ETF Assets Outperform Hedge Funds by $4.6tr | Paragon Alpha

ETF Assets Outperform Hedge Funds by $4.6tr

By Matea Gucec

According to data from ETFGI and HFR, the global ETFs sector increased its lead over the worldwide hedge fund business by US$4.57 trillion at the end of Q3 2022. ETFGI is a major independent research and consultancy organization analyzing trends in the global ETFs and ETPs ecosystem. (Unless otherwise specified, all dollar amounts are in USD.)

At the conclusion of Q3 2022, assets invested in the worldwide ETFs business had a $4.57 trillion advantage over assets invested in the global hedge fund industry.

During Q3 2022, the global ETFs business saw net inflows of $129.9 billion while the global hedge fund industry saw net withdrawals of $26 billion.

At the conclusion of Q2 2015, as predicted by ETFGI, assets invested in the global ETFs sector first surpassed those invested in the global hedge fund industry. Since the 2008 financial crisis, the industry for exchange-traded funds (ETFs) has seen asset growth outstrip that of the hedge fund sector. At the end of Q3 2022, there were $8.35 trillion invested in 10,763 products listed globally, according to ETFGI's data, compared to $3.78 trillion invested in 9,163 hedge funds globally, according to a study by HFR.

According to the ETFGI's Global ETF and ETP industry insights report, the global ETFs industry saw net inflows of $129.9 billion during the third quarter of 2022. HFR, however, noted that in Q3 2022, hedge funds experienced net outflows of $26 billion.

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