THE GLOBAL ETF SURVEY 2024

50+ Charts
on Worldwide
ETF Trends
The Year of Active
Management 2019
$162 bn

2017
$83 bn

Global Active ETFs Assets 2023

Under Management $691 bn

2015
$54 bn

2021
$412 bn

This report is powered by Trackinsight data from more than

10,000 ETPs and insights gathered from over 500 investors
overseeing a total of $900 billion in ETF assets.

FOUNDING PARTNER SUPPORTING PARTNER

 THE GLOBAL ETF SURVEY 2024 2

Outline
Our fifth annual “50+ Charts on Worldwide ETF Key insights about survey respondents:

Trends” survey is here, and it’s much more than Top Represented Institutions:
Single/Multi Family Office (26.43%)
just numbers—it’s a captivating story we’re
Financial Advisor (21.66%)
thrilled to share. At Trackinsight, we’re not merely Asset Manager (19.92%)
observers on the sidelines; we’re immersing
Primary Respondent Locations:
ourselves in the ever-expanding universe of
Europe - Middle East (49.6%)
ETFs. This year, like every year, we’ve gone the North America (38.7%)
extra mile. We’ve melded data from our extensive Asia - Pacific (6.7%)
database of 10,000 ETPs with insights from
investors who live and breathe the market every
day. Together, we’re unraveling the current state
of affairs and exploring potential future directions
for the ETF industry. It’s all about connecting the
dots, exchanging insights, and collaboratively
identifying the next major trends.

Visit trackinsight.com today for pro-level

ETF selection tools, industry news, and
real-time ETF market data.

SECTION 1 LOOKING BACK SECTION 4 ESG ETFS

ETFs in 2023: Back on Track 5 ESG Polarity Across the 22

States and the Atlantic
SECTION 2 ACTIVE ETFS SECTION 5 THEMATIC ETFS

Active ETF Mode 10 Thematic Investing: The 30

is Activated Ebb and Low Flows
SECTION 3 FIXED INCOME ETFS SECTION 6 CRYPTO ETFS

Bonds Are Not Dead 16 Sunshine Hopes for the 36

Crypto Winter
 THE GLOBAL ETF SURVEY 2024 3

Foreword

As we unveil the fifth edition of our Global ETF Survey, “50+ Charts on Worldwide ETF
Trends,” on the occasion of Trackinsight’s 10th anniversary, I am filled with a profound
sense of pride and reflection.

Fueled by the vision of an extraordinary team, we have transformed a pioneering concept

into the leading source for global ETF analytics and insights.

Leveraging Trackinsight’s 500 million data points covering 10,000+ ETPs and enriched by
insights from over 500 seasoned investors overseeing ETF assets exceeding $900 billion,
our objective here is to shed light on the influential factors that have shaped the current
landscape of the ETF industry. Moreover, we seek to highlight the burgeoning trends
poised to unlock the industry’s next chapter.

The ETF industry is anything but dull, innovating every year. The rise of active ETFs is
the genuine prevailing trend that is shaping the industry’s future. It signifies a growing
appetite for blending management expertise and risk management proficiency with
the diverse advantages offered by ETFs. This shift paves the way for more deliberate,
strategy-driven investment choices, potentially heralding a new era of asset growth.

Amidst the backdrop of the significant generational wealth transfer, there is a robust
momentum in the adoption of ETFs, with a notable shift and increasing transition from
Mutual Funds to ETFs. The industry’s crossing of $11 trillion in global assets under
management is a milestone that highlights the increasing trust and reliance placed in
ETFs by investors worldwide.

This edition, in collaboration with industry leaders J.P. Morgan Asset Management and
State Street, marks a notable advancement in our ongoing quest to uncover the depths
of the expanding ETF market.

Looking ahead, let’s embrace these developments with enthusiasm and a shared vision,
ready to push the boundaries of savvy and purposeful investing. I’m genuinely excited
about the outlook for the ETF industry, which I am confident will continue to deliver
nothing short of remarkable innovations, just as we have witnessed over the past three
decades.

A huge thank you to our partners, clients, and everyone who sees Trackinsight as a
cornerstone for ETF analysis and selection.

Yours Truly,

Philippe Malaise
CEO Trackinsight
A Leader in Global
ETF Research and
Analytics
Trackinsight offers an extensive database comprising
over 500 million data points on 10,000+ ETPs globally.

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 THE GLOBAL ETF SURVEY 2024

SECTION 1 LOOKING BACK

ETFs in 2023:
Back on Track
 THE GLOBAL ETF SURVEY 2024 ETFS IN 2023 6

ETFs in 2023:
Back on Track

In 1990, a groundbreaking moment occurred in Canada: Figure 1.2. AUM Share

the introduction of the very first ETF. This event funda- Source: Trackinsight
mentally transformed the way people approached in-
vesting, introducing the benefits of pooled investment
and unmatched trading flexibility
7%
Just three years later, in January 1993, the American Stock
16%
Exchange (AMEX, now NYSE) introduced the first US-listed
exchange-traded fund (ETF). The debut of the SPY ticker sym- NORAM
bol on the screen marked a significant milestone in the ETF’s EMEA
evolution. APAC

Fast forward to today, the SPY boasts close to $500 billion

77%
AUM, which is almost as big as the economies of Thailand,
Egypt, Nigeria, or Singapore.

ETF industry assets

Figure 1.3. Global ETF AUM ($tr)
Over the span of three decades, the ETF industry has achieved Source: Trackinsight
remarkable growth, surpassing the prestigious hedge funds
$12 0
industry in total assets and is eyeing to catch up with the behe-
moth mutual funds industry. FIGURE 1.1
$10 00

Figure 1.1. ETF vs Hedge Funds AUM ($tr)

$ 0
Source: Trackinsight

$12 0 $ 00

$10 00 $2 0

$ 0 $-
2014 201 201 201 201 201 2020 2021 2022 202

$ 00 APAC EMEA NORAM

$2 0

By 2023, ETF AUM had seen significant growth in these regions:

$-
2014 201 201 201 201 201 2020 2021 2022 202
• In NORAM, it had expanded to $8.43 trillion.
ETFs Hedge Funds • In EMEA, it had risen to $1.72 trillion.
• In APAC, it had increased to $741.6 billion.

According to our data, the global ETF market experienced This data underscores the substantial growth in ETF invest-
substantial expansion over the last decade, soaring from $2.61 ments, with the North America region leading in assets under
trillion in 2014 to an impressive total asset value of $11 trillion management over the years.
in 2023, representing an annual growth rate of approximately
17.20%. FIGURE 1.2 In 2022, assets temporarily dipped to $8.76 trillion as central
banks worldwide adopted a cautious stance due to mounting
In 2014, ETFs AUM in the North America (NORAM) region were post-COVID inflation concerns and the aftermath of the Rus-
$2.02 trillion, in the Asia-Pacific (APAC) region, they stood at sia-Ukraine conflict, which disrupted the supply of energy and a
$155.2 billion, and in the Europe, Middle East, and Africa (EMEA) range of commodities.
region, they reached $432 billion. FIGURE 1.3

Markets made an astonishing comeback in 2023, defying pre-

dictions of a prolonged downturn. Despite grappling with chal-
 THE GLOBAL ETF SURVEY 2024 ETFS IN 2023 7

lenges like rising interest rates, US bank setbacks, and geopolit-

Figure 1.5. NORAM ETF Launches vs Closures
ical tensions, the economy showcased remarkable resilience. Source: Trackinsight

This revival was triggered by enduring accommodative mon- 2023

etary policies, substantial fiscal stimulus, and initially modest 2022
investor outlooks for the year. 202

2020
Both the S&P 500 and the MSCI World index saw a remarkable
20
uptick of approximately 24%, recouping a significant portion of
208
the losses incurred in the preceding year.
20

206
Fund launches vs. closures
20

Asset managers have continued to expand the menu with new -400 -200 0 200 400 600 800
innovative strategies that cater to different market cycles and
Launches Closures
investor preferences.

