Monthly Derivative Strategy ETF Commentary

The Global X Research Team is pleased to announce the first release of the Derivative Strategy ETF Report where we intend to highlight the continuous growth of derivative oriented strategies implemented within the ETF structure. This is the current release of the August 2023 edition. The key takeaways below and within the report recap Global X’s classification system for the derivative strategy ETF landscape and provides industry-level analysis of derivative strategy ETF investing where we look at changes in assets under management (AUM), and fund flows to signify potential trends.

Derivative Strategy ETF Landscape – August 2023 Key Takeaways
 

• The assets under management (AUM) of U.S. listed, derivative strategy ETFs grew to $95.9B at the end of August 2023, representing 1.3% of the entire U.S. ETF landscape’s $7.4T in total AUM.¹ With a compound annual growth of 110% in AUM from August 2018 to August 2023, this corner of the U.S. market has more than doubled in size over the last 5-years.²
• During August 2023, derivative strategy ETFs took in net new assets of $3.8B during August 2023, a 4% organic growth rate.³ This is compared to $16B in net new assets of all U.S. domiciled ETFs.⁴ A strong trend, this equates to derivative strategy ETFs representing roughly 24% of all net flows into U.S. listed ETFs over the course of August.⁵
• Year-to-date, as of August 2023, derivative strategy ETFs have seen an organic growth rate of 46% with $29B in net new assets.⁶ This is compared to the 4% organic growth rate of the total U.S. ETF landscape, signifying that this category of ETFs is driving a significant portion of continued industry growth.⁷