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

ETF
+ Zoom
Investors still rattled by visions of this

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

Latest news & opinion

Advisers go on the offensive, getting clients ready for the next market correction

Some proactive planners are spelling out for clients the impact of a 10% or 20% correction.

Acosta declines to extend delay of DOL fiduciary rule

Labor Secretary finds no legal basis to delay implementation; rule to become applicable June 9

Phyllis Borzi says opponents of DOL fiduciary rule face uphill climb to further delay or dilute it

Former assistant Labor secretary who crafted the rule says President Trump won't be able to get rid of it simply because he doesn't like it.

Shrinking talent pool puts strain on advisory firms

Attrition, cuts in training programs and new competition make it difficult to fill job openings

Trump miscues, more cash becoming available will drive summer muni bond rally

As Trump agenda derails, municipal bonds are benefitting from flight to safety as well as a mismatch between bonds maturing and new issues.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print