By year-end 2023, the global ETF landscape (excluding other

ETPs) had a total of 8,990 ETFs, up from 8,393 in 2022 and
5,738 in 2018. FIGURE 1.4
ETF industry flows
In 2023, global ETF flows reached approximately $837 billion,
Figure 1.4. Global ETF Count falling short of the record set in 2021 at around $1.20 trillion, yet
Source: Trackinsight 66$ billion higher compared to 2022. FIGURE 1.6

10,000
9,000 Figure 1.6. Net ETF Flows ($bn)
8,000 Source: Trackinsight
7,000
$1400
6,000
5,000 $1200

4,000 $1000
3,000
$00
2,000
1,000 $00
0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 $400

$200
NORAM EMEA APAC
$-
2014 201 201 201 201 201 2020 2021 2022 202

This growth was especially notable in North America (NORAM), NORAM EMEA APAC
where ETFs now make up an impressive 51.1% of the global
total. In terms of new launches and closures, NORAM saw 700
new ETFs introduced (compared to 575 in 2022) and 333 clo- Breaking it down by region, NORAM totaled $633 billion in
sures (compared to 179 in 2022). FIGURE 1.5 2023, nearly matching the flows from the previous year but way
off their record breaking 2021 where ETFs netted close to a
Meanwhile, Europe experienced substantial development, con- trillion. FIGURE 1.7

tributing 37% to the worldwide ETF count. 340 new ETFs hit the
European market in 2023 (compared to 370 in 2022) and 169 EMEA flows exhibited strong improvement, surging to $163
closures (compared to 42 in 2022). billion compared to $88 billion in 2022 but also fell short of 2021
figures, which stood at $191 billion. FIGURE 1.8

Closures often result from factors such as inadequate assets

under management, high fees, disappointing performance, and ETF flows in the APAC region have exhibited significant volatil-
limited track records. ity from 2014 to 2023, with a peak of $98 billion in 2018 and a
sharp rise in 2020, followed by a persistent decline to $41 billion
When compounded with the market challenges faced in 2022, by 2023. FIGURE 1.9

some providers found it challenging to maintain their presence

in 2023.
 THE GLOBAL ETF SURVEY 2024 ETFS IN 2023 8

Survey Insights: Current Trends and Future Projections

Figure 1.7. NORAM Net ETF Flows ($bn)
for ETF Investment Strategies
Source: Trackinsight

$1000
Reflecting on 2023, our survey respondents have provided valu-
$00 able insights into their current and future engagement with ETF
$00 investments. The data reveals a strategic distribution, with a
$ 00 quarter highlighting a 10%-30% ETF allocation in their portfolios
and a notable group allocating upwards of 60%.
$00

$00
Looking ahead, the sentiment leans towards increased adop-
$400 tion, with 25% of investors poised to expand their equity ETF
$00 exposure by over 20%, and nearly half considering an increase
$200 of 5%-20%, suggesting a confident outlook in the equity market.

$100
As for fixed income ETFs, stability seems to be the theme, with
$-
2014 201 201 201 201 201 2020 2021 2022 202 41% of respondents intending to maintain their current stakes
and about a third eyeing a modest increase. In contrast, com-
modities and multi-asset ETFs are expected to hold steady, as
Figure 1.8. EMEA Net ETF Flows ($bn)
the majority of investors are inclined to preserve their existing
Source: Trackinsight
allocation levels.
$20
A segment of our survey’s respondents showed a reserved
$200
stance towards ETF investments. The predominant reason,
accounting for 24%, is a preference for the control and cus-
tomization that direct stock ownership provides. Additionally,
$10 28% cited that ETFs do not align with their specific investment
strategies, indicating a considerable impact on their investment
$100 choices.

$0

Need the full picture on the evolving market?

$- Complete, free, up-to-date Trackinsight Industry Data is
2014 201 201 201 201 201 2020 2021 2022 202
just a click away.

Figure 1.9. APAC Net ETF Flows ($bn)

Source: Trackinsight ETF Market Overview league tables (updated weekly):

$120
Global ETFs Overview by Asset Class

$100 Global ETFs Overview by Region

Americas ETFs Overview by Asset Class

$0
EMEA ETFs Overview by Asset Class
$0
APAC ETFs Overview by Asset Class
$40

$20

$-
2014 201 201 201 201 201 2020 2021 2022 202
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 THE GLOBAL ETF SURVEY 2024

SECTION 2 ACTIVE ETFS

Active ETF Mode

is Activated
 THE GLOBAL ETF SURVEY 2024 ACTIVE ETFS 11

Active ETF Mode

is Activated

While most global ETFs remain index-based, active- This surge is mirrored in the flow of investments, with North
ly managed ETFs are gaining traction, offering a new American active ETFs capturing a quarter of the region’s total
avenue for investors seeking potential alpha generation ETF flows by 2023, a substantial increase from the 10% seen in
and specific outcomes while managing risks. 2018.

Zooming in on asset class, investor interest in active equity

Active ETFs surge in North America
ETFs has surged, with their share of inflows jumping from 3% in
In the two principal markets, the total assets under management 2018 to 26% in 2023. Conversely, share of active fixed income
(AUM) have soared to $664 billion, marking an increase of over ETFs of total fixed income flows varied over the years.
500% since 2018. FIGURE 2.1 FIGURE 2.3 FIGURE 2.4

This segment has specifically seen a remarkable surge in North

Factors driving active ETF growth in North America
America, capturing a significant portion of the ETF market by
the end of 2023. In 2019, the active ETF landscape in North America, especially
the U.S., experienced a significant transformation due to two
In just five years, active ETFs share of total ETF assets skyrock- crucial regulatory developments. That year marked the approval
eted from 2.8% to an impressive 7.5%. FIGURE 2.2 of non-transparent ETFs, allowing them to forgo daily disclosure

Figure 2.3. Net Flows into Active ETFs ($bn)

Source: Trackinsight
Figure 2.1. Active ETFs AUM
Source: Trackinsight $1

$00 $1 0

$00 $12

$00 $100

$00 $

$00 $ 0

$200 $2

$100 $-
2018 201 2020 2021 2022 202
$-
2018 201 2020 2021 2022 202
NORAM EMEA

NORAM EMEA
Figure 2.4. Active Share of Total ETF Flows by Asset Class in NORAM

Figure 2.2. Active ETF Share of Total Region AUM Source: Trackinsight

Source: Trackinsight 100%

8%
80%
7%

6% 60%

5%
40%
4%

3% 20%

2%
0%
2018 2020 2022 202 2018 2020 2022 202
1%
2018 201 2020 2021 2022 2023 Equities Fixed Income

NORAM EMEA Active Passive

 THE GLOBAL ETF SURVEY 2024 ACTIVE ETFS 12

of their holdings, which was a major boon for active managers

Figure 2.6. Active ETF Share of Total ETF Flows by Region
looking to protect their investment strategies. FIGURE 2.5
Source: Trackinsight

30%
Figure 2.5. NORAM Net Additions (ETF Launches – Closures)
Source: Trackinsight 25%

