly US$17 billion. Equity ETFs recorded almost US$12 billion, while commodity ETF products took in US$2 billion in net new cash.

ETFs in Europe attracted US$4 billion of inflows, mainly driven by bond products garnering US$6 billion in net flows. European commodity ETFs added a modest US$3 billion in net new cash. Meanwhile, European equity ETFs experienced net redemptions of nearly US$5 billion. ETFs in Asia surged with US$13 billion in new investor money, primarily driven by Equity Japan accumulating around US$7 billion. Asian commodity ETF products, however, stayed flat.

Vanguard Global Aggregate Bond ETF USD Hgd Acc was the largest new ETF launch in June 2019, accumulating US$264 million in net new money. The ETF is traded on the London Stock Exchange and is domiciled in Ireland. The ETF tracks the Bloomberg Barclays Global Aggregate Float Adjusted and Scaled Index Hedged benchmark.