Uncertainty a definite plus for ETFs as assets hit record

Nearly $188B in net inflows in 2012; tactical, strategic

Jan 4, 2013 @ 10:45 am

By Jeff Benjamin

The exchange-traded-funds industry is enjoying a boost in its popularity, thanks to growing levels of political and economic uncertainty, according to the latest report from ETFGI LLP.

The research firm said assets in exchange-traded products listed in the U.S. set a record in 2012 of $1.35 trillion, a 27% increase over 2011.

The increase was a combination of market performance and record net new assets of $187.2 billion, which compares with $118.4 billion in 2011.

The previous record from net inflows was $176 billion in 2008.

“The flow data is a very good indicator of how investors are tactically and strategically adjusting their allocations to political, economic and other uncertainties that are impacting markets,” said ETFGI managing partner Deborah Fuhr.

The record-level flows, she added, “show that these products are increasingly being embraced by institutional investors, financial advisers and retail investors for strategic and tactical asset allocations.”

There are 1,447 exchange-traded products offered by 53 providers and three exchanges, yet the top three providers continue to dominate the industry.

BlackRock Inc.'s iShares, State Street's SPDR ETFs and The Vanguard Group Inc. combined to account for $151.4 billion, or 81%, of net new assets in 2012.

Broken down, iShares gathered in $62 billion, followed by Vanguard at $53.4 billion, and SPDR with $36 billion in net inflows.

Equity ETFs accounted for $121.5 billion of the total net inflows, followed by fixed-income at $46.3 billion and commodity ETFs with net inflows of $13.7 billion.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

INTV

Children of AI, and when they are coming to financial advice

Technology reporter Ryan Neal talks about the tremendous progress in artificial intelligence in other industries, and how its applications are slowly making headway in the advice sector.

Latest news & opinion

SEC advice rule hearing updates

Commission says a lot of work ahead, public will have 90 days to comment.

SEC advice proposal unveiling: Here's what to expect

Chairman Jay Clayton will initiate momentous action Wednesday, as the commission meets to debate a rule on broker and adviser standards.

How active are the largest actively managed funds?

Active-share measures for the 15 largest actively traded mutual funds.

Morgan Stanley's success looks long in the tooth to analyst

Sanford C. Bernstein & Co. analyst Christian Bolu, concerned over stalled adviser growth and what it means for lending and deposit growth, believes the stock will "under perform."

Retirement coverage gap, 401(k) rollovers are big emerging threats for plan advisers

Proliferation of state retirement programs approaching the 'tipping point' where it will lead the federal government to step in.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print