400
20%
350
15%
300

250 10%

200
5%
150
0%
100 2018 201 2020 2021 2022 2023

50
NORAM EMEA
0
2019 2020 2021 2022 2023

Active Passive maintaining a strong position in the active space across Europe.
Their active funds range, primarily focused on ESG strategies,
attracted a remarkable influx of over $5.6 billion in new invest-
In the same vein, 2019 also saw the implementation of SEC Rule ments in 2023, resulting in a significant surge in the issuer’s
6c-11, known as “The ETF Rule.” This regulation streamlined active AUM, which reached $14 billion by the end of the year.
the process for launching ETFs by endorsing the use of custom
baskets and eliminating the necessity for individual exemptions. Other notable contenders in the region include PIMCO and
Fidelity, boasting active ETF AUMs of $5.2 billion and $3.7
Another driving force behind the surge in active ETFs in the billion, respectively.
United States in recent years is the notable trend of converting
mutual funds into ETFs. SEC filings reveal that, since the begin- Another player aiming to establish a foothold in the European
ning of 2021, there have been more than 70 such conversions, market is ARK Invest, popular for its active thematic ETFs in the
propelled by the tax efficiencies and regulatory endorsements United States, led by Cathie Wood. The company expanded its
associated with ETFs. This trend underscores a strategic pivot presence into Europe and the UK by acquiring Rize ETF Limited
within the investment landscape, favoring the ETF structure for in late 2023. Wood has ambitious plans to introduce a series of
its numerous advantages. active ARK funds in Europe, seeking to replicate the innovative
and disruptive investment strategies that have seen success in
This transformation, highlighted by investors’ benefits such as the U.S. FIGURE 2.7

transparency, tax efficiency, liquidity, and trading flexibility,

has made active ETFs increasingly appealing compared to
Figure 2.7. EMEA Net Additions (ETF Launches – Closures)
traditional mutual funds, spurring their growth and attracting
Source: Trackinsight
investor interest.
350

In Europe, the growth of active ETFs has been more modest, 300
with assets under management reaching $32 billion in 2023, up
250
from $10 billion in 2018.
200
This slower pace is attributed to a preference for lower-cost
150
passive strategies and a complex regulatory environment that
hinders new launches. Market fragmentation across languages 100
and investment cultures further challenges active ETF
50
scalability. FIGURE 2.6

0
2019 2020 2021 2022 2023
Despite challenges, the active ETF sector in Europe is poised
for growth, driven by innovation, regulatory evolution, and Active Passive
increased investor education, along with a strong commitment
from issuers.
In APAC, active investment strategies experienced significant
Numerous ETF providers have already cracked the code to growth in 2023, accounting for 12% of total investment flows
penetrate the European active ETF market, achieving this by while representing 6.5% of the region’s AUM. This surge in
customizing strategies that resonate with European investors. active investment was particularly pronounced in China, South
Korea, and Australia, where there was strong demand for these
J.P. Morgan Asset Management takes the lead in this endeavor, strategies.
 THE GLOBAL ETF SURVEY 2024 ACTIVE ETFS 13

Need the full picture on the evolving market?

Complete, free, up-to-date Trackinsight Industry Data is
just a click away.

Active ETFs league tables (updated weekly):

Actively Managed ETFs AuM Overview by Region

Top 20 ETF Issuers in Americas by $AUM in Actively

Managed ETFs
Top 20 ETF Issuers in EMEA by $AUM in Actively
Managed ETFs

Survey results on the topic of

Active ETFs
73.2% of respondents express either current invest-
ment or a keen interest in active ETFs.

Active ETFs are more dominant within How much of your portfolio is invested in actively managed ETFs?
NORAM portfolios compared to EMEA 40%

30%

20%

10%

0%
0% 1%-5% 6%-10% 11%-20% 21%-40% More than 40%

NORAM EMEA

Most investors expect to continue to How do you expect this to change in the next 2-3 years?
inject assets and grow their exposures 60%
to Active ETFs
50%

40%

30%

20%

10%

0%
Increase by Increase b 5 No change in Decrease by Decrease by Undecided
more than 20% to 20% exposure 5% to 20% more than 20%
 THE GLOBAL ETF SURVEY 2024 ACTIVE ETFS 14

A more diversified usage of Active ETFs What allocations are you currently using Active ETFs for?
in EMEA versus a focus on Active Equity 100%
in NORAM
80%

60%

40%

20%

0%
Equity Fixed Income Thematic E  Equity E  Fixed Income Other

NORAM EMEA

Perceived value of active ETFs differ Do you see value in utilizing Active ETFs for...
from actual usage 80%

60%

40%

20%

0%
Equity Fixed Income Thematic E  Equity E  Fixe& None of the
Income above

Concerns about expenses and product What are the biggest challenges you face when investing in actively
managed ETFs?
maturity remain key challenges when
investing in active ETFs 80%

60%

40%

20%

0%
Higher costs Non- Lack of track Limited range of Other
compared to transparency of record prod4cts
passive active non-
investments transparent Es

NOZAM EMEA
 THE GLOBAL ETF SURVEY 2024 ACTIVE ETFS 15

A stronger focus in the search for What are your primary reasons for investing in actively managed ETFs?
excess return in NORAM, while 80%
diversification is top of mind in EMEA
60%

40%

20%

0%
Diversification Provide Lower Increasing Active Other
excess return management transparency stewardship
over passive fees vs active benefits
investments mutua# funds

NORAM EMEA

Preference for active strategy in ETF form

A significant majority (80.1%) would Would you be more inclined to invest in an active strategy if packaged as
an ETF rather than a mutual fund?
prefer an active strategy in an ETF
over a mutual fund, showing a strong
preference for the ETF structure.

0% 20% 40% 60% 80% 100%

Yes No Undecided

Inclination to transfer mutual fund to ETF share class

A substantial majority (81.9%) would be Recent U.S. regulatory filings have sought approval to launch active ETFs
as a share class of an existing mutual fund. Would you be more inclined
inclined to transfer an existing mutual to transfer an existing mutual fund holding to an ETF share class via a
fund holding to an ETF share class if tax-free exchange?
a tax-free exchange were available,
emphasizing the attractiveness of the
ETF structure’s tax efficiency.

0% 20% 40% 60% 80% 100%

Yes No Undecided
 THE GLOBAL ETF SURVEY 2024

SECTION 3 FIXED INCOME ETFS

Bonds Are
Not Dead
 THE GLOBAL ETF SURVEY 2024 FIXED INCOME ETFS 17

Bonds Are Not Dead

Since the launch of the inaugural fixed income ETF in Figure 3.1. Fixed Income ETFs Segments Performance
Canada in 2000, the fixed income sector has seen ex- Source: Trackinsight
traordinary growth and evolution, firmly establishing its
position in the portfolios of investors across all levels. Inflation Linked Bonds

Today, it represents a significant 20% of the total global ETF Cash & Cash Plus

assets, a testament to its increasing relevance and impact in the Emerging Markets Debt
broader financial landscape.
High Yield Corporate Bonds

In>estment Grade CorporatA

The big bond bounce back Bonds

Global Corporate Bonds

2022 was a terrible year bondholders will never forget. The
rapid climb in interest rates across the world reverberated Global So>ereign Bonds

across all bond segments. The impact on bond portfolios was -15% -10% -5% 0% 5% 10% 15%
so strong that 2022 ended up as the worst calendar year in
history. It was especially true for long-term Treasury bonds 2022 202d
with the 20-Year US government bond losing almost 30% of its
market value while the S&P 500 benchmark index was down
by a little over 19%. The least we can say with such a level of Emerging markets debt, cash & cash plus, and Inflation-Linked
correlation is that bonds were not the reserve assets they used Bonds also showed positive recoveries from their 2022
to be. downturns.

After this descent into hell, investors were logically appre-

Global fixed income ETFs assets cross new milestone
hensive about 2023 against the backdrop of recession fears,
geopolitical tensions, and further rate hikes. Fortunately, every The strong performance of the bond market led to a remarkable
cloud has a silver lining. Despite a high volatility level, with the milestone in 2023, as the primary global fixed income ETF
10-year Treasury yield surging to 5% in mid-October after falling markets reached a record total AUM of $2 trillion, nearly
to 3.25% in early April, the end-of-year rebound allowed it to doubling from its 2019 level of $1.12 trillion. FIGURE 3.2

stabilize at 3.88%, remaining virtually unchanged year-over-

year. Within this growth, the EMEA fixed income market saw its
AUM increase from $268 billion to $435 billion. In comparison,
The prospect of lower rates with Fed officials penciling in 75bp NORAM experienced a surge from $855 billion to $1.59 trillion
cuts by the end of 2024, a resilient American economy and a and has been consistently accounting for 80% of the total
weakening greenback favored the riskiest bond segments over global (ex. APAC) fixed income ETFs assets. FIGURE 3.3

the last two months of 2023, emerging debt included. Even

though not all have recovered from the losses suffered in 2022 Actively managed fixed income ETFs are on the rise, and by
– only high-yield bonds have managed to do so –, the gains 2023, they’ve taken hold in North America, where their share
recorded in 2023 were appreciable, around 9% for investment expanded to 13.4%. This surge isn’t just a flash in the pan; it’s
grade corporate bonds and 11% for high-yield bonds. part of a steady climb that’s seen these ETFs grow on average
FIGURE 3.1 to 11.7% over the last four years.

