Global ETF, ETP assets reach $1.95 trillion

Global assets invested in exchange traded funds (ETFs)and exchange traded products (ETPs) hit an all-time high of $1.95 trillion at the end of 2012.

According to figures from ETFGI’s monthly Global ETF and ETP industry insights, ETF and ETP assets increased by 27.6% from $1.53 trillion to $1.95 trillion during 2012.

The 10 year compounded annual growth rate of global ETF and ETP assets at the end of 2012 was 29.6%. There are currently 4,731 ETFs and ETPs with 9,710 listings, assets of $1.95 trillion, from 208 providers on 56 exchanges.

The largest provider is iShares with $760bn assets and a 39.0% market share; SPDR ETFs is second with $337 billion and 17.3% market share, followed by Vanguard with $246 billion and 12.6% market share.

These top three ETF/ETP providers, out of 208, account for $1.34bn or 68.9% of global ETF/ETP assets, while the remaining 205 providers each have less than 4% market share.

The top 3 providers of ETFs/ETPs accounted for $179.5 billion, or 67.6%, of all net new assets gathered in 2012. iShares gathered the largest net new ETF and ETP inflows in 2012 with $87bn, followed by Vanguard with $54.2bn and SPDR ETFs with $38.3bn net inflows. All three gathered significantly more net new assets in 2012 than in 2011.

Equity focused ETFs and ETPs gathered $167.3bn, an increase of 84.5%, or $76.6bn, on 2011 net new assets. Products providing exposure to US/North American equities have been the most popular receiving $78.3bn, followed by emerging market equities with $54.3bn.

Fixed Income ETFs and ETPs have proven to be popular tools this year with $62.9 billion in net new assets, an increase of $17.5bn, or 38.5%, on 2011 levels.

Corporate bond products have gathered the largest net inflows with $24.7 billion, followed by high yield with $14.7bn.

Commodity flows at $23.1bn are 52.4% higher than 2011 net inflows of $15.1 billion. Precious metals have been the most popular gathering $20.3bn, while agriculture experienced the largest net outflows with $1.5bn.

“The uncertain and challenging market conditions investors have faced during 2012 and over the past few years, combined with the difficulty in finding active managers that consistently deliver alpha, have caused more institutional investors, financial advisors and retail investors to embrace the use of ETFs and ETPs for strategic and tactical asset allocations,” said Deborah Fuhr, Managing Partner at ETFGI.

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