ETFGI reported that currency hedged ETFs and ETPs listed globally gathered net inflows of US$3.10billion during February bringing year to date net inflows to US$7.17 billion……..
By Deborah Fuhr, Managing Partner at ETFGI
Total assets invested in currency hedged ETFs and ETPs decreased by 2.2% from US$181 billion to US$177 billion, with a 5-year CAGR of 21.3%, according to ETFGI’s February 2020 Currency hedged ETFs and ETPs industry landscape insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Currency hedged ETFs/ETPs gathered net inflows of $3.01 billion during February.
The $177 billion invested in currency hedged ETFs / ETPs listed globally at the end of February is the 3rdhighest on record
“At the end of February, the S&P 500 was down 8.2% as coronavirus cases continued to spread and the potential economic impact weighed on investors and the markets. Outside the U.S., the S&P Developed ex-U.S. BMI declined nearly 9.0%. The S&P Emerging BMI lost 5.1% during the month. Global equities as measured by the S&P Global BMI ended down 8.1% with 49 of 50 included country indices down, while China gained 0.9%.” According to Deborah Fuhr, managing partner, founder and owner of ETFGI.
At the end of February 2020, there were 783 currency hedged ETFs/ETPs, with 1,709 listings, assets of $177 billion, from 73 providers listed on 29 exchanges in 22 countries. Following net inflows of $3.10 billion and market moves during the month, assets invested in currency hedged ETFs/ETPs decreased by 2.2%, from $181 billion at the end of January to $177 billion.
Growth in the US currency hedged ETF and ETP assets as of the end of February 2020
At the end of February 2020, there were currency hedged ETFs/ETPs hedged against 15 different currencies. Year to date, 7 new currency hedged ETFs/ETPs were launched by 13 providers across 7 index providers in 8 countries, while 7 products were delisted from 2 different providers.
During the month, Mixed exposures gathered the largest net inflows with $1.42 billion, followed by United States exposures with $1.29 billion and Global-Developed exposures with $707 million, while Asia Pacific-Developed exposures experienced the largest net outflows with $656 million. On a year to date basis, Mixed exposures gathered the largest net inflows with $2.86 billion, followed by United States exposures with $2.50 billion and Global-Developed exposures with $1.92 billion, while Asia Pacific-Developed exposures experienced the largest net outflows with $870 million.
The top 10 currency hedged ETFs/ETPs by net new assets collectively gathered $2.81 billion at the end of February.
The Vanguard Total International Bond ETF (BNDX US) gathered $976 million, the largest net inflow for the month.
Top 10 ETFs/ETPs by net new assets February 2020: Currency hedged
|Vanguard Total International Bond ETF|
|Mackenzie Emerging Markets Local|
Currency Bond Index ETF
|iShares S&P 500 EUR Hedged|
UCITS ETF (Acc)
|iShares USD Treasury Bond 0-1yr|
UCITS ETF – Acc
|Xtrackers II iBoxx USD Treasuries|
UCITS ETF DR EUR Hedged
|iShares J.P. Morgan $ EM Bond EUR|
Hedged UCITS ETF (Dist) – EUR Hdg
|UBS ETF – Bloomberg Barclays US 10+|
Year Treasury Bond UCITS ETF (EUR)
|iShares $ Floating Rate Bond|
UCITS ETF – Acc (MXN)
|iShares $ High Yield Corp Bond|
UCITS ETF (MXN)
|iShares Global High Yield Corp Bond GBP|
Hedged UCITS ETF (Dist)