Key Takeaways
- Global ETF assets under management (AUM) surpassed $12 trillion for the first time in Q3 2023, marking a 20% year-over-year increase.
- U.S. ETF AUM hit $8.1 trillion by end of 2023, representing 66% of global ETF market.
- European ETF/ETP AUM grew to €1.7 trillion in 2023, up 15% from prior year.
- Globally, ETF AUM grew at 15% CAGR from 2018-2023 to $11 trillion.
- U.S. saw 450 new ETF launches in 2023, highest since 2021.
- Europe registered 280 new ETF/ETP listings in 2023.
- Global net ETF inflows reached $1.2 trillion in 2023.
- U.S. ETF net inflows hit $800 billion in 2023.
- Europe saw €150 billion net ETF inflows in 2023.
- U.S. ETF average 1-year return was 18.5% as of Dec 2023.
- S&P 500 ETF average return: 24% in 2023.
- Global equity ETF avg 1-yr return: 15.2% end-2023.
- ETFs captured 45% of U.S. equity fund AUM by 2023.
- 55 million Americans owned ETFs in 2023, up 20% from 2020.
- Institutional investors hold 40% of U.S. ETF AUM in 2023.
The global ETF industry has reached record highs, demonstrating significant growth and widespread adoption.
AUM and Market Size
- Global ETF assets under management (AUM) surpassed $12 trillion for the first time in Q3 2023, marking a 20% year-over-year increase.
- U.S. ETF AUM hit $8.1 trillion by end of 2023, representing 66% of global ETF market.
- European ETF/ETP AUM grew to €1.7 trillion in 2023, up 15% from prior year.
- Asia-Pacific ETF AUM exceeded $1.2 trillion in mid-2024, driven by Japan and China markets.
- Active ETF AUM in the U.S. reached $500 billion in 2023, doubling from 2020 levels.
- Fixed income ETFs globally held $2.1 trillion AUM as of Q2 2024.
- Equity ETFs accounted for 72% of total global ETF AUM at $9 trillion in 2023.
- Commodity ETFs AUM stood at $1.5 trillion worldwide in late 2023.
- U.S. listed ETF AUM grew by $1.7 trillion in 2023 alone.
- Canadian ETF AUM surpassed CAD 300 billion in 2023, up 25% YoY.
- Australian ETF AUM reached AUD 150 billion by end-2023.
- Brazil ETF AUM grew to BRL 50 billion in 2023 amid market volatility.
- Smart beta ETF AUM globally hit $1.4 trillion in Q1 2024.
- ESG ETF AUM worldwide exceeded $400 billion in 2023.
- Leveraged and inverse ETF AUM in U.S. was $120 billion in 2023.
- Multi-asset ETFs AUM reached $300 billion globally in 2023.
- U.K. ETF AUM stood at £250 billion in 2023.
- Indian ETF AUM surpassed INR 500 billion in FY2023.
- South Korean ETF AUM hit KRW 100 trillion in 2023.
- Thematic ETFs AUM grew to $250 billion globally by Q2 2024.
- Buffer ETFs AUM in U.S. reached $40 billion in 2023.
- Crypto ETP AUM exceeded $50 billion in Europe by 2024.
- Target-date ETFs AUM hit $20 billion in U.S. 2023.
- Volatility ETFs AUM was $15 billion globally in 2023.
- Covered call ETFs AUM surpassed $30 billion in U.S. 2023.
- U.S. 401(k) plans allocated 25% to ETFs with $1.2 trillion AUM in 2023.
- Robo-advisor ETF AUM reached $200 billion globally in 2023.
- Pension fund ETF holdings totaled $800 billion in U.S. 2023.
- Hedge fund ETF usage AUM was $150 billion in 2023.
- Retail investor ETF AUM in U.S. hit $2.5 trillion in 2023.
AUM and Market Size Interpretation
Adoption and Trends
- ETFs captured 45% of U.S. equity fund AUM by 2023.
- 55 million Americans owned ETFs in 2023, up 20% from 2020.
- Institutional investors hold 40% of U.S. ETF AUM in 2023.
- Retail ownership of ETFs rose to 35% of shares outstanding 2023.
- 401(k) ETF allocation avg 20% in 2023 plans.
- Women ETF investors grew 30% to 45% of retail base 2023.
- Millennials represent 40% of new ETF account openings 2023.
- Robo-advisors 70% ETF allocation avg in 2023.
- Pension funds increased ETF allocation to 15% avg 2023.
- Wirehouse advisors ETF usage 60% of portfolios 2023.
- Global ETF market share of total fund AUM: 10% in 2023.
- U.S. RIA firms 80% use ETFs in client portfolios 2023.
- ESG ETF adoption by institutions: 25% AUM allocation 2023.
- Crypto ETP trading volume doubled to 5% of equity ETF vol 2024.
- Target-date fund ETF wrappers 30% market share 2023.
- Hedge funds using ETFs for liquidity: 50% in 2023 surveys.
- Average holding period for ETFs: 1.5 years retail 2023.
- ETF options trading volume hit 50 million contracts daily 2023.
- Direct indexing shifting 10% to ETF cores in 2023.
- Family offices ETF allocation avg 25% in 2023.
- Non-U.S. investor ETF ownership in U.S. ETFs: 20% 2023.
- ETF model portfolio usage by advisors: 70% in 2023.
- Sustainable investing ETF preference: 40% retail investors 2023.
- ETF tax efficiency premium: 1-2% annual advantage over MFs 2023.
- Global trading days ETF vol exceeded $100B avg 2023.
Adoption and Trends Interpretation
ETF Launches and Closures
- Globally, ETF AUM grew at 15% CAGR from 2018-2023 to $11 trillion.
