The Global X Research Team is pleased to announce the September 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 – September 2023 Key Takeaways
- Assets under management (AUM) of U.S. listed, derivative strategy ETFs rose to $96.4B at the end of September 2023, representing a 1-year growth rate of 85%.1 This trajectory has been supported by a 33% increase in the number of derivative-based funds in operation over that time frame, to 363.2
- In September, momentum in flows slowed for the second-consecutive month, to about $3.56B.3 This reflected a negative trend maintained for the Risk Management investment objective and an outflow for the Performance Enhancement investment objective.4 New assets in Derivative Income strategies increased 5%, however, to $2.63B.5
- Year-to-date, as of September 2023, derivative strategy ETFs have seen an organic growth rate of 48%, with $32.6B in net new assets.6 This advance has been driven by contributions across all three primary option objectives, with Derivative Income leading the way experiencing $25.2 billion in fund flows.7
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