Investors prefer active ETFs while fixed income flows dominate in H1 2023
Passive fixed income ETFs have grown to 29% of global fixed income assets — up from 8% since the end of 2008.
This compares with just 3% growth in fund flows for passive ETFs, which are often a more popular option due to their low costs.
However, passive fixed income ETFs have grown to 29% of global fixed income assets — up from 8% since the end of 2008.
Thematic ETFs benefit from AI boom throughout H1
Indexed strategies now account for a staggering 39% of assets globally — compared to 31% at the end of 2019 — representing $16.2trn. Active ETFs in particular are becoming more popular in Asia, with the sub-category seeing a 78% growth rate in the region over the first half of 2023.
Meanwhile, Morningstar's bi-annual report, entitled Global Fund Flows, also revealed that fixed income funds was the only category to enjoy inflows — worth $236bn — in H1 2023. $150bn of this came from the US, while $70bn was accounted for by continental Europe.
Global funds and ETFs were the most popular within their asset classes, seeing $54bn of inflows. Meanwhile, sustainable funds had more than $51bn of inflows, bringing assets in the category to $2.8trn.
Unsurprisingly, the world's largest index funds continued to dominate flows league tables, though JPMorgan, Fidelity and PIMCO active names found themselves spread across a leading list of passive strategies.
JPMorgan's Equity Premium Income ETF, the most successful ETF launch ever, came in 8th place, while its Large Cap Growth fund came in 4th. . Together, these strategies brought in $23bn.
Morningstar: Equity funds suffer largest monthly net outflow since September 2022
The report revealed another win for the group as JPMorgan posted the highest organic growth rate (5.6%) among
Read more on investmentweek.co.uk
