According to a study conducted by BlackRock, assets in US listed ETFs and exchange traded products surpassed $1 trillion for the first time on Thursday.
Over the past year, ETFs have truly penetrated the investment world as both retail and institutional investors have turned to them to access hard to reach markets and add diversification to portfolios. At the end of 2009, there were 772 US listed ETFs with assets of $705.5 billion from 29 different providers being offered on two exchanges. So far, this year, 171 new ETFs have been launched in the US, 828 remain in the pipeline and 49 have been delisted. As a result, there are currently 894 ETFs with assets of $887.2 billion from 28 providers on two exchanges and 185 ETPs, which includes ETNs, with assets of $115.5 billion from 20 providers on one exchange.
In regards to market cap and trading volume, the SPDR S&P 500 (SPY), the Financial Select Sector SPDR (XLF), the PowerShares QQQ (QQQQ) and the iShares MSCI Emerging Markets Index (EEM) remain the largest ETFs that are the most actively traded.
As for the future of ETFs and ETPs, the outlook remains bright as more and more investors educate themselves on the benefits and downfalls of these investment tools which continue to try to gobble up market share from mutual funds.
Disclosure: No Positions