- U.S. saw 450 new ETF launches in 2023, highest since 2021.
- Europe registered 280 new ETF/ETP listings in 2023.
- Asia ex-Japan launched 120 ETFs in 2023.
- Total global ETF launches reached 1,200 in 2023.
- U.S. ETF closures numbered 250 in 2023, down 10% from 2022.
- Active ETFs launched 150 new products in U.S. 2023.
- Fixed income ETF launches globally: 300 in 2023.
- ESG ETF launches hit 200 worldwide in 2023.
- Thematic ETF launches surged to 400 globally in 2023.
- Crypto ETF approvals led to 20 new U.S. launches in 2024.
- Leveraged ETF launches: 50 in U.S. 2023.
- Smart beta new ETFs: 180 globally 2023.
- Canada ETF launches: 60 in 2023.
- Australia new ETF listings: 40 in 2023.
- India ETF launches doubled to 25 in FY2023.
- Total U.S. ETFs available: 3,000+ by end-2023.
- Europe ETF count reached 2,500 in 2023.
- Global ETF universe expanded to 8,500 products in 2023.
- Closures in Europe: 100 ETFs delisted in 2023.
- U.S. semi-transparent active ETFs launched 100 in 2023.
- Buffer strategy ETF launches: 30 in U.S. 2023.
- Covered call new launches: 25 in 2023.
- Volatility ETP launches: 15 globally 2023.
- Target maturity bond ETF launches: 40 in 2023.
- Multi-factor ETF new products: 50 in 2023.
- U.S. ETF industry saw net 200 launches after closures in 2023.
- Global ETF net creations: 900 in 2023.
- Year-to-date 2024 U.S. launches: 200 by Q2.
ETF Launches and Closures Interpretation
Flows and Inflows/Outflows
- Global net ETF inflows reached $1.2 trillion in 2023.
- U.S. ETF net inflows hit $800 billion in 2023.
- Europe saw €150 billion net ETF inflows in 2023.
- Equity ETFs captured 60% of global inflows at $720 billion in 2023.
- Fixed income ETF inflows globally: $350 billion in 2023.
- U.S. bond ETF inflows reached $250 billion in 2023.
- ESG ETF net inflows: $100 billion worldwide 2023.
- Active ETF U.S. inflows: $150 billion in 2023.
- Bitcoin ETF U.S. inflows: $15 billion in first month 2024.
- Gold ETF outflows globally: $20 billion in 2023.
- Tech sector ETF inflows U.S.: $200 billion 2023.
- Emerging markets ETF inflows: $50 billion global 2023.
- Dividend ETF inflows U.S.: $40 billion in 2023.
- Value ETF inflows surged $100 billion U.S. 2023.
- Growth ETF outflows U.S.: $30 billion late 2023.
- Canada ETF net inflows: CAD 25 billion 2023.
- Australia ETF inflows: AUD 20 billion 2023.
- Leveraged ETF net outflows U.S.: $10 billion 2023.
- Smart beta ETF inflows: $120 billion global 2023.
- Thematic ETF inflows: $80 billion worldwide 2023.
- High yield bond ETF inflows: $60 billion U.S. 2023.
- Treasury ETF inflows U.S.: $150 billion 2023.
- Commodity ETF net outflows: $50 billion global 2023.
- International equity ETF inflows U.S.: $70 billion 2023.
- Small-cap ETF inflows U.S.: $25 billion 2023.
- Real estate ETF inflows: $15 billion global 2023.
- Healthcare sector ETF inflows U.S.: $50 billion 2023.
- Energy ETF outflows: $20 billion U.S. 2023.
Flows and Inflows/Outflows Interpretation
Performance Metrics
- U.S. ETF average 1-year return was 18.5% as of Dec 2023.
- S&P 500 ETF average return: 24% in 2023.
- Global equity ETF avg 1-yr return: 15.2% end-2023.
- U.S. bond ETF avg return: 5.8% in 2023.
- Investment grade corporate ETF avg YTD return Q2 2024: 2.1%.
- High yield bond ETF avg 1-yr return: 13.5% 2023.
- Gold ETF avg return: 13% in 2023.
- Tech sector ETF avg return U.S.: 45% 2023.
- Value ETFs outperformed growth by 15% in 2023 U.S.
- Emerging markets ETF avg return: 10% global 2023.
- Dividend ETF avg yield: 3.2% with 8% total return 2023.
- ESG ETF avg underperformed benchmarks by 1.5% in 2023.
- Active ETFs avg outperformance: 2% vs passive in 2023 U.S.
- Leveraged 2x S&P ETF avg return: 45% 2023.
- Bitcoin ETF avg YTD return Q2 2024: 30%.
- Small-cap ETF avg return U.S.: 16% 2023.
- Real estate ETF avg return: -5% in 2023.
- Energy sector ETF avg return: 5% U.S. 2023.
- Healthcare ETF avg return: 10% U.S. 2023.
- Smart beta ETF avg alpha: 1.2% over 5 years to 2023.
- Volatility ETF avg return: -10% in 2023.
- Covered call ETF avg yield: 8-12% annualized 2023.
- Treasury ETF avg return: 4.5% U.S. 2023.
- International ETF avg return U.S. investors: 12% 2023.
- 60/40 portfolio ETF avg return: 15% 2023.
- Buffer ETF avg return: 8-10% with downside protection 2023.
- Multi-asset ETF avg Sharpe ratio: 0.8 in 2023.
- Commodity ETF avg return ex-gold: 2% 2023.
- U.S. ETFs beat mutual funds by 1.5% avg annualized over 10 years to 2023.
Performance Metrics Interpretation
Sources & References
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