global etf cash-flow report - vanguard sweden · global etf/etp net cash flow by asset class...

1

Sources: All charts and commentary above are based on Vanguard calculations using data from ETFGI as at 31 December 2019.

Note: All figures throughout this report are in US dollars unless otherwise noted.

For professional investors as defined under the MiFID II Directive only. In Switzerland for professional investors only. Not for Public Distribution.

Global ETF net cash flow

December 2018 – December 2019 ($ billions)

Global ETF assets under management (AUM)

December 2018 – December 2019 ($ trillions)

Key themes and trends

• Global equity markets rally: Both developed and emerging market equity continued to post gains in December,

closing the year on a strong note. The FTSE Developed Index posted a 3.0% return for the month, bringing its YTD

gain to 28%. The FTSE Emerging Index posted a larger monthly gain of 6.8%, finishing the year with a 20.6%

return. The main drivers of the market gains included signs that the global growth slowdown may be bottoming,

continued easing by global central banks and progress in US-China trade discussions.

• Continued demand for aggregate bonds and high-yield debt: In December, investors poured more money into

aggregate bonds, high-yield debt and emerging market debt as they moved from US Treasury holdings to riskier

assets. US Treasury indices fell slightly while the Bloomberg Barclays High Yield Bond Index gained 2.0% in the

month and the Bloomberg Barclays US Aggregate Index remained unchanged. Performance and flows were

indicative of the shift in the latter half of 2019 to a more stable macroeconomic environment with positive

manufacturing numbers and the US Federal Reserve shifting to a more neutral stance.

• Gold and oil end the year with solid gains: After taking a breather in November, gold attracted assets once

again as investors balanced out their portfolios at year end. The gold price ended December at $1,522.81 per

ounce, a 4.0% monthly gain and an 18.8% annual return. Oil also gained assets in December mainly due to

cyclical demand and news that OPEC agreed to cut production through to the end of March 2020. Oil prices gained

10.4% in December. Brent and WTI crude oil prices at the end of December were up 24% and 34% YTD

respectively.

Global ETF industry highlightsAssets: US$6.181 trillion Cash flow

December: 3.8% increase from US$5.954 trillion in November December: US$94.2 billion net inflows

YTD: 32.0% increase from US$4.684 trillion in December YTD: US$552.8 billion net inflows

73.99

14.4

45.137.7

47.0

-3.5

63.257.2

-2.9

62.8

48.4

76.2

94.2

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

4.68 5.02 5.18 5.26 5.44 5.18 5.49 5.58 5.48 5.62 5.79 5.95 6.18


Global ETF cash-flow report

Data as at 31 December 2019

David Hsu, CPA, CMA, ETF Research International

YoY

35% -86% 229% 91% 37% -109% 414% 34% -108% 20% 73% 31% 27%

MoM

27% -80% 212% -16% 25% -107% 1903% -9% -105% 2172% -23% 57% 24%


YoY

0% 1% 8% 11% 15% 7% 14% 13% 8% 10% 20% 21% 32%

MoM

-5% 7% 3% 1% 3% -5% 6% 2% -2% 2% 3% 3% 4%

2



Record month for US- and Europe-listed products

• Flows into US-listed ETFs/ETPs hit a monthly high for 2019 with $56B in flows, finishing the year with $330B

in total net new assets gathered.

• ETFs/ETPs listed in Europe also had their best month of inflows for the year with $20B in new assets. UK-

listed ETFs/ETPs gathered the most assets ($10.1B), followed by Switzerland-listed products ($4.7B),

Germany-listed products ($2.9B) and France-listed products ($2.1B). For 2019, UK-listed ETFs/ETPs

gathered the most assets ($83.4B), followed by Switzerland-listed products ($19.5B) and Germany-listed

products ($15.7B).

• In Asia ex-Japan, December flows were led by China-listed products ($4.3B), followed by Taiwan-listed

products ($2.9B) and South Korea-listed products ($2.6B). In 2019, Taiwan-listed products gathered the most

assets ($25.2B), made up predominantly of bond products, followed by China-listed ETFs/ETPs ($10.0B),

South Korea-listed ETFs/ETPs ($5.2B) and India-listed ETFs/ETPs ($5.1B). Hong Kong was the only market

in the region with ETF/ETP outflows for the year (-$1.7B) as investors reallocated their investments to other

markets within the region due to the ongoing political protests that have dampened the economy.

