Trackinsight Global ETF Survey: Mid-Year Update Reveals Mixed Fortunes for Vanguard

Trackinsight, the first global ETF analysis platform, has released the mid-year update to its 2021 Global ETF Survey. 

The survey polled more than 370 professional investors, managing over $345 Billion in ETF assets, making it one of the worlds’ most wide-ranging and comprehensive research studies into the buying behavior, selection process and asset allocation strategies of institutional ETF users.

The update includes re-ranked league tables for ETF issuers and index providers alongside new commentary and analysis on thematic, ESG and active ETF market activity. You can download the updated league tables by clicking here.

The update reveals that the North American ETF market, which reached $5.8 Trillion in AuM in Q1 2021, saw growth dominated by Vanguard. The issuer captured over 42% of total flows in the region, adding an incredible $95 Billion in the first quarter. Total ETF flows in North America were $218 Billion over the quarter.

However, Vanguard could not replicate this success in Europe where its ETF business has struggled to compete. Vanguard added only $3.8 Billion of flows in Europe, falling far short of the European market leader, iShares, that attracted $19.6 Billion in the same period. Vanguard has only 5.8% ETF market share in Europe, compared to nearly 29% market share in North America.  

However, Vanguard saw surprising success in its US Active ETF business, growing assets 31.4% year-on-year to $5.3 Billion. This growth rate is second only to Ark Investments that has seen 36.7% year-on-year growth in their active ETF suite, which reached $47 Billion in AuM by the end of the first quarter.

In European ETF markets, the survey shows that SPDR seems to have finally figured out its distribution strategy for local investors, growing an astonishing 1,234% year-on-year, reaching $6 Billion in assets. The next fastest-growing issuer, Legal & General Investment Management expanded 33.5% year-on-year to reach a total of $9.5 Billion in assets.

Julien Scatena, Head of Client Solutions at Trackinsight commented:

“Far from bridging the gap with passive ETFs, which now represents $ 7.8 Trillion in assets under management, actively managed strategies gained ground during Q1 2021 with 15% of net inflows. Interestingly, the active ETF assets are skewed toward Fixed Income strategies (48% of total AUM), while equity strategies are way ahead in the passive world (80% of total AUM). Since the beginning of the year, their global assets increased by 9.5% (the most significant increase among the different asset classes) to reach $ 6.3 Trillion globally. Check all the detailed results in the Q1 league tables update.”

The Trackinsight Global ETF Survey 2021 is supported by J.P. Morgan Asset Management and IHS Markit. Trackinsight is recognized as the leading source of independent and reliable information on over 7,000 Exchange Traded Funds listed globally. In 2021, Trackinsight launched ESG Observatory to provide data, research and transparency on the global market for ESG ETFs.

All data referenced in this release is in USD and sourced from Trackinsight as of 31/03/2021.