Bull market steers ETF assets to big gains

Net inflows across the board from stocks to bonds as advisers use funds for core, tactical plays
MAY 06, 2013
The roaring pace of the equity markets has helped drive total exchange-traded-fund assets up 23% over the past 12 months. The latest data from the Investment Company Institute shows that through April, domestic-equity-ETF assets reached more than $854 billion, up from $696 billion 12 months earlier. International-equity ETF assets topped $355 billion, from $280 billion a year ago, and bond ETFs topped $258 billion, up from $208 billion a year ago. “This kind of growth is a combination of the market being up strongly, and also reflects investor adoption of ETFs,” said Todd Rosenbluth, director of ETF research at S&P Capital IQ. For April, the value of ETF gross issuance ($108 billion) exceeded gross redemptions ($98.8 billion) by $9.7 billion. “We're seeing investors use ETFs more, and we're seeing more advisers and investors use ETFs both as core and in a more-tactical way to diversify a portfolio,” Mr. Rosenbluth added. “The ETF growth trend is a higher rate than you will see in mutual funds, particularly in domestic-equity funds, where the rate has slowly moved back, but not at this kind of pace.”

Latest News

RIA moves: The Mather Group, Brand Asset Management announce deals
RIA moves: The Mather Group, Brand Asset Management announce deals

Consolidation continues in US wealth management industry.

US broker-dealer fintech aims for global footprint as it acquires international firm
US broker-dealer fintech aims for global footprint as it acquires international firm

Tech company democratizes access to US trading infrastructure.

Advisor moves: RBC swipes $1.7B UBS team, Baird duo departs for LPL's Linsco channel
Advisor moves: RBC swipes $1.7B UBS team, Baird duo departs for LPL's Linsco channel

RBC Wealth Management's latest move in New York adds an elite eight-member team to its recently opened Westchester office.

Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints
Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints

Stifel – so far - is on the hook for more than $166 million in damages, legal fees and settlements in investor complaints involving Roberts, a 35-year industry veteran.

iCapital secures $820M in latest funding, hits $7.5B
iCapital secures $820M in latest funding, hits $7.5B

The giant alt investments platform's latest financing led by T. Rowe Price and SurgoCap Partners, along with State Street, UBS, and BNY, will fuel additional growth on multiple fronts.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.