December 2019 ($ millions) Total flows: $94.0B

Cash-flow highlights by region

3

295

3,105

761

1,744

3,772

9,406

27,467

-764

192

988

1,262

3,375

12,329

20,441

56,148

Middle East and Africa

Latin America

Japan

Australia

Canada

Asia ex-Japan

Europe

USA

YoY ($ millions) Total YTD flows 2019: $571.0B

Total YTD flows 2018: $515.8B

-4,142

2,728

4,341

15,603

72,381

53,969

57,536

313,394

33

3,594

8,209

20,928

36,724

46,053

125,254

330,236


Latin America

Australia

Canada

Japan

Asia ex-Japan

Europe

USA

YTD 2019 YTD 2018

Global ETF/ETP net cash flow by region

Global ETF/ETP industry overview

Metrics by region Metrics by asset class

December 12-month average

Asset class #ETFs/ETPs AUM $B % Market

Equity 4,388 4,779$ 75.3%

Fix ed income 1,246 1,140$ 18.0%

Commodities 480 170$ 2.7%

Activ e 761 156$ 2.5%

Lev eraged 436 52$ 0.8%

Mix ed 98 16$ 0.2%

Others 518 34$ 0.5%

Total 7,927 6,347$ 100.0%

Structure #ETFs/ETPs AUM $B % Market

ETF 6,970 6,178$ 97.3%

ETP 957 169$ 2.7%

Total 7,927 6,347 100.0%

Region #ETFs/ETPs AUM $B % Market

USA 2,361 4,419$ 69.6%

Europe 2,198 1,031$ 16.2%

Japan 205 400$ 6.3%

Asia ex -Japan 1,405 247$ 3.9%

Canada 747 157$ 2.5%

Middle East and Africa 751 36$ 0.6%

Australia 201 43$ 0.7%

Latin America 59 14$ 0.2%

Total 7,927 6,347$ 100.0%

3





December ($ millions) Total flows: $94.0B

10,975

-239

-419

1,243

3,310

-4,623

1,013

34,919

107,290

362,341

-15,775

-303

-183

1,325

2,144

10,339

18,509

40,921

227,821

286,233

Leveraged

Currency

Alternative

Inverse

Mixed

Leveraged inverse

Commodities

Active

Fixed income

Equity

YTD 2019 YTD 2018

Global ETF/ETP net cash flow by asset class

Cash-flow highlights by asset class

Global equity in high demand

• December was a record month for equity ETFs/ETPs globally. The top flows went into ETFs/ETPs tracking US broad

equity ($17.7B), emerging markets ($5.1B) and Korea equity ($2.6B).

• Fixed income ETFs/ETPs saw their highest monthly inflows in December since June. The top fixed income

categories that attracted assets were broad/aggregate bonds as well as government, corporate and high-yield debt,

which together gathered $14.9B in assets.

• Active ETF/ETP flows slowed in the last two months after reaching a three-year high in October. The largest inflows

went to active fixed income US-listed ETFs/ETPs benchmarked to ultra-short bond indices ($413M). As of the end of

December, global active product AUM reached $156.4B.

• Leveraged inverse products dropped significantly in flows during December. US, Japan and Taiwan-listed leveraged

inverse ETFs/ETPs gathered the most assets in this category.

• Commodities ETFs/ETPs had inflows in December after experiencing their first outflows of the year last month.

Precious metals products gathered $267M in assets during the month. Energy products had the most outflows in

December (-$146M), followed by broad commodities (-$84M). In 2019, ETFs/ETPs tracking gold gathered $19.3B in

assets. Total AUM for gold ETFs/ETPs as of the end of December stood at $133.6B.

-1,295

112

-25

-16

1,543

179

862

3,405

18,090

23,697

-1,549

-228

12

22

57

393

562

3,624

20,174

70,904

Leveraged

Inverse

Currency

Alternative

Commodities

Mixed

Leveraged inverse

Active

Fixed income

Equity


4



Global fixed income breakdown

Investors pour into broad/aggregate bonds

• Broad/aggregate bond ETFs/ETPs continued to gain assets in December. The top inflows went to products

benchmarked to the Bloomberg Barclays US Aggregate Bond Index ($2.4B), the Bloomberg Barclays US Aggregate

Float Adjusted Index ($1.2B), the Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped TR

Index ($702M) and the Bloomberg Barclays US Government/Credit Float Adjusted 1-5 Years Index ($483M).

