Significant decline in ETFs - Global ETF FlowWatch - August 2019

Due to ongoing trade and market uncertainty, ETFs worldwide suffered $2 billion in net redemptions during the month end of August 2019. Equity ETFs declined significantly with nearly $29 billion in outflows. On the other hand, bond and commodity ETFs gained $19 billion and $8 billion, respectively. Global ETFs dropped from their record high to $5.638 trillion as of August 2019.

In the U.S., equity ETFs suffered significantly with net outflows of $23 billion, while bond ETF products surged with $14 billion in net new cash. Notably, Bond North America was the best-selling category and led with $10 billion in net new money. Commodity ETF products gained $4 billion of net flows.

ETFs in Europe experienced a noticeable decrease with $9 billion in net redemptions, driven primarily by $14 billion withdrawn from Equity ETFs. This, however, was slightly offset by Europe bond and commodity ETF products accumulating $3 billion and $2 billion, respectively. ETFs in Asia took in a moderate $8 billion in net new cash, mainly driven by equity and bond ETF product acquiring $4 billion and $2 billion, respectively. Meanwhile, commodity ETFs gathered $1 billion in net subscriptions.

Penghua CSI 5-Year Local Government Bond Index ETF Fund was the largest new fund launch in August, garnering $634 million in net flows. The ETF tracks the CSI 5-Year Local Government Bond Index and is domiciled in China.