The year-over-year growth numbers for US exchange-traded funds (ETFs) are up approximately 19%, but their average daily volumes (ADV) has fallen 15% over the same period, according to recent finding published by Société Générale.
Equities- and fixed income-based ETFs saw significant growth in the past year in terms of assets, outstanding shares and new instruments launched. Commodities- and currency-based ETFs, however, saw significant losses.
Equities-based ETFs, which represents approximate three quarters of all listed US ETFs, saw the addition of 25 new listings and a 29% aggregated growth in assets to US$ 1.5 trillion. Only emerging-market equities ETFS saw a 10% growth while ETFs focused on sector, small to mid-cap witnessed a double-digit decline. Those ETFs focused on large caps, specialty, developed markets and leverage/short positions remained unchanged.
Fixed income ETFs, 18% of the ETF market, also experienced growth, but not as much their equities siblings. The fixed income ETFs’ asset grew 8% over the same period to US$ 283 billion. Seven new fixed income ETFs were also launched.
Commodities- and currencies-based ETFs, 6% and 2% of the ETF market respectively, faced a much tougher period. Only one new commodities-based ETF came to market and the number of currency-based ones remained unchanged. Both ETF categories also saw a 9% and 25% outflow of assets. The ADV for commodities-based ETFs fell 54% compared to currency-based ETFs, which saw a steeper 67% drop. In comparison, the ADV for equities and fixed income ETFs fell 11% and 30% respectively.