In the ETF landscape, fixed income ETF segments showed a Over in EMEA, though, things are more even-keeled, with the
strong rebound. Global sovereign bonds returned 4.44%, a share sticking close to 3.6%, signaling a consistent yet more
notable recovery from -3.29% in 2022. subdued interest in these type of products compared to North
America’s incremental embrace. FIGURE 3.4

Global corporate bonds surged to 8.52% from a -9.52% return

the previous year. Investment grade corporate bonds also
Stronger investor appetite
improved significantly, with a 7.80% return compared to -9.52%
in 2022. The milestone setting year for fixed income ETFs can also be
attributed to a heightened level of investor interest, with a
High yield corporate bonds led the pack with a 10.67% return, remarkable influx of $287 billion. This amount surpasses the
bouncing back from -8.83%. preceding four-year average of $246 billion. FIGURE 3.5
 THE GLOBAL ETF SURVEY 2024 FIXED INCOME ETFS 18

Figure 3.2. Global ex. APAC Fixed Income ETFs AUM ($tr) Figure 3.5. Global ex. APAC Fixed Income ETFs Flows ($bn)
Source: Trackinsight Source: Trackinsight

$2 $2 0

$200
$2 0

$1 0
$1

$100

$1 0
$ 0

$0
$0
2019 2020 2021 2022 202

$0 NORAM EMEA
2019 2020 2021 2022 202

Figure 3.3. Global ex. APAC Fixed Income ETFs AUM ($bn) Diving into global flows by segments, global corporate bonds
Source: Trackinsight
experienced a spike in investor interest, with flows increasing
$100 from $33 billion in 2022 to $51 billion.
$1 00
High yield corporate bonds saw a significant reversal, moving
$1 00
from outflows to positive inflows totaling $11.4 billion. Inflows
$1200
for global sovereign bonds stayed consistent year-over-year at
$1000
$156 billion.
$00

$ 00 Segment

$ 00
2023 flows 2022 flows

$200 Global Sovereign Bonds $156.76 $15.3

$0
2019 2020 2021 2022 202
Global Corporate Bonds $51.37 $33.02
NORAM EMEA
Investment Grade Corporate Bonds $C1.12 $CC.16

Figure 3.4. Active Fixed Income ETFs AUM Share of Total Fixed Income High Yield Corporate Bonds $11.C3 ($10.50)
ETFs AUM by Region
Source: Trackinsight Emerging Markets Debt ($0.) ($11.6)
16%
Cash & Cash Plus $C5.37 $C0.7
14%

12% Inflation {inked Bonds ($1.7) ($1C.C6)

10%

8%
However, inflation-linked bonds diverged from this trend, facing
6%
greater outflows of $19.78 billion, up from the previous year’s
4%
$14.46 billion.
2%

0%
2019 2020 2021 2022 202
Product range on expansion mode
While often perceived as less thrilling compared to equities
EMEA NORAM
and emerging assets like cryptocurrencies, ETF providers are
increasingly introducing new fixed income products to meet the
Regionally, NORAM’s fixed income ETFs flows reached $220 dynamic needs of investors across different market cycles.
billion, showing a consistent increase over the past five years,
while EMEA’s flows doubled from the previous year to $67 As of 2023, the total number of fixed income products in North
billion. America and the EMEA region has grown to 2,023, marking a
significant rise from the 1,199 products in 2019. FIGURE 3.6

NORAM’s share of total fixed income ETFs flows remains with a

strong average of about 80.6% over the past five years.
 THE GLOBAL ETF SURVEY 2024 FIXED INCOME ETFS 19

Figure 3.6. Global ex. APAC Number of Fixed Income ETFs

Source: Trackinsight

1,200

1,000

800

600

400

200

0
2019 2020 2021 2022 202

NORAM EMEA

Need the full picture on the evolving market?

Complete, free, up-to-date Trackinsight Industry Data is
just a click away.

Fixed Income ETFs league tables (updated weekly):

Fixed Income ETFs Overview by Region

Top 20 ETF Issuers in Americas by $AUM in Fixed

Income ETFs
Top 20 ETF Issuers in EMEA by $AUM in Fixed Income
ETFs
Top 20 Index Providers in Americas by $AUM in Fixed
Income ETFs
Top 20 Index Providers in EMEA by $AUM in Fixed
Income ETFs
 THE GLOBAL ETF SURVEY 2024 PAGE SECTION NAME 20

Survey results on the topic of

Fixed Income ETFs
73% of investors indicated their interest or current
investment in these ETFs.

Most respondents allocate up to 20% in How much of your portfolio is invested in fixed income ETFs?
Fixed income ETFs 30%

25%

20%

15%

10%

5%

0%
0% 1%-5% 6%-10% 11%-20% 21%-40% More than 40%

Slight preference for using a passive What is your preferred investment strategy in the fixed income ETF
space?
approach when using fixed income
ETFs

24.5%

Passive
Active
45.2%
Both

30.3%

A majority foresee the macro Do you think the macro-economic environment in 2024 will be conducive
to fixed income investing?
environment to be a driver of fixed
income investing for 2024
11.9%

22.7%

Yes
Undecided
No

65.4%
 THE GLOBAL ETF SURVEY 2024 FIXED INCOME ETFS 21

Global consensus for Corporate IG to be Which part of the bond market will play the most important role in 2024
a key markets in 2024 70%

60%

50%

40%

30%

20%

10%

0%
Developed Corporate Corporate Emerging Green SoIialP Other
Market Investment High Yield Market= Sustainable
Government Grade Bonds bonds
Bonds

NORAM EMEA

Sustainable investing with fixed income ETFs

The majority of respondents, at 77.6%, Would you use Fixed Income ETFs to invest sustainably?
express their willingness to use
Fixed Income ETFs for sustainable
investments, while 22.4% indicate they
would not.

0% 20% 40% 60% 80% 100%

Yes No
 THE GLOBAL ETF SURVEY 2024

SECTION 4 ESG ETFS

ESG Polarity
Across the
States and the
Atlantic
 THE GLOBAL ETF SURVEY 2024 ESG ETFS 23

ESG Polarity Across the

States and the Atlantic

The acronym “ESG” stands for environmental, social, Europe still reigns
and corporate governance, introduced by the United
Nations in the 2004 whitepaper titled “Who Cares European investors have consistently led the charge in embrac-
Wins.” ing ESG ETFs, propelled by robust legislative frameworks such
as the SFDR (Sustainable Finance Disclosure Regulation) and a
This document marked a pivotal moment, advocating for the deeply ingrained cultural emphasis on sustainability
integration of these critical factors into financial analysis and .
decision-making. As of 2023, the region holds a commanding lead, accounting for
nearly three-quarters of the global ESG ETF market, with assets
Over the subsequent 19 years, ESG has transformed from a amounting to $402 billion.
niche concept into a core element of business strategy, pervad- Although North America has lagged slightly behind Europe in
ing every industry sector, including financial instruments such the growth of ESG ETF assets, it has still managed to maintain
as ETFs. a strong presence, with total assets currently standing at $131
billion, which is just $10 billion shy of its peak achieved in 2021.

