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Industry Trends: Rising Popularity of Index Investing

Some of the Outflows from Domestic Equity Mutual Funds Have Gone to ETFs 

Note:  Mutual fund data include net new cash flow and reinvested dividends; ETF data for net share issuance include reinvested dividends
Sources:  Investment Company Institute. 2021. 2021 Investment Company Fact Book:  A Review of Trends and Activities in the Investment Company Industry

Passive Investing: 21% CAGR Globally 

ETF & ETN Growth Across Regions

AUM by Listing Region (dollars in billions)

1,500 3,000 4,500 $6,000 2020 EMEA APAC Americas +21% +24% +29% 2016 $2,644 $5,714 $513 $1,211 $302 $848

Equity Flows Exceeded Prior year Levels

Equity ETP Flows

Global Cumulative Flows (dollars in billions)

J$4003002001000FMAMJJASOND0100200300$400DecNovOctSepAugJulJunMayAprMarFebJan

Record Inflows Continued into Fixed-Income Funds

Fixed Income ETP Flows

Global Cumulative Flows (dollars in billions)

JFMAMJJASOND075150225$300DecNovOctSepAugJulJunMayAprMarFebJan

The Strategic Beta ETP Market Is Maturing

Strategic Beta Equity ETP Flows

Global Cumulative Flows (dollars in billions)

J$1007550250FMAMJJASOND$0$25$50$75$100DecNovOctSepAugJulJunMayAprMarFebJan

New ESG Assets Tripled 2019 Flows

ESG ETP Flows

Global Cumulative Flows (dollars in billions) 

JFMAMJJASOND0255075$100DecNovOctSepAugJulJunMayAprMarFebJan

Indices can be used as the basis for liquid, investable products and as benchmarks for actively managed fund performance  

Notes:

Sources: Morningstar and S&P Dow Jones Indices

Note:  The ETP (or exchange-traded product) category encompasses any portfolio exposure security that trades intra-day on an exchange