Trackinsight, in Partnership with J.P. Morgan Asset Management and State Street, Unveils the Global ETF Survey 2024 Report ‘50+ Charts of Worldwide ETF Trends’. A Comprehensive Overview of Worldwide ETF Trends Highlighting Industry Innovations and Growth Opportunities.
Paris, France -- Feb 7th, 2024 -- Trackinsight, a global leader in ETF research and analytics, today announced the release of its Global ETF Survey 2024 Report: ‘50+ Charts on Worldwide ETF Trends’, in partnership with J.P. Morgan Asset Management and State Street.
The fifth annual survey report, now freely available on trackinsight.com, provides a comprehensive analysis of the ETF industry, covering trends, growth, and innovation. It leverages Trackinsight's global database of over 10,000 ETPs and features insights from more than 500 investment professionals managing ETF assets exceeding $900 billion.
- Global ETF Growth: The year 2023 saw ETF assets soar to $11 trillion, showcasing continuous expansion. Europe's assets increased by almost $400 billion, edging closer to the $2 trillion milestone.
- Active ETF Momentum: In North America, active ETF strategies captured 25% of 2023 flows, bringing the category’s total assets in the region to $630 billion – a new record. In contrast, Europe, where interest is slowly growing, lags significantly with only $32 billion in assets, emphasizing investors' ongoing preference for passive strategies.
- Thematic Investments: Global interest in thematic investing in 2023 continues to be subdued when compared to the levels seen during the pandemic years. AI, Robotics, and Automation themes take the global spotlight with $3.6 billion in inflows in the U.S. and Europe, while the Nuclear Energy theme sees a surge in the U.S. with $1 billion in new capital. Europe's commitment to Net Zero 2050 and Climate Change themes remains strong with over $10 billion in new inflows.
- Cryptocurrency Breakthrough: In 2023, global interest in cryptocurrency ETPs rejuvenated amid U.S. Spot Bitcoin ETFs approval rumors, attracting over $1.5 billion in North America and more than $1 billion in Europe, marking the end of crypto winter. Recently, the U.S. overtook Europe and Canada in the crypto asset arena following a bulk approval and launch of Spot Bitcoin ETFs on U.S. exchanges.
- ESG Cross-Atlantic Polarity: In 2023, Europe reaffirms its global leadership in the ESG market, injecting an impressive $50 billion into ESG ETFs. Europe now commands a remarkable 75% share of the global $550 billion ESG ETF assets, reaching an all-time high. Conversely, the United States faces a growing gap, primarily due to political pushback across party lines.
- Fixed Income Revival: The fixed income asset class witnessed a revival in 2023, propelling its global ETF assets to the $2 trillion threshold. In Europe, there were $66 billion in inflows, double the amount from the previous year, bringing the region's total assets closer to the half-trillion-dollar mark.
- Insights from the Survey Respondents: Investors are strategically expanding their allocations to diverse asset classes via ETFs, with a pronounced focus on equity and fixed income. European investors continue to prioritize ESG investing, and interest in active management is widespread across different regions. Thematic investing appetite is present but in a minor satellite exposure capacity, while caution prevails when it comes to cryptocurrencies.
Philippe Malaise, CEO of Trackinsight, commented, "This year's Global ETF Survey underscores the vibrant expansion and the transformative potential of the ETF industry. Our collaboration with J.P. Morgan and State Street has enabled us to present a report that not only captures the current state of the market but also offers forward-looking insights that will benefit investors and industry stakeholders alike. The findings highlight the adaptability of ETFs to market changes and investor needs, reinforcing their essential role in contemporary investment strategies."
“We coined the phrase ETF 3.0 several years ago, as a description of the exponential growth we expected to see for active ETFs globally. The 2024 survey results echo our predictions,” said Francis Koudelka, Senior Vice President & Global ETF Product Specialist at State Street. “Global investors are telling us they are allocating more to active ETFs, would be more apt to purchase a strategy if it was converted from a mutual fund to ETF, and would like to see global regulators enable a listed ETF as a share class of an unlisted fund. We remain bullish on the growth of active ETFs globally.”
Travis Spence, Head of ETF Distribution in EMEA at J.P. Morgan Asset Management, said: “ETFs remain one of the fastest growing parts of the asset management industry and with nearly 80% of ETF buyers in EMEA planning to increase their allocation to active ETFs in the next couple of years, we believe the future of ETFs is active. Not only are we seeing existing ETF buyers starting to rotate into active ETFs, we’re also starting to see users of traditional active management increasingly embracing the ETF wrapper, alongside mutual funds. We’re also seeing increasing interest in active fixed income ETFs which can allocate towards higher-quality issuers and away from those issuers at risk of downgrades. Active management can produce better investment outcomes, particularly when it comes to sustainable investing, where fundamental active research can take into account financially materially factors, combined with engagement.”
In addition to the full report, Trackinsight and its partners are delighted to offer additional content with thought leadership articles and weekly updated industry league tables, freely accessible from trackinsight.com, enabling everyone to gain valuable insights into the ETF market. For more information on the 2024 Global ETF Survey, please visit trackinsight.com.
Trackinsight is a leading platform for ETP selection and analysis, offering investors a range of tools to assess and compare ETPs listed globally. With over 10,000 ETPs covered, Trackinsight provides detailed information on each fund, including holdings, fees, performance, and risk characteristics. The platform is used by institutional investors, financial advisors, and private investors to make informed investment decisions.
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