Economics

Leveraged ETFs/ETPs Gathered US$77 Billion At The End Of September

ETFGI reports assets invested in leveraged/inverse ETFs/ETPs listed globally have increased 14.1% in 2017 to reach a new record of US$77 Bn at the end of September

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LONDON — November 9, 2017 — ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in leveraged/inverse ETFs/ETPs listed globally have increase 14.1% in the first 9 months of the year to reach a new record of US$77.14 Bn at the end of September, according to ETFGI’s September 2017 Global Leverage and Inverse ETFs and ETPs Landscape report.

The leveraged/inverse ETF/ETP industry had 834 ETFs/ETPs, with 1,287 listings, assets of US$77.14 Bn, from 59 providers on 19 exchanges in 16 countries.

Of these 834 ETFs/ETPs, 419 were leveraged products, with assets of US$43.56 Bn while 228 were inverse listings, with assets of US$16.55 Bn and 187 were leveraged inverse with assets of US$17.03 Bn.

Leveraged/inverse ETFs and ETPs gathered US$4.69 Bn in year to date net inflows with leveraged products suffering US$1.01 Bn in year to date net outflows, inverse ETFs/ETPs experiencing US$1.89 Bn in year to date net inflows and finally leveraged inverse gathering US$3.81 Bn in year to date net inflows.

“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.

ProShares is the largest leveraged/inverse ETF/ETP provider in terms of assets with US$23.82 Bn; Direxion is second with US$11.01 Bn, followed by Lyxor AM with US$4.81 Bn and Nomura AM with US$4.71 Bn.