• Government bond ETFs/ETPs gathered a steady flow of assets during the month. The products attracting the most

assets were those benchmarked to the JP Morgan Government Bond Index Emerging Markets Global Index ($718M),

the ICE U.S. Treasury Short Bond Index ($492M) and the ICE U.S. Treasury Core Bond Index ($415M).

• In the corporate bond category, the ETFs/ETPs that gathered the most assets were those benchmarked to the

Bloomberg Barclays U.S. Credit Corp 5-10 years Index ($465M) and the Bloomberg Barclays U.S. Corporate A- and

above 10+ Years Liquid Index ($358M).

• High-yield bond ETFs/ETPs finished the year with $4.3B in net new assets gathered during the month. Top flows went

to products that are benchmarked to the Bloomberg Barclays VLI High Yield Index ($1.1B), the S&P/LSTA U.S.

Leveraged Loan 100 Index ($424M) and the Solactive USD High Yield Corporates Total Market Index ($373M).

• Mortgage bond ETFs/ETPs gathered more assets in December. The largest flows went to products that track the

Bloomberg Barclays US MBS Index ($982M).

Global equity breakdown

Strong demand for US equity

• December flows into ETFs/ETPs with North America equity exposure (95% US, 5% Canada) surpassed the

previous month’s flows and finished the year on a high. The total equity AUM for North America exposure has now

reached $2.8T, followed by Asia Pacific ($506B), emerging markets ($479B), global ex-US ($417B), Europe

($281B), and global ETFs/ETPs ($259B).

• Emerging market equity ETFs/ETPs flows posted their highest monthly inflows of the year as investors continued to

add to risk assets. EM equity ETFs/ETPs experienced an extremely volatile year, reaching their lowest point in

August when redemptions exceeded $10B. Over the final three months of the year, EM equity assets grew by $30B.

• ETFs/ETPs with global ex-US equity exposure also reached a YTD high in net inflows. The top flows went to ETFs

benchmarked to the MSCI EAFE Index ($2.7B), followed by the FTSE Developed ex-US All Cap Index ($1.3B) and

MSCI EAFE Small Cap Index ($504M).

Global ETF/ETP net cash flow by equity market exposure


Total YTD flows 2018: $362.3BDecember ($ millions) Total flows: $70.9B

74

2,956

-599

2,555

2,177

3,224

13,310

-204

2,112

3,066

5,386

8,218

19,241

33,084


Asia Pacific

Europe

Global

Global ex-US

Emerging

North America

-22,260

-1,077

47,253

32,225

65,970

69,826

170,405

-5,748

890

26,125

30,629

35,453

38,765

160,118

Europe


Global ex-US

Global

Asia Pacific

Emerging

North America

YTD 2019 YTD 2018December 12-month average

5



Global issuer and index provider overview

• In December, 58 new ETFs were launched by 36 providers and 62 ETFs were closed.

• Out of a total of 6,970 ETFs, 768 ETFs (approximately 11%) have over $1B in assets, while 4,273 ETFs

(approximately 61%) have less than $100M in assets.

Global ETF net cash flow by provider – Top 3 and bottom 3

December ($ millions) Total flows: $94.0B 2019 YTD ($ millions) Total flows: $571.0B

