Global ETF, ETP Investing Reaches Record Highs

Robbie Lawther

15 August 2017

Exchange-traded fund and exchange-traded product investing has reached record level highs during the first seven months of 2017, according to independent research and consultancy firm ETFGI, fuelling concerns that there is a passive investment "bubble" about to burst.

ETFGI said that investments into the global ETF/ETP ecosystem have reached highs of $391.3 billion, which is a billion more than what was invested in all of 2016. In July, ETFs and ETPs listed globally gathered $43.48 billion in net inflows, which marks 41 consecutive months of net inflows.

As the ETF/ETP sector continues to grow, thoughts are growing to whether this is sustainable in the financial market, and whether it could an industry “bubble”.

More and more firms are launching ETFs, including asset management firm Blackrock, which launched four in the month of July as reported by our sister publication WealthBriefing.