ESG ETFs cross half a trillion in AUM

The trend was supported by an increase in U.S. corporations
In the last decade, ESG ETFs have witnessed extraordinary adopting ESG standards and favorable U.S. government policy
growth, reaching $550 billion in assets under management by changes, making ESG funds more attractive for retirement
the end of 2023. plans.

The most pronounced surge occurred during the pandemic The Asia-Pacific region, though considerably smaller in scale
years of 2020 and 2021, as AUM grew by $335 billion (+275% compared to Europe and North America, has shown notable
compared to 2019 AUM). FIGURE 4.1 growth. From a modest beginning with $385 million in ESG ETF
assets in 2014, the region has expanded its portfolio to $15
billion by 2023.
Figure 4.1. Total ESG ETFs AUM ($bn)
Source: Trackinsight

$00
Proliferation of ESG ETFs
From 2014 to 2023, the number of ESG ETFs globally soared
$00
from 148 to 1,826, highlighting a shift towards sustainable
$400 investment.

$00 The EMEA region led this growth, with ESG ETFs expanding
from 107 to 1,281, demonstrating a strong commitment to ESG
$200
principles.
$100
North America’s ESG ETFs grew from 34 to 430, reflecting a
$- rising interest in sustainable investing, albeit at a slower rate
2014 201 201 201 201 201 2020 2021 2022 202
than EMEA. The APAC region, starting from a smaller base, saw
EMEA NORAM APAC a steady increase from 7 to 115 ESG ETFs. FIGURE 4.2

The recent trend in ESG ETF launches, especially in North

The COVID-19 pandemic greatly propelled ESG investing America, is quite distinctive. Despite a general slowdown in
forward, underscoring the importance of addressing global new ESG ETF introductions in 2023, the sharp decline in North
challenges such as pandemics, climate change, and biodiversity America is particularly striking.
loss.
Following a period of robust growth that culminated in 115 new
This period emphasized the need for a more comprehensive funds in 2021, North America witnessed a precipitous fall to
investment strategy that integrates traditional financial analysis merely 13 new launches in 2023.
with consideration of a company’s wider societal and environ-
mental impact. This downturn contrasts markedly with the previously buoyant
trend and is reflective of broader shifts in investment priorities.
FIGURE 4.3
 THE GLOBAL ETF SURVEY 2024 ESG ETFS 24

accounting for 65% of the total, while NORAM also experienced

Figure 4.2. Number of ESG ETFs
Source: Trackinsight a significant increase with approximately $51 billion.

2,000
However, this upward trajectory in NORAM altered noticeably
in the ensuing years. By 2023, the net flows in NORAM not only
1,500 diminished but also plunged into negative territory, totaling
around -$1.31 billion of net outflows.

1,000 This starkly contrasted with the steady growth in EMEA, which
saw close to $50 billion in net inflows during the same period.
500
This shift overturns the prior assumption that North America
was rapidly climbing and set to surpass Europe in the ESG ETF
0 space. The current trends point to a reassessment of NORAM
2014 2015 201 201 201 201 2020 2021 2022 202
investors’ strategies towards ESG investments, particularly in
EMEA NORAM APAC the United States.

Figure 4.3. Global Net Additions of ESG ETFs

The drop in ESG investing, especially in the U.S. over the past
Source: Trackinsight couple of years, can be traced back to several factors, with a
key one being the increase in anti-ESG legislation mainly driven
by political changes.
400

350

300 This trend began gaining momentum in 2021 andreached new

heights in 2023, with over 150 anti-ESG bills and resolutions
250
introduced across 37 states.
200

150 While many of these bills were either rejected or stalled, by

100 December 2023, at least 40 anti-ESG laws had been passed in
18 states, according to Harvard Law School.
50

0
2015 201 201 201 201 2020 2021 2022 2023
Conservative factions have also initiated boycotts against
brands they view as excessively progressive. This has resulted
EMEA NORAM APAC in considerable opposition to such brands and ESG initiatives
that embrace them.

Flows tell the full NORAM story Investor discontent is a major factor in the declining interest
The full narrative of NORAM investors stance on ESG is clearly in ESG initiatives. There’s a growing preference for strategies
depicted through ETF flow trends, highlighting a marked shift that emphasize financial returns and a profit-centric approach,
away from ESG investments in the region. FIGURE 4.4 leading to less focus on social causes that don’t yield immediate
economic benefits.
In 2020, global net inflows into ESG ETFs surged to $93 billion,
reaching a zenith of $165 billion in 2021. During this peak, the As a result of these dynamics, companies, including ETF issu-
EMEA region contributed an impressive $109 billion in net flows, ers, have begun to dial back conversations about ESG, leading
to a decrease in the promotion of related products and a subse-
quent decline in net inflows into ESG (ETFs) compared to prior
Figure 4.4. Net Flows into ESG ETFs ($bn)
Source: Trackinsight years. FIGURE 4.5

$125 This divergence in investment philosophy allowed ETF issuers

to introduce Anti-ESG funds, which have seen a rise in interest
$100
over the past year.
$ 5
These Anti-ESG funds emphasize a more traditional profit-driv-
$50 en approach, appealing to investors who prioritize financial
returns over broader ESG objectives.
$25

$- While Europe exhibits a less polarized approach to ESG invest-

ing and has largely set a global example in ESG adoption, the
$-25 past few years have witnessed a minor slowdown compared to
2014 2015 201 201 201 201 2020 2021 2022 202
the momentum of 2020 and 2021. Despite significant invest-
EMEA NORAM ment inflows in 2022 and 2023, European interest in ESG has
somewhat tapered due to economic uncertainties, high interest
 THE GLOBAL ETF SURVEY 2024 ESG ETFS 25

Figure 4.5. ESG, DEI and Sustainability Mentions in Earnings Calls Figure 4.6. NORAM Passive vs. Active ESG ETFs Net Flows ($bn)
Source: AlphaSense Source: Trackinsight

1!000 $50
900
800

700 $25
600

500
400
$-
300
200

100
$-25
0 2018 201 2020 2021 2022 202
Q4 2021
Q3 2021
Q2 2021
Q3 2019

Q2 2022
Q4 2018
Q3 2018

Q1 2023
Q1 2021
Q2 2019

Q1 2020
Q2 2018

Q1 2022
Q4 2020
Q3 2020

Q4 2022
Q1 2019

Q3 2022

Q2 2023
Q1 2018

Q4 2019

Q2 2020

Active Passive

Figure 4.7. NORAM Active ETF Share of Total ESG ETFs AUM
rates, inflation, and geopolitical tensions, which may have in-
Source: AlphaSense
clined them toward other investments.
14.0%

Furthermore, the underperformance of certain ESG strategies,

12.0%
particularly in thematic areas like renewable energy, which have
been impacted by surging financing costs, materials inflation, 10.0%
and supply chain disruptions, among other factors, has played
a role in fostering this cautious sentiment. Additional concerns 8.0%
surrounding greenwashing and evolving regulations, encom-
passing issues like fund reclassification and SFDR implemen- 6.0%

tation, have created uncertainty for ESG investors, potentially

4.0%
prompting them to temporarily pause investments until greater
clarity emerges. 2.0%

0.0%
The active approach 2018 201 2020 2021 2022 202

Analyzing NORAM’s net outflows in 2023 reveals a distinct

pattern: $6.6 billion in outflows predominantly came from pas- In Europe, passive ESG ETFs remain the predominant choice
sive funds, while active ESG ETFs were on demand, attracting for investors, holding a significant 94% share of the total ESG
$5.3 billion in new capital. This shift indicates an increasing ETF assets. They also maintain a dominant position in terms of
preference for active management in ESG investing. yearly net inflows.

Investors appear to be moving towards strategies that offer This trend persists despite an overall decrease in the inflows
greater flexibility and alignment with their specific investment into ESG ETFs across the ESG-leading continent. FIGURE 4.8

objectives, diverging from the restrictions often associated with

passive funds.
Figure 4.8. 5 Year-Average of Passive vs. Active Share of ESG ETFs AUM
Source: Trackinsight
To some investors, active ESG investing could offer a more dy-
namic approach, enabling investors to have a potentially greater
social impact and more direct influence on corporate behavior 6%
through activism.

