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.
Hong Kong -- 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.
Report highlights:
- Global ETF Growth: In 2023, ETF assets surged to a remarkable $11 trillion, showcasing a pattern of sustained growth. In APAC, there was a substantial asset rebound compared to 2022; however, net flows have consistently declined since 2020.
- Active ETF Momentum: In North America, active ETF strategies secured 25% of the flows in 2023, bringing total category’s assets in the region to $630 billion. In contrast, Europe, where interest is slowly growing, lags significantly with only $32 billion in assets, emphasizing investors' ongoing preference for passive strategies. Meanwhile, in APAC, active ETFs witnessed a revival in interest after two years of weaker demand.
- 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 a dry 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. Meanwhile, APAC has a minuscule presence in the crypto space, with only a handful of ETFs available in the market.
- 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. In contrast, the U.S. experiences a widening gap due to across-the-aisle pushback. In APAC, investors added over $1 billion to the ESG category, although notably lower than the previous two years.
- Fixed Income Revival: For the fourth consecutive year, North America witnessed net flows into fixed income ETFs surpassing $200 billion, driving the total assets in the region to exceed $1.5 trillion. 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. In APAC, interest surged significantly, resulting in increased flows compared to the previous year and expanding the total assets in that category. This resurgence across regions has contributed to global fixed income assets reaching a historic milestone of $2 trillion.
- 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.”
“ETF adoption continues to increase globally and across APAC, as investors become more comfortable with the transparency, daily liquidity, and attractive fee proposition. APAC is expected to see even stronger ETF asset growth momentum compared with other regions, with a growth rate of ~20% (vs ~15% for global)1,” said Philippe El-Asmar, APAC Head of ETF, Digital & Direct, J.P. Morgan Asset Management. “APAC investors are progressively evolving from passive to factor-based and strategy-based ETFs, ultimately to actively managed ETFs. As a pioneer in active ETFs, we look forward to leading the active revolution in the ETF industry by delivering our world-class active capabilities in the ETF wrapper.”
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.
About Trackinsight:
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.
1 Source: J.P. Morgan Asset Management, as of 31 December 2023
Media Contacts details
Trackinsight:
Julien Scatena, julien.scatena@trackinsight.com
J.P. Morgan Asset Management:
Kathleen Wang, kathleen.w.wang@jpmorgan.com
State Street:
Brendan Paul, bpaul2@statestreet.com
