Trendscout news issue 18 - Rising interest in Factor ETFs

14. März 2018

Rising interest in Factor ETFs

In particular, momentum-driven ETFs have gained attention from investors in recent weeks.

Interest in Factor ETFs has increased steadily over the past two years, although overall market share remains modest. A glance at the factors shows that over the course of the past quarters, momentum-driven ETFs from Blackrock, Deutsche Bank and BNP Paribas have gained interest in particular, and despite some market jitters this has even accelerated in recent weeks. The demand has come mainly from German, Italian and Swiss investors.

Interest for products on more traditional factors such as small caps, value and growth has hardly changed.

As far as the quality factor is concerned, there is a differentiated picture: overall, demand for both quality in general and similar factors such as high dividend or low volatility tended sideways. Some of the products, however, registered increased interest: an ETF with a classic approach to high dividend, the Vanguard FTSE All-Wrld High Div. Yield UCITS ETF and the more recently launched Two-factor ETFs, iShares MSCI World Quality Dividend UCITS ETF and PowerShares EURO STOXX High Di Low Vol UCITS ETF.

Document downloads for Momentum ETFs as a percent of all downloads for passive funds over 2 years within European and Asian sales channels

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Other Trendscout highlights

  • BlackRock US Flexible Equity becomes very popular within Belgium
  • After a long period of decline, demand for high yield has recovered in recent weeks
  • Flexibly managed fixed income funds have also seen a significant upturn in interest since early February

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Categories gaining attention

  • Equity USA
  • Equity World Emerging Markets
  • Equity World

Categories losing attention

  • Bond World Aggregate
  • Equity Switzerland
  • Equity Technology

Funds gaining attention

  • AXA World Funds - Framlington Robotech
  • GAM Multibond - Local Emerging Bond
  • JPMorgan Global Macro Opportunities
  • db x-trackers MSCI Wld. In. UCITS ETF
  • Fidelity European Dynamic Growth Fund

View our Trendscout tutorial video

Trendscout is a self-service fund analytics web application developed and licensed by fundinfo. It measures investor’s interest in funds based on online views of our 25+ million fund documents database. For a quick introduction to the features and benefits of Trendscout, click here to view a tutorial video.

With Trendscout, you can:

  • Identify the source of interest in your funds based on investor domicile or sales channel
  • Analyse the results of your marketing activities by region
  • Compare the interest in your funds with each other, or with your competitor’s funds
  • Examine the interest in individual funds or fund categories over time

For additional details, visit the Trendscout website, or download the flyer.