ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in ETFs and ETPs listed in Asia Pacific (ex-Japan) increased by 31.4% during 2017 to reach a new high of US$170.26 Bn at the end of December. (All dollar values in USD unless otherwise noted.)

Highlights

• Assets invested in ETFs/ETPs listed in Asia Pacific (ex-Japan) increased by a record $40.24 billion during the year, to reach a new high of $170.26 billion.
• According to ETFGI’s December 2017 Asia Pacific (ex-Japan) ETF and ETP industry insights report, an annual paid-for research subscription service, assets invested in ETFs and ETPs listed in Asia Pacific (ex-Japan) grew by $40.24 Bn YTD.
•  Year-to-date, through end of December 2017, ETFs and ETPs listed in Asia Pacific (ex-Japan) saw net inflows of $6.54 Bn.

According to ETFGI’s December 2017 Asia Pacific (ex-Japan) ETF and ETP industry insights report, an annual paid-for research subscription service, assets invested in ETFs/ETPs listed in Asia Pacific (ex-Japan) grew by a record US$40.24 Bn during 2017, over double the previous record of US$12.50 Bn set in 2016. The increase of 31.4%, from US$129.61 Bn at the end of 2016, also represents the greatest growth in assets since 2009 when markets recovered following the 2008 financial crisis.


This record was achieved on the eve of another milestone for the ETF industry: the 25th anniversary of the listing of the first ETF in the US, the venerable SPDR S&P 500 ETF (SPY US), on 22nd January 1993. At the end of 2017, SPY on its own accounted for assets of US$271.39 Bn.

During 2017 ETFs/ETPs listed in Asia Pacific (ex-Japan) saw net inflows of US$6.54 Bn; 45.8% less than net inflows for 2016. December 2017 also marked the 2nd consecutive month of net inflows into ETFs/ETPs listed in Asia Pacific (ex-Japan), with US$2.75 Bn gathered during the month.

The majority of these flows can be attributed to the top 20 ETFs by net new assets, which collectively gathered US$11.94 Bn during 2017. The BHARAT 22 ETF (BHART22 IN) on its own accounted for net inflows of US$1.40 Bn.

Top 20 ETFs by net new assets: Asia Pacific (ex-Japan)

Similarly, the top 10 ETPs by net new assets collectively gathered US$365.00 Mn year-to-date during 2017.

Top 10 ETPs by net new assets: Asia Pacific (ex-Japan)

Equity ETFs/ETPs listed in Asia Pacific (ex-Japan) saw net inflows of US$4.00 Bn in December, growing net inflows for 2017 to US$5.08 Bn. Fixed Income ETFs and ETPs experienced net outflows of US$1.38 Bn in December, bringing net outflows for 2017 to US$1.18 Bn.

To conclude, investors have tended to invest in lower cost and core ETFs in 2017 with the BHARAT 22 ETF (BHART22 IN ) accumulating net inflows of US$1.40 Bn and a TER of 0.95bp.