Global Currency Hedged ETFs/ETPs Hit Record $134B At The End Of September

ETFGI reports assets invested in Currency Hedged ETFs/ETPs listed globally have increased 33.5% in 2017 to reach a new record of US$134billion at the end of September

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LONDON — October 20, 2017 — ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in currency hedged ETFs/ETPs listed globally have increase 33.5% in the first 9 months of the year to reach a new record of US$133.79Bn at the end of September, according to ETFGI’s Global Currency Hedged ETFs and ETPs Landscape report service.

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Record levels of assets were reached at the end of September for currency hedged ETFs/ETPs listed globally with US$133.79Bn, in the United States with US$48.37 Bn, in Europe with US$58.90Bn, in Canada with US$21.37Bn and in Asia Pacific (ex-Japan) with US$3.42 Bn.

In September 2017, currency hedged ETFs/ETPs suffered US$273 Mn in net outflows but have gathered US$17.11Bn in year to date net inflows compared to US$13.47Bn in net outflows at this point last year. Combining market moves and net inflows, currency hedged ETF/ETP assets have increased by 33.5% from US$100.18 Bn to US$133.79 Bn.

At the end of September 2017, there were 771 currency hedged ETFs/ETPs, with 1,266 listings, assets of US$133.79Bn, from 71 providers listed on 26 exchanges in 20 countries.

At the end of September, there were currency hedged ETFs/ETPs hedged against 15 different currencies with the most assets tracking exposures hedged against the US Dollar with assets of US$55.13 Bn and US$2.11Bn net inflows YTD.

“The US market typically has performed poorest during the month of September. This year the S&P 500 was up 2.06% in September and is up 14.24% year to date. The S&P 500 Value outperformed S&P 500 Growth up 3.28% and 1.11% respectively, furthering the perception of stronger economic fundamentals. Energy and Financials were September's top performing sectors, up 9.94% and 5.14%, respectively. The S&P Developed Ex-U.S. BMI gained 2.57% in September and is up 20.76% year to date. Emerging markets declined 0.55% in September due to headwinds including a rising dollar but is up 26.95% year to date. The uncertainty of Brexit negotiations and North Korea are still areas of concern for investors.” According to Deborah Fuhr, Managing Partner and co-founder of ETFGI.

Xtrackers gathered the largest net inflows from currency hedged ETFs/ETPs in September with US$431 Mn, followed by Vanguard with US$217 Mn and BNP Paribas Easy with US$118 Mn net inflows.

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