-647

-558

-401

16,143

16,229

28,579

CCB

Psagot

Direxion

Vanguard

SPDR

iShares

-5,508

-2,674

-1,322

25,559

119,295

174,516

Lyxor AM

Direxion

Psagot

SPDR

Vanguard

iShares

Global ETF/ETP net cash flow by fixed income category

December ($ millions) Total flows $20.2B

2,893

-40

273

908

184

3,199

3,742

-15,576

10,500

19,350

6,052

75,805

-1,799

28

197

533

763

2,684

13,583

19,876

20,311

54,753

57,735

59,133

Govt/Corp

Credit spreads

Covered

Money Market

Convertible

Inflation

Mortgage

High Yield

Emerging

Broad/Agg

Corporate

Government

YTD 2019 YTD 2018



-157

2

45

64

-150

1,702

222

1,132

1,656

4,305

4,755

4,510

-59

5

53

126

838

1,073

1,322

1,914

2,081

2,339

4,264

6,194

Covered

Credit spreads

Money Market

Convertible

Govt/Corp

Emerging

Inflation

Mortgage

High Yield

Corporate

Government

Broad/Agg


Equity Fixed Inc Commodity Other

Top 10 Index Providers % Market AUM $M $M $M $M $M

S&P Dow Jones 27.1% $1,721,172 $1,633,708 $55,782 $2,122 $29,560

MSCI 14.9% 943,043 939,109 295 191 3,448

FTSE Russell 11.8% 746,058 680,963 54,529 0 10,565

Bloomberg 9.4% 596,925 19 587,825 8,053 1,028

CRSP 5.8% 366,309 366,309 0 0 0

NASDAQ 3.7% 233,403 207,019 12,989 79 13,316

TSE 3.6% 230,941 230,469 0 0 472

ICE 3.4% 215,363 28,196 182,446 489 4,231

Nikkei 2.6% 168,135 161,797 0 3 6,336

Markit 2.2% 139,927 1,184 138,413 0 331

Total 84% $5,361,276 $4,248,773 $1,032,279 $10,937 $69,287

6



US cash flow by asset class

Broad equity finishes year strongly

• Equity ETFs/ETPs experienced another strong month of inflows of $41.9B. Top equity flows went to products that

track the S&P500 ($13.5B), followed by the MSCI EM ($3.5B), the MSCI EAFE ($1.6B) and the CRSP US Total

Market Index ($1.5B).

• In the fixed income ETFs/ETPs category, the products gathering the most assets were those that track the

Bloomberg Barclays US aggregate indices ($3.6B), followed by the Bloomberg Barclays High Yield Index ($1.1B)

and the Bloomberg Barclays US MBS Index ($982M).

• US industry-wide ETF/ETP AUM increased in December to $4.3T following net inflows of $56.1B. US industry-wide

YTD flows outpaced last year’s figure ($330.2B in 2019 vs. $313.4B in 2018).

United States

-419

-181

-120

-43

60

359

361

2,327

11,872

41,933

Leveraged

Commodities

Inverse

Currency

Alternative

Mixed

Leveraged inverse

Active

Fixed income

Equity

-5,412

-699

-361

78

1,486

5,359

8,202

25,482

129,320

166,781

Leveraged

Alternative

Currency

Inverse

Mixed

Leveraged inverse

Commodities

Active

Fixed income

Equity

US cash flow by provider

Vanguard and BlackRock capture 66% of 2019 industry flows

• Vanguard added $12.7B in net flows in December to total $104.1B in YTD net flows. BlackRock (iShares)

experienced the month’s largest net flows with $20.3B to total $113.1B in YTD net flows. State Street experienced

$15.0B in monthly cash flow capturing 4% of industry flow. Schwab added $2.4B in net flows in December to total

$23.2B in YTD flows.

• In 2019, there were several significant industry developments. Some of the most notable were the SEC’s adoption

of the “ETF rule”, the trend towards commission-free trading among major brokerage platforms and the SEC’s

approval of several active non-transparent ETF structures. Looking ahead to 2020, we expect several trends to

continue, including significant flows into fixed income ETFs, growing interest in ESG-focused products, further

developments around active non-transparent ETFs and industry-wide pricing pressures.

ETF net cash flow by provider – Top 3 and bottom 3

-401

-203

-58

12,669

14,959

20,333

Direxion

FlexShares

John Hancock

Vanguard

SPDR

iShares

-2,674

-981

-736

23,249

104,002

113,093

Direxion

IndexIQ

Wisdom Tree

Schwab

Vanguard

iShares


ETF/ETP net cash flow by asset class


7

Sources: Commentary based on Canada Vanguard ETF Industry Update, December 2019. Charts: Vanguard calculations using data from ETFGI as at 31 December 2019.


Inflows fuel record year for Canadian ETFs

• The Canadian ETF segment set a new record for annual flows as it gathered $20.9B (CAD27.1B) for the year,

breaking the previous record set in 2017. Amongst providers, BMO led the pack, bringing in $6.0B ($7.8B) in

annual net flows. Vanguard came in second with $3.8B (CAD4.9B) and First Asset rounded out the top three with

$2.5B (CAD3.2B) in net flows. ETF industry assets also grew by 31%, climbing to $156.6B (CAD203B) for 2019.

• While Canadian ETFs represent just over one-tenth the size of the $1.2T (CAD1.6T) mutual fund market, they

have continued to attract the majority of flows from investors. For a second year in a row, Canadian ETFs are on

pace to outsell mutual funds, capturing 62.5% of total investment flows as of November 2019.