It involves in-depth analysis and engagement with companies in

the form of activism, although it typically incurs higher fees than
Passive
passive strategies. FIGURE 4.6
Active

By the end of 2023, the proportion of actively managed ETFs

within the total ESG ETFs AUM NORAM significantly increased
to 13%, compared to just 3% in 2018. 94%

This marked growth underscores a substantial shift in investor

preference towards active management in the ESG space over
the past five years. FIGURE 4.7
 THE GLOBAL ETF SURVEY 2024 ESG ETFS 26

Need the full picture on the evolving market?

Complete, free, up-to-date Trackinsight Industry Data is
just a click away.

ESG ETFs league tables (updated weekly):

ESG ETF Overview by Region

Top 20 ETF Issuers in Americas by $AUM in ESG ETFs

Top 20 ETF Issuers in EMEA by $AUM in ESG ETFs

Top 20 Index Providers in Americas by $AUM in ESG

ETFs
Top 20 Index Providers in EMEA by $AUM in ESG
ETFs

Survey results on the topic of

ESG ETFs
2/3rd of global respondents do not invest in ESG ETFs, of
which 54.6% because they are not aligned with their
investment objectives.

EMEA respondents showcase How much of your portfolio is invested in ESG ETFs?
diversified allocation profiles to ESG 40%
ETFs

30%

20%

10%

0%
0% 1%-5% 6%-10% 11%-20% 21%-40% More than 40%
 THE GLOBAL ETF SURVEY 2024 ESG ETFS 27

Global ex. NORAM investors seem How do you expect this to change in the next 2-3 years?
optimistic in increasing the share of 50%
ESG focus in their portfolio

40%

30%

20%

10%

0%
Increase by Increase b 5 No change in Decrease by Decrease by Undecided
more than 20% to 20% exposure 5% to 20% more than 20%

Societal convictions stand as the What are your primary reasons for investing in ESG ETFs?
leading reason for ESG investing 80%

60%

40%

20%

0%
Avoid long- Societal Performance Regulatory Company Other
term risks convictions requirements policy

Strong belief in the ESG impact to Do you believe ESG investing will enhance your portfolio’s resilience and
enhance portfolio’s resilience and long- long-term performance?

term performance

27.8%

Yes
No

72.2%
 THE GLOBAL ETF SURVEY 2024 ESG ETFS 28

Environmental and SDG alignment When evaluating ESG-focused investments, what specific ESG factors or
criteria are the most important to you?
factors hold most significance in key
ESG criteria for Global ex. NORAM 80%

respondents
60%

40%

20%

0%
"Environmental Social factors Governance Controversial Alignment Other
factors factors Activities with SDGs
(Sustainable
Development
goals)

Greenwashing risk and inconsistency What are the biggest challenges you face when investing in ESG ETFs?
in ESG analytics continue to pose 70%
challenges
60%

50%

40%

30%

20%

10%

0%
Greenwashing 漀o Lack of ESG ETFs are Too many ESG Other
risk consistency transparency hard to ETFs aNailaKle
across ESG of indices compare (challenging
analysis to screenA

Growing preference for a Passive Do you prefer an active or passive approach when investing in ESG ETFs?
approach over the years

24.3%

Passive
Active
Both are interesting
24.3%
51.4%
We serviced the
first-ever ETF
30 years ago
and we’re continuing to invest in
new technology and people to help
you achieve better outcomes in the
months and years ahead.

statestreet.com/etf

6234575.1.1.GBL.INST
Expiration date: 1/17/2025
 THE GLOBAL ETF SURVEY 2024

SECTION 5 THEMATIC ETFS

Thematic Investing:
The Ebb and Low
Flows
 THE GLOBAL ETF SURVEY 2024 THEMATIC ETFS 31

Thematic Investing:
The Ebb and Low Flows

Reflecting on the COVID-19 pandemic reveals a pro- face of high interest rates, attracting only $6.7 billion in flows to
found disruption that brought both temporary rever- thematic ETFs, a sharp decline from the $14.94 billion seen in
sals and lasting changes to our daily existence. While the previous year.
certain aspects returned to familiar patterns, several
emerging trends have continued to shape our lives. The waning enthusiasm for investment is notably pronounced in
North America, where outflows exceeded $2 billion. This marks
Notably, the persistence of remote work, virtual education, the second consecutive year of negative trends for the region,
telehealth services, and the sustained growth of e-commerce following outflows of $427 million in 2022. In contrast, Europe
underscores the enduring influence of the pandemic on our witnessed $8 billion in inflows, though this figure is significantly
professional, educational, and personal spheres. lower than the inflows seen in the previous three years.
FIGURE 5.1

Thematic investing’s rise amid the pandemic

Investment dynamics were profoundly influenced by the black Figure 5.1. Net Flows into Thematic ETFs ($bn)
swan pandemic event, precipitating a pivot toward longer-term Source: Trackinsight
perspectives, especially within industries poised to benefit from
$ 5
emerging trends, while also being essential for global decarbon-
ization and digitalization. $0

This shift energized thematic investing, underpinned by low $45

interest rates, fiscal stimulus, and an abundance of innovative

$0
investment themes, empowering investors to seize opportuni-
ties arising from these structural trends. $15

In 2021, the nascent investment segment experienced a mete- $0

oric rise, attracting over $100 billion in inflows into themes and
$-15
trends like Net Zero 2050 ($12 billion), China Digitalization ($8.8 2014 2015 201 201 201 201 2020 2021 2022 202
billion), Alternative Energy ($8.5 billion) and Cybersecurity ($4.8
billion) among other. NORAM EMEA

Loss of steam in 2022

In response to unfavorable market conditions, ETF issuers
In 2022, the fervor for thematic investing hit a roadblock as the strategically liquidated underperforming thematic ETFs with
global economy adjusted to the post-pandemic era. Inflation low investor interest, adopting a more conservative strategy for
concerns drove central banks in Europe and North America to introducing new offerings.
raise interest rates, undermining the attractiveness of thematic
investments. This led to a significant drop in total thematic In North America, there were only 5 net additions of thematic
assets. ETFs in 2023, a significant drop from the 86 net additions 2022.
Meanwhile, Europe continued its steady growth, adding 80 new
Remarkably, the European thematic market demonstrated thematic ETFs (net additions), showcasing consistent demand.
resilience when compared to North America. This resilience FIGURE 5.2

can be attributed primarily to the time lag in rate increases by

the European Central Bank, which occurred four months after On the asset side, thematic ETFs saw a resurgence, largely
similar actions by the Federal Reserve. propelled by the impressive performance of their underlying
holdings from cryptocurrency or equities linked to blockchain
Additionally, the energy crisis stemming from Russia’s invasion and AI. FIGURE 5.3

of Ukraine piqued interest in European thematic ETFs, particu-

larly those focused on energy transition, resulting in a substan-
Most popular themes of 2023
tial $15 billion inflow.
Despite the general decline in new investments in thematic
ETFs, specific themes have defied this trend, experiencing a
The 2023 thematic landscape
notable surge in popularity. They include Artificial Intelligence,
In 2023, the appeal of thematic investing waned further in the Big Data, Robotics, and Automation.
 THE GLOBAL ETF SURVEY 2024 THEMATIC ETFS 32

Figure 5.2. Number of Thematic ETFs Figure 5.4. Most popular U.S. Themes by Net Flows ($bn)
Source: Trackinsight Source: Trackinsight

600
Robotics & Automation

500
Nuclear Energy

400 Artificial Intelligence & Big Data

300 Global Infrastructure

200 Net =ero ;:9:

Blockchain
100
Cannabis & Psychedelics
0
2018 201 2020 2021 2022 2023 Emerging Markets Consumer
Gro\th

