According to ETFGI data, investors invested a total of $ 762.9 billion in ETFs last year, up 34% from a net capital inflow of $ 569 billion in 2019. And with that, the sector’s assets under management reached a new high, exceeding $ 8 trillion.
Last year’s capital inflows are a new record, even exceeding $ 654 billion in 2017, clearly due to the spectacular rise in stock markets following the spring corona virus crisis.
Demand for gold-investing ETFs also jumped to a new record high of $ 44.9 billion last year as a result of central banks ’virtually unlimited quantitative easing programs. Since the 2008 crisis, investors have allocated a total of more than $ 4.6 trillion in fresh capital to ETFs, largely due to BlackRock and Vanguard becoming the world’s two largest fund managers.
According to the paper, the two fund managers collected more than half of the fresh money entering the ETF market, further increasing the already significant market concentration in the sector. Compared to them, other rivals like State Street, UBS, Invesco or JP Morgan could no longer report such strong demand.
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