• Fixed income finished 2019 as the most popular asset class, as $10.8B (CAD14.0B) poured into the category,

reaching a record high. Active fixed income brought in $5.5B (CAD7.2B) in net new assets, much of which went

into money market and similar type instruments and high-interest savings ETFs. Meanwhile, passive Canadian

fixed income ETFs were also in high demand, attracting $4.7B (CAD6.1B) in net flows, largely driven by aggregate

bond ETFs.

• Equity ETFs took in $8.5B (CAD11B) in annual inflows, led by passive US equities which received $3.3B

(CAD4.3B) for the year. Factor ETFs also garnered interest from investors as they brought in $2.6B (CAD3.4B) for

the year, concentrated primarily in low-volatility ETFs.

Canada





-7

-3

-2

6

14

30

46

849

996

1,446

Leveraged inverse

Alternative

Inverse

Currency

Commodities

Mixed

Leveraged

Fixed income

Active

Equity

4

21

23

116

136

152

236

5,415

5,939

8,887

Currency

Alternative

Inverse

Commodities

Leveraged

Leveraged inverse

Mixed

Fixed income

Equity

Active

-38

-5

-4

420

518

733

First Trust

Hamilton Capital

Evolve Funds

RBC iShares

BMO AM

TD AM

-83

-44

-17

2,482

3,813

5,993

First Trust

Invesco

Auspice Capital

CI First Asset

Vanguard

BMO AM

(Note: Active category includes both active equity and active fixed income)

8



UK mid-caps surge on Brexit certainty

• Equity ETF/ETP flows enjoyed another strong month of inflows. The ETFs/ETPs attracting the most assets were those

benchmarked to the MSCI Emerging Markets Index ($1.6B), the S&P500 Index ($1.4B), the FTSE 250 Index ($869M)

and the MSCI World Index ($785M). The largest outflows were products benchmarked to the STOXX Europe 600

Index (-$594M) and the MSCI Saudi Arabia Index (-$355M).

• Fixed income ETFs/ETPs experienced a 34% increase in flows compared with the previous month. The largest flows

were gathered by ETFs/ETPs benchmarked to the ICE U.S. Treasury Short Bond Index ($811M), the ICE U.S.

Treasury 3-7 years Index ($379M) and the Bloomberg Barclays Euro Government Inflation-Linked Bond Index

($324M).

• Gold ETFs/ETPs in Europe gained $559M of assets in December while most of the other non-precious metals

commodities had outflows. In 2019, gold ETFs/ETPs in Europe gathered a total of $8.0B in assets. Total AUM as of

the end of December was $61.6B.

Europe

-1,015

46

85

174

323

756

3,386

8,669

51,739

61,090

Leveraged

Inverse

Currency

Alternative

Mixed

Leveraged inverse

Active

Commodities

Equity

Fixed income

-369

-83

-64

-21

1

9

315

363

5,181

15,107

Inverse

Leveraged Inverse

Leveraged

Alternative

Currency

Mixed

Active

Commodities

Fixed income

Equity

-80

-35

-6

2,435

2,616

7,317

BMO AM

BBVA AM

Nordea

UBS ETFs

Vanguard

iShares





Index provider overview

-5,438

-1,145

-271

10,960

15,884

58,016

Lyxor

Deka

Swiss&Global

Invesco

UBS ETFs

iShares

Flow $M Flow $M Flow $M

Top 10 Index Providers % Market AUM $M December YTD 2019 YTD 2018

MSCI 27.9% $287,257 $7,682 $43,908 $13,448

S&P Dow Jones 15.6% 160,796 3,598 9,980 19,929

STOXX 11.5% 118,634 206 -13,559 -412

Bloomberg 11.0% 113,069 3,217 34,699 6,415

FTSE Russell 7.7% 79,160 2,362 11,528 4,535

Markit 6.9% 70,960 643 10,864 -1,393

LBMA 4.3% 44,819 421 6,776 3,734

JP Morgan 2.9% 29,529 80 8,609 2,776

ICE 2.3% 24,123 1,150 7,826 5,324

NASDAQ 1.6% 16,105 431 122 1,640

Total 92% 944,452$ 19,790$ 120,753$ 55,996$

9



Equity products recovered some assets lost in previous month

• Equity ETFs/ETPs that attracted the largest flows were those that track the S&P/BMV Index ($121M), the Ibovespa

Brasil Sao Paulo Stock Exchange Index ($98M) and the BM&F BOVESPA Small Cap Index ($37M).