NORAM EMEA $- $:r9 $wr: $wr9

Figure 5.3. Thematic ETF AUM ($bn) Figure 5.5. Most Popular Themes in EMEA by Net Flows ($bn)
Source: Trackinsight Source: Trackinsight

$00
Net Zero 2050
Climate Change
$20
Artificial Intelligence & Big Data

$200 Nuclear *nergy

Branding and Luxury
$10 Green Projects
Multiple Trends
$100 Robotics & Automation
Circular *conomy
$0 Healthcare Technology &
Innovation
$0 $2 $w $y ${ $~0
$-
2014 201 201 201 201 201 2020 2021 2022 202

EMEA NORAM
Countries such as Japan, China, India, and Turkey have an-
nounced plans to construct 63 new reactors, reflecting a signifi-
This growing interest can be attributed to the significant cant commitment to nuclear energy.
advancements made by OpenAI in November 2022, including
the groundbreaking launch of their advanced Large Language This positive outlook was further reinforced at the COP28
Model (LLM) and ChatGPT. summit, where a coalition of 24 nations endorsed a Ministerial
Declaration advocating for a threefold increase in global nuclear
These innovations have ignited a wave of new developments energy capacity by 2050.
and intensified competition among major technology firms like
Microsoft, Google and other beneficiaries, underscoring the Amid these developments, uranium prices have surged to 15-
potential and significance of AI across various sectors. year highs, further driven by ongoing supply constraints.

As a result, these themes have seen substantial inflows in 2023 These factors, combined with the overarching goals of decar-
of over $2.3 billion in the U.S. ETF market and more than $1.3 bonization and digitalization, have created a favorable land-
billion in Europe. FIGURE 5.4 FIGURE 5.5 scape for the uranium market. This optimistic outlook bodes
well for both the industry and related ETFs.
The nuclear energy theme was also on investors’ radar, attract-
ing nearly $1 billion in new funds in the U.S. and approximately Meanwhile, in Europe, the dominant themes remain Net Zero
$261 million in Europe. 2050 and Climate Change, reflecting a strong societal commit-
ment to environmental initiatives. Combined, they’ve attracted
The surge in interest in nuclear energy can largely be attributed over $10 billion in new investments during the year.
to the promising prospects it offers, particularly in light of the
energy crisis following Russia’s invasion of Ukraine.
Top performing ETFs in 2023
The prevailing sentiment in the global energy market is becom- The surge in stock prices for companies engaged in artifi-
ing increasingly favorable towards nuclear power, a trend under- cial intelligence development and deployment has propelled
scored by the decision to restart and expand nuclear power tech-oriented thematic ETFs focused on this sector to become
plants across the globe. the top-performing themes in 2023.
 THE GLOBAL ETF SURVEY 2024 THEMATIC ETFS 33

Simultaneously, blockchain funds, primarily composed of cryp-

tocurrency miners, have flourished amid the cryptocurrency bull Need the full picture on the evolving market?
market witnessed in 2023. Complete, free, up-to-date Trackinsight Industry Data is
just a click away.
Additionally, ETFs centered on nuclear energy, mainly consist-
ing of uranium miners, have experienced significant growth in
response to the rising prices of uranium. Performance across Thematic ETFs league tables (updated weekly):
various sectors. FIGURE 5.6 FIGURE 5.7

Thematic ETF Overview by Region

Figure 5.6. Top Performing Themes in the U.S.

Top 20 Themes by $AUM in Thematic ETFs
Source: Trackinsight
Top 20 ETF Issuers in Americas by $AUM in Thematic
ETFs
Blockchain 8<%

Top 20 ETF Issuers in EMEA by $AUM in Thematic

Next Generation Internet 80%

ETFs
Metaverse 56%

Top 20 Index Providers in Americas by $AUM in

FinTech 54%
Thematic ETFs
Top 20 Index Providers in Americas by $AUM in
Nuclear Energy 50%

Artificial Intelligence & Big Data 46% Thematic ETFs

Cloud Computing 46%

Gig Economy 48%

Digital Infrastructure &

43%
Connectivity

Figure 5.7. Top Performing Themes in Europe

Source: Trackinsight

Artificial Intelligence & Big Data 5|%

Metaverse 53%

Blockchain 4|%

Nuclear Energy 44%

Ne3t 2eneration Internet 43%

Cloud Computing 40%

Cybersecurity 34%

Robotics & Automation 31%

Digital Infrastructure & 28%
Connectivity
 THE GLOBAL ETF SURVEY 2024 THEMATIC ETFS 34

Survey results on the topic of

Thematic ETFs
68% of investors indicated their interest or current
investment in these ETFs, while 32% have not yet ven-
tured into the thematic ETF space.

Long-term strategic investment What are your primary reasons for investing in Thematic ETFs?
dictates thematic investment in 70%
portfolios, yet thematic products
are versatile enough to meet various 60%

investment goals
50%

40%

30%

20%

10%

0%
Tactical short- Strategic long- Diversification High Conviction Other
term bet term bet

Low to moderate allocation on Thematic How much of your portfolio is invested in thematic ETFs?
ETFs within respondents portfolio 50%

40%

30%

20%

10%

0%
0% 1%-5% 6%-10% 11%-20% 21%-40% More than 40%

NORAM EMEA

Global anticipated growth in thematic How do you expect this to change in the next 2-3 years?
ETF investments, with NORAM 70%
expectations higher, looking to catch up
60%
on allocation to thematic against EMEA
50%

40%

30%

20%

10%

0%
Increase by Increase by No change in Decrease by Decrease by Undecided
more than 5% to 20% exposure 5% to 20% more than
20% 20%

NXYAM EMEA
 THE GLOBAL ETF SURVEY 2024 THEMATIC ETFS 35

While mostly used for strategic long- Regarding the portfolio construction, do you use Thematic ETFs primarily
as a core or satellite exposures?
term investment, Thematic ETFs
are widely considered as a satellite 100%

exposure
80%

60%

40%

20%

0%
Core Satellite

NORAM EMEA

Differences arise in the selection What do you consider to be the most important criteria when selecting a
Thematic ETF?
criteria focus per region
70%

60%

50%

40%

30%

20%

10%

0%
ETF Issuer Index Risk- Costs (TER, ETF MiHe Diversification Other
provider/ Return trading (AUM) power (low
methodology profile fees,…) correlation
(i.e. holdings with standard
diversificati indices)
on)

NORAM EMEA

Pronounced discrepancies by region What trends are you currently invested in, or interested to invest in?
around thematic trends on Investors’ 70%
radar influenced by regional economic,
60%
regulatory and cultural contexts
50%

40%

30%

20%

10%

0%
Disruptive Climate Digita! Alternative Emerging Other
technology change infrastructure energy market
& connectivity awakening

NORAM EMEA
 THE GLOBAL ETF SURVEY 2024

SECTION 6 CRYPTO ETFS

Sunshine Hopes
for the Crypto
Winter
 THE GLOBAL ETF SURVEY 2024 CRYPTO ETFS 37

Sunshine Hopes for the

Crypto Winter

While various forms of crypto ETPs have been available Bitcoin ETFs was marked by a strong trading volume, with the
in different jurisdictions, the anticipation of the first day of trading seeing an astonishing $4.6 billion, followed
approval of the first U.S. Spot Bitcoin ETFs was a focal by another substantial $3 billion on the second day, according
point and dominated the ETF industry news for the to data provided by the respective exchanges. FIGURE 6.2

majority of the year. FIGURE 6.1

Figure 6.2. U.S. Spot Bitcoin ETF Volumes Opening Week ($bn)
Figure 6.1. Articles on “Spot Bitcoin ETFs” Source: Trackinsight
Source: Muck Rack
$5.00
150,000

$.00
125,000

$.00
100,000

$ .00
75,000

$1.00
50,000

$0.00
25,000
11. Jan 1 . Jan

0 GBTC IBIT FBTC ARKB BITB 5 Others

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While the story ultimately had a happy ending, the journey

