The Global X Research Team is pleased to announce the November 2023 release of the Derivative Strategy ETF Report, in which we seek to examine the continuous growth of derivative-oriented strategies implemented within the ETF structure. The key takeaways below, as well as those highlighted within the report, recap Global X’s classification system for the derivative strategy ETF landscape. They also provide industry-level analysis of derivative strategy ETF investing through an investigation of changes in assets under management (AUM) and fund flows that signify potential trends.
Derivative Strategy ETF Landscape – November 2023 Key Takeaways
- Assets under management (AUM) of U.S. listed, derivative strategy ETFs reached a key milestone, surpassing $100B for the first time and rising to $107B at the end of November 2023.1 This represents a 1-year growth rate of 74.2%.2 Growth has been supported by continued demand for Derivative Income, and for Buywrite strategies in particular, which accumulated an additional $1.7B in net new assets in November.3
- The momentum of flows into Risk Management ETFs slowed, with monthly inflows falling from approximately $2B in October to $1.4B in November.4 This is reflective of a potential shift in market sentiment, as October ended with declines in major U.S. equity indexes amidst rising long-term rates and concerns surrounding heightened geopolitical risks. In contrast, U.S. equities saw substantial growth in November, with the S&P 500 closing the month up 9.13% on a total return basis.5
- Derivative strategy ETFs brought in $3.6B in net new assets in November, bringing the year-to-date total to $40.3B.6 This represents an organic growth rate of 64.4%, which has been supported by contributions from all three of the primary derivative objectives.7 Derivative Income has been the largest contributor, with $29.2B in net new assets this year.8
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