• The currency ETFs/ETPs that had inflows were those that track the S&P/BMV MXN-USD Currency Index ($54M).

This index measures the change in the Mexican peso against the dollar.

• In 2019, Brazil-listed ETFs gathered the most assets ($2.3B), followed by Mexico ($891M) and Colombia ($402M).

Chile-listed ETFs finished the year with a net outflow of $9M.

• In AUM ranking, Brazil-listed ETFs led with $6.5B in assets, which is 47.3% of the total ETF industry’s assets,

followed by Mexico-listed ETFs with $4.8B, Colombia-listed ETFs with $2.3B and Chile-listed ETFs with $144M.

• During the year, 10 new ETFs were launched across 5 providers. As of the end of December, there were 59

ETFs/ETPs in the region across 49 providers.

Latin America

-6

0

0

0

0

0

0

2

53

143

Leveraged

Commodities

Active

Alternative

Mixed

Leveraged inverse

Fixed income

Inverse

Currency

Equity

-11

-6

0

0

0

0

0

4

872

2,735

Leveraged

Inverse

Commodities

Active

Alternative

Mixed

Leveraged inverse

Currency

Fixed income

Equity

December ($ millions) Total flows: $192M 2019 YTD ($ millions) Total flows: $3.6B

ETF net cash flow by provider – Top and bottom




-118

-59

15

53

277

Itau Unibanco

Actinver

BBVA AM

Quanta Shares

iShares

144

1,347

1,818

BBVA AM

Itau Unibanco

iShares



B3 Day 39.0% $5,390 $28 $1,441 $944

S&P Dow Jones 38.9% 5,375 161 965 1,410

BVC 13.8% 1,913 0 316 359

Anmiba 6.9% 947 0 854 0

Santiago 0.9% 131 -11 -13 63

FTSE Russell 0.4% 54 14 51 0

MSCI 0.0% 6 -1 -20 -48

Total 100% 13,816$ 191$ 3,594$ 2,728$

10



Korea equity continues to gather assets

• In equity ETFs/ETPs, Korea-listed products continued to attract flows. ETFs/ETPs benchmarked to the KOSPI 200

Index gathered $2.6B in assets, while products tracking the MSCI Korea Index took in $1.3B. Elsewhere, China-

listed equity ETFs/ETPs benchmarked to the CSI 300 gathered $1.2B in assets, followed by India-listed equity

products benchmarked to the Nifty Bank Index, which took in $994M in assets.

• In fixed income, Taiwan-listed products again gathered the most assets within the region. ETFs/ETPs benchmarked

to the Bloomberg Barclays US Corporate A- and Above 10+ Years Liquid Index gathered $358M in assets, followed

by the FTSE US Treasury 20+ Years Index ($346M) and the ICE U.S. Treasury Index ($221M).

• The leveraged ETFs/ETPs that lost the most assets are those that are benchmarked to the KOSPI 200 Leverage

Index (-$264M), and the CSI 300 Daily Return Leveraged 2X Index (-$119M).

Asia Pacific ex-Japan


-539

-115

-41

-5

-3

0

93

491

2,273

11,437

Leveraged

Commodities

Active

Currency

Mixed

Alternative

Leveraged inverse

Inverse

Fixed income

Equity

-3,665

-93

0

58

299

978

1,082

2,612

22,500

30,489

Leveraged

Currency

Alternative

Mixed

Inverse

Leveraged inverse

Commodities

Active

Equity

Fixed income

-647

-221

-207

1,384

1,451

1,984

CCB

ICICI Prudential

CSOP

Samsung AM

Mirae Asset

Harvest FM

-1,297

-1,261

-1,046

3,766

4,149

5,733

Hua An FM

CCB

Bosera AM

Fubon AM

Mirae Asset

CTBC




Index provider overviewFlow $M Flow $M Flow $M


CSI 25.9% $75,327 $4,772 $9,096 $19,902

Korea Exchange 10.7% 31,149 2,828 3,319 9,485

Bloomberg 10.1% 29,434 1,638 19,970 4,769

Hang Seng 8.9% 25,917 464 21 -413

S&P Dow Jones 8.5% 24,798 208 5,635 2,285

FTSE Russell 7.4% 21,613 1,406 1,278 3,185

ICE 4.1% 11,824 391 5,772 3,483

MSCI 3.9% 11,224 1,612 -74 2,747

IISL 3.6% 10,445 1,167 3,964 2,977

FnGuide 2.2% 6,265 -1,072 808 869

Total 85% 247,996$ 13,414$ 49,789$ 49,289$

11



JapanLocal equity finishes the year strongly

• The equity ETFs/ETPs that gathered the most assets were those benchmarked to the TOPIX ($1.4B), the Nikkei