This pivotal moment materialized against a backdrop of was bumpy due to preceding series of fraudulent events in the
increasing filings for these products, which peaked with the crypto sector that almost derailed the progress.
entry of the largest asset manager, BlackRock, in June 2023.
Notably, BlackRock’s involvement was somewhat unexpected,
The 2022 bloodbath
as the company’s leadership was skeptical of crypto in prior
years. In 2022, the cryptocurrency market embarked on a tumultuous
journey, characterized by considerable fluctuations driven by
BlackRock’s involvement sent a clear signal to many that the economic factors like rising interest rates and global monetary
long-awaited approval was likely guaranteed, given the compa- policy shifts triggered by inflation.
ny’s immense stature and an almost flawless track record of
successful filings. This volatility was further intensified by the collapse of the FTX
crypto exchange in November 2022, which not only shattered
On January 10, 2024, the U.S. Securities and Exchange investor confidence but also exposed vulnerabilities within the
Commission (SEC) finally granted approval for the very first spot crypto ecosystem.
Bitcoin ETFs.
According to the FT Digital Assets dashboard, over 2022 Bitcoin
The decision marked the culmination of a decade-long saw a staggering 65% drop in value, with Ethereum closely
tug-of-war between ETF providers and the regulatory body, mirroring this decline in a 68% slump. The total cryptocurrency
signifying the dawn of a new era in financial innovation within market cap tumbled from its November 2021 peak of nearly
the ETF sector, with a particular focus on the United States. $3.2 trillion to $830 billion by the close of 2022.

This milestone represents a significant triumph for the crypto-

The 2023 resurgence amidst lingering challenges
currency sector. It now enables professional U.S. investors
to engage with the largest cryptocurrency via an ETF format. In 2023, cryptocurrency faced increased regulatory scrutiny
This development mirrors a similar historical moment in the following the FTX scandal, impacting major players like Binance
commodities market: the introduction of Gold ETFs in 2004, and Kraken. Coinbase engaged in a legal battle with SEC, while
which significantly expanded access to the precious metal. Binance’s CEO resigned amid allegations of unlicensed money
transmission.
On January 11, 2024, the market debut of the 10 approved spot
 THE GLOBAL ETF SURVEY 2024 CRYPTO ETFS 38

These events underscored the mounting regulatory pressures from $275.8 million in 2018 to $14.5 billion in 2023.
on prominent cryptocurrency entities, emphasizing the urgent
necessity for comprehensive industry regulations. In EMEA, crypto ETPs AUM soared from $276 million in 2018 to
an impressive $8.7 billion in 2023, with some fluctuations along
BlackRock’s participation in the spot Bitcoin ETF race rekindled the way. FIGURE 6.4

confidence in the crypto market, sparking a positive upward

momentum in prices.
Figure 6.4. Crypto ETPs AUM ($bn)
Source: Trackinsight
Moreover, improved market conditions, including signs of
easing inflation and hints at potential interest rate cuts by the $12

Fed, played a significant role in reversing the damage from the

$10
previous year. FIGURE 6.3

$8

Figure 6.3. “The Spot Bitcoin ETF” Trend on Google $

Source: Google Trends
$
110

100
$2
90

80 $-
2018 201 2020 2021 2022 202
70

60
NORAM EMEA
50

40

In North America, the crypto ETF story took off in 2021 with the
30

20
debut of the first Spot Bitcoin ETF in Canada — the Purpose
10
Bitcoin ETF.
0
23

3
3
23

3
3
3

23
2

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Furthermore, the launch of the ProShares Bitcoin Strategy ETF

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($BITO), the first Bitcoin-linked fund in the U.S., later in the

same year, marked a significant milestone.
Bitcoin ended 2023 as its most successful year since 2020, with
a remarkable 155% comeback, concluding the year at just below The remarkable success of these products propelled North
$42,000 and boasting a market capitalization of $825 billion. America’s cryptocurrency ETF landscape to a stature on par
with Europe’s, underscoring a pivotal development in the
Ethereum charted a parallel trajectory, recovering by 90%. region’s financial innovation.
Impressively, the total cryptocurrency market cap rebounded,
concluding the year at $1.67 trillion, despite the persistent Consequently, NORAM’s total crypto ETF assets for that year
regulatory hurdles and uncertainties. amounted to $5.9 billion. Despite the dip in 2022, it rebounded
to $5.7 billion by the end of 2023.
As a result, the overall crypto market boom in 2023 was
mirrored in the ETP market across different zones, where On the flow side globally, crypto ETPs investors added $2.5
cryptocurrencies emerged as the top-performing asset class billion in 2023 compared to $393 million in 2022.
with returns exceeding +130%.
Regionally, EMEA’s crypto ETPs inflows jumped from $26 million
in 2022 to over $1 billion in 2023, while NORAM experienced an
Global crypto ETPs landscape
increase from $289 million to nearly $1.6 billion in new capital.
Rising optimism surrounding the future of cryptocurrencies and FIGURE 6.5

their increasing acceptance among professional and institutional

investors has generated substantial interest in crypto ETFs. Large inflows recipients in 2023 include BITO, which saw its
The ETF wrapper provides convenient means to access digital AUM soar to $1.7 billion after a surge in Bitcoin futures prices
currencies. and attracting over $568 million in new inflows.

The interest in crypto funds holds the potential to channel a Meanwhile, in Canada, the Purpose Bitcoin ETF also achieved
fresh wave of assets into the ETF arena, in harmony with other substantial success, garnering $480 million in inflows and
influential strategies like active approaches in North America closing 2023 with a total of over $1.5 billion in assets spread
and ESG initiatives in Europe, both of which have proven across its various ETF shares.
effective in attracting new capital to this landscape.

Global crypto ETPs ranges

Despite the dip in 2022, the global crypto ETP AUM exhibited
significant growth over the past 5 years, with a notable increase By year-end 2023, Europe boasted 119 crypto ETPs, while
 THE GLOBAL ETF SURVEY 2024 CRYPTO ETFS 39

Canada featured 31 ETFs, and the United States had 18.

Need the full picture on the evolving market?
Complete, free, up-to-date Trackinsight Industry Data is
Figure 6.5. Crypto ETPs Net Flows ($bn)
just a click away.
Source: Trackinsight

$.00
Crypto ETFs league tables (updated weekly):
$.00

$.00
Crypto ETFs Overview by Region
$.00
Top 3 Cryptocurrencies in Americas by $AUM
$.00
invested through ETFs
$2.00
Top 17 Cryptocurrencies in EMEA by $AUM invested
$1.00 through ETFs
$-
Top 13 ETF Issuers in America by $AUM in Crypto
$-1.00 ETFs
2018 201 2020 2021 2022 202
Top 13 ETF Issuers in EMEA by $AUM in Crypto ETFs
EMEA NORAM

After experiencing a surge in new launches in 2021 and 2022,

the global count of crypto ETPs temporarily plateaued in 2023
as issuers took a breather due to market volatility.

Nonetheless, during this period, over a dozen spot Bitcoin ETF

filings were submitted in the U.S. — some of them are now
actively trading. FIGURE 6.6

Figure 6.6. Number of Crypto ETPs

Source: Trackinsight

140

120

100

80

60

40

20

0
2018 201 2020 2021 2022 202

EMEA NORAM

The U.S. approval of spot Bitcoin ETFs and possible institutional

adoption could encourage the SEC to further relax its stance,
potentially clearing the path for other cryptocurrency spot ETFs
like Ethereum, already in the filing stage.

This marks a notable shift in the regulatory framework, opening

up new avenues for the growth of cryptocurrency investment
vehicles.
 THE GLOBAL ETF SURVEY 2024 CRYPTO ETFS 40

Survey results on the topic of

Crypto ETFs
The Crypto dilemma

Most investors remain hesitant about Current investment or interest in crypto ETFs
allocating to the nascent asset class

41%
No
Yes

59%
 THE GLOBAL ETF SURVEY 2024

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