ETFGI reported today that assets invested in the global ETFs and ETPs industry extended the lead over the global hedge fund industry to US$4.39 trillion at the end of 2020, an increase of 44.95% since 2019. (All dollar values in USD unless otherwise noted.)
By Deborah Fuhr, Managing Partner at ETFGI
- Assets invested in global ETFs and ETPs industry increase the lead over assets in global hedge fund industry to $4.39 trillion at the end of 2020.
- In 2020 the HFRI Fund Weighted Composite Index was up 11.74%, while the S&P 500 Index with dividends was up 18.39%
- Hedge funds gathered net inflows of $3 Bn in Q4 while ETFs/ETPs gathered net inflows of $258.3 Bn.
Assets invested in the global ETF/ETP industry first surpassed those invested in the hedge fund industry at the end of Q2 2015, as ETFGI had forecasted. Growth in assets in the ETF/ETP industry has outpaced growth in the hedge fund industry since the financial crisis in 2008. According to ETFGI’s analysis $7.99 trillion were invested in 8,607 ETFs/ETPs listed globally at the of 2020, representing an increase in assets of 15.96% over the quarter. Over the same period assets invested in hedge funds globally increased by 8.76%, to $3.6 trillion in 8,042 hedge funds, according to a report by HFR.
During the fourth quarter of 2020 ETFs/ETPs listed globally gathered $258.3 billion in net inflows, according to ETFGI’s Global ETF and ETP industry insights report. In contrast, HFR reported that hedge fund saw net inflows of $3 billion in Q4 2020.
Growth in global ETF/ETP and global hedge fund assets, as at end of December 2020
In Q4 2020 the performance of the HFRI Fund Weighted Composite Index was up 10.81%, while the S&P 500 Index with dividends increased 12.14%. Year to date, the HFRI Fund Weighted Composite Index was up 11.74%, while the S&P 500 Index with dividends has increased 18.39%.