225 Index ($945M), the TSE REIT Index ($227M) and the JPX-Nikkei Index 400 ($130M).

• In the leveraged inverse ETFs/ETPs category, products benchmarked to the Nikkei 225 Double Inverse Index

gathered the most assets ($167M).

• In December, the Bank of Japan (BoJ) purchased an additional $2B of ETFs/ETPs. As of the end of December,

the total ETF/ETP assets held by the BoJ was $260B.

• Total AUM for Japan ETFs/ETPs as of the end of December was $400B, which is 58% of the Asia Pacific region’s

total AUM. There are 19 providers offering 205 ETFs/ETPs listed across two exchanges. In 2019, 14 new ETFs

were launched by eight providers and twenty-one ETFs were closed.


ETF net cash flow by provider – Top and bottom

-564

-220

-24

-14

-4

61

199

1,554

Leveraged

Inverse

Commodities

Alternative

Mixed

Fixed income

Leveraged inverse

Equity

-251

-169

-14

293

342

518

Nikko AM

Asset Mgmt One

Kokusai AM

Sumitomo Mitsui

Mitsubishi UFJ

Daiwa


-5,760

-92

0

321

403

884

3,044

37,924

Leveraged

Commodities

Mixed

Alternative

Fixed income

Inverse

Leveraged inverse

Equity



-475

7,404

8,206

13,560

Asset Mgmt One

Nikko AM

Daiwa

Nomura AM



TSE 57.1% $228,529 $1,627 $36,030 $50,377

Nikkei 41.0% 164,011 -595 -474 21,810

S&P Dow Jones 0.5% 2,025 8 862 -247

MSCI 0.4% 1,660 -4 -210 156

Nomura 0.3% 1,327 -80 104 61

FTSE Russell 0.2% 865 45 331 163

Markit 0.1% 209 8 90 75

Barclays 0.0% 186 0 24 57

UBS 0.0% 175 -11 -48 -134

IISL 0.0% 92 -2 29 -4

Total 100% 399,079$ 996$ 36,738$ 72,314$

12

Sources: All charts and commentary above are based on Vanguard calculations using data from ASX as at 31 December 2019.


2019 year in review:

• Total Australian ETF industry AUM surpassed $43.1B (AUD61.3B) in AUM in 2019.

• Australia saw record industry cash flows in 2019 with $9.6B (AUD13.7B), compared with $4.5B (AUD6.4B) in 2018

and $5.6B (AUD8.0B) in 2017.

• Vanguard AUM grew to $13.7B (AUD19.5B), the largest AUM amongst its peers. iShares came in second place with

$10.9B (AUD15.5B) in AUM, followed by Betashares with $6.3B (AUD8.9B) and State Street with $4.5B (AUD6.4B).

• 2019 was Vanguard’s strongest year on record for cash flows with $3.6B (AUD5.1B), surpassing the previous two

years’ figures of $1.9B (AUD2.7B) for 2018 and $2.0B (AUD2.9B) for 2017.

• In 2019, Vanguard gathered the most cash flows amongst ETF providers, capturing 37% of total cash flows within the

Australian ETF market.

Australia

2

11

20

32

34

44

77

173

216

237

447

Currency

Property-Global

Commodity

Cash

Infrastructure

Mixed

Property-Australia

Equity-Australia

Fixed Income-Australia

Fixed Income-Global

Equity-Global

36

41

154

177

422

448

ETFS

Magellan

VanEck Vectors

BetaShares

iShares

Vanguard

387

428

935

1,809

2,021

3,588

Magellan

ETFS

VanEck Vectors

iShares

BetaShares

Vanguard

2019 YTD ($ millions) Total flows: $9.2BDecember ($ millions) Total flows: $1.3B

December ($ millions) Total flows: $1.3B


ETF/ETP net cash flow by provider – Top 6

13

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