The Global X Research Team is pleased to announce the March 2024 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 – March 2024 Key Takeaways
- Assets under management (AUM) of U.S. listed, derivative strategy ETFs rose to $131B at the end of March 2024, representing a quarterly 1-year growth rate of 77%.1 This trajectory has been supported by a 39% increase in the number of derivative-based funds in operation over that time frame, to 424.2
- In the first quarter, momentum in flows picked up, sequentially, to about $13.1B.3 This reflected sharp appreciation in flows geared toward the Derivative Income investment objective, which helped offset a decline and deceleration of Performance Enhancement and Risk Management flows, respectively.4
- Derivative ETFs with a Risk Management investment objective were able to generate improved assets under management despite fund flows decelerating relative to the fourth quarter of 2023. Indeed, with Collar, Inflation Hedge, and Spread strategies all experiencing weakening or negative flows, quarter to quarter, it seems likely that most of the assets gathered within this portion of the space stemmed from market price appreciation rather than new asset acquisition.
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