The first quarter of 2018 posted a strong investor demand for ETFs, generating a net value of approximately $62.83 billion. This was primarily driven by the World Equity ETF, which had an inflow of $39.85 billion and the Taxable Bonds ETF, which generated approximately $14.98 billion. Also, all the ETFs generated an inflow of varying amounts, with none of them posting outflows.

The net equity ETF issuances during the first quarter of the year amounted to roughly $43.14 billion, with both domestic and world equity generating inflows. However, the demand was evidently higher for the world equity ETF as it generated $39.85 billion as opposed to the domestic equity ETF, which had only generated about $3.29 billion. The world equity ETF inflow resembled the past quarters inflows, however, the major difference stemmed from the decreased demand in domestic equity ETF since the previous quarter posted an inflow of approximately $78.9 billion.

Net hybrid ETF issuance was approximately $712 million, slightly lower than the previous periods net issuance of $726 billion.

Fixed Income ETFs (Taxable and Municipal) generated an inflow of approximately $15.67 billion, with majority of this demand being driven by the Taxable Bonds, as the ETF had generated $14.98 billion. The fixed income ETFs did generate lower demand in comparison to the previous quarter, where inflows amounted to nearly $21.32 billion.

Commodity ETFs had a turnaround in the demand as it posted a large investor interest, generating $3.3 billion in the first quarter. The previous quarter in 2017 had on outflow of more than $1.7 billion.

Overall, the first quarter of 2018 accumulated promising interest from investors, generating inflows in all the respective ETFs. A net of approximately $62.83 billion was generated, from which roughly 87% was driven by the world equity ETF and the Commodity ETF.


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