Exchange traded funds set a new record at the end of June, with global assets breaking the $10.5 trillion mark.
Data provided to Financial News from consultancy ETFGI shows the global ETF industry managed $10.51 trillion at the end of June, up from $10.32 trillion recorded at the end of May — the previous all-time high.
Global assets have increased 13.5% so far this year, rising from $9.26 trillion at the end of 2022, according to ETFGI.
The global ETF sector gathered $103bn of new money in June, marking the 49th consecutive month of inflows. Since January, ETFs have garnered $376.2 billion globally.
“We are seeing increased use of ETFs around the world. They are being used by large institutional investors, financial advisers and retail investors,” Deborah Fuhr, managing partner at ETFGI told FN.
“In the US, we have also seen large firms that historically said they would never offer ETFs start to embrace them and offer them as a wrapper to investors. ETFs are being used not just for index exposure, but also active [exposure].”
Several big-name US asset managers have unveiled active ETFs, including JPMorgan Asset Management, Fidelity Investments and American Century.
Others have converted traditional active mutual funds into ETFs. Dimensional Fund Advisors switched seven mutual funds with assets of more than $44 billion to ETFs between 2021 and 2022.
On July 13, Dimensional filed with the Securities and Exchange Commission to offer ETF share classes for its existing mutual funds.
US asset management giant Vanguard pioneered offering ETF share classes of existing mutual funds, patenting the approach in 2001. However, the patent expired in May, which allowed other asset managers to copy it.
An expanded version of this story is available on FNLondon.com
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