ETFs with higher AuM than Hedge Funds

The wealth invested in Exchange Traded Funds surpasses the assets under management of hedge funds. At the end of this year’s second quarter, 2,971 trillion US-Dollar were invested in ETFs, says data from ETFGI.

Exchange Traded Funds (ETFs) have received inflows of 45 billion US-Dollar or 41 billion Euro in 2015’s second quarter, says ETFGI. With those inflows, the amount of money invested in ETFs increases to 2.971 trillion US-Dollar or 2.733 trillion Euro accordingly.
According to Hedge Fund Research, hedge funds have achieved 30 billion Dollar (27.6 billion Euro). The assets under management have thus increased to an amount of 2.969 trillion Dollar (2.731 trillion Euro).

This increase is due to the attractiveness of ETFs: “Hedge funds do not offer daily liquidity, transparency and they are typically expensive,” says Deborah Fuhr, managing partner at ETFGI, in the financial times. “The alternative is ETFs that track various benchmarks and have intraday liquidity, low fees, daily transparency and low minimum investment size.”

Moreover, the ETFs could achieve a higher performance than hedge funds did on average. While the S&P 500 increases by 13.69 percent in 2014, the HFRI Fund Weighted Index, which tracks hedge fund performance, have gained only 3.3 percent.