In recent years, exchange-traded funds (ETFs) have become the most demanded products by investors, both institutional and individual, which has led them to reach a global level. volume of 13.61 billion dollarsaccording to data from the consulting firm ETFGI.
In a market dominated by a few firms (with BlackRock and Vanguard at the helm), the strategy of price competition, reducing tenths to the quasi-minimum of expression in many products, particularly those of the North American stock market, no longer works. And this is one of the reasons that explains the emergence of actively managed ETFs, where managers transfer to passive vehicles some of their active fund strategies in an attempt to differentiate themselves from their competitors and thus apply higher commissions.
Another reason is that Simple replication of indices does not provide value to investors looking for something more than simple indexing. to a certain market, especially if it is Wall Street. Thus, managers who entered the exchange-traded fund market later favored this segment of actively managed ETFs to stand out, as is the case with JP Morgan AM.
And this push for active ETFs has led these vehicles to approach $1 trillion in assets under management, according to ETFGI’s late July data. Specifically, They already manage $974.290 million, which represents an increase of almost 32% over the volume with which they closed last year.A figure to which the nearly 190 billion dollars of net deposits accumulated in 2024 contributed, more than double what they achieved last year and which becomes a new record for this type of product.
That net subscription volume represents a quarter of what ETFs have captured overall for the year, adding nearly $14 trillion in assets under management, according to ETFGI calculations.
We will have to wait for data from this month, when Black Monday took place, to assess investor behavior, but based on the top-selling ETFs in July worldwide, North American stock market remains a priorityhighlighting the cash inflows into the iShares Russell 2000 Grayscale ETF and Ethereum ETF.
In fact, according to the LSEG analysis, US equity funds were those with the most deposits in July, with $62.3 billion, followed by alternative currency strategies, with $14.4 billion, in what appears to be a movement in anticipation of the end of the year. to trade with the Japanese yen.
Among the top-selling active ETFs globally last month were: Magellan Global Fund/Open Categorywith $1.636 million, Capital Group Municipal Income ETFwith 1,347, Janus Henderson AAA CLO ETF (1,092 million), AB Low Volatility International Equity ETF (815 million) and Hwabao WP Cash Tianyi Listed Money Market Fund ($700 million), according to data from consulting firm ETFGI.
Crypto ETFs
The approval of bitcoin and then ethereum cash exchange-traded funds in the United States has caused a veritable avalanche of flows into these products. In fact, even though the fund Grayscale Ethereum Trust was one of the bestsellers of July, the iShares Bitcoin Trust It remains the crypto ETF with the largest volume of assets, with just over $20 billion.
Although in Spain the use of ETFs is less widespread among retailers, the emergence of different platforms and digital banks has led them to position themselves as an alternative for more self-taught investors.
