Global ETFs exceeded $1.4trn in H1 2011

The ETF market reached $1.4trn at the end of the first half as ETF growth continued, according to BlackRock’s Industry Review H1 2011.

At the end of June 2011, the global ETF industry had 2,825 ETFs with 6,229 listings from 146 providers on 49 exchanges around the world.

This compares to 2,459 ETFs with 5,554 listings from 136 providers on 46 exchanges at the end of 2010. Assets increased from $1.3trn at the end of 2010 to more than $1.44trn at the end of the first half of 2011.

Global ETF new fund flows totaled $62.8bn this year to the end of May; while flows for the whole of 2010 stood at $172.8bn.

This growth is attributed to a number of factors, including the number and types of indexes covered, more fund platforms embracing ETFs, the growing number of exchanges planning to launch ETF trading segments and regulatory changes across the globe that allow funds to make larger allocations to ETFs.

Sources of future growth include the fact that 55% of institutions that employed ETFs expected their usage of the product to increase. The surveys of money mangers were even more positive, with approximately 65% expecting to devote more assets to ETFs, compared with half of plan sponsors.

BlackRock is optimistic regarding the future growth of ETFs and other exchange-trade products. It expects ETPs to increase by 20-30% annually over the next few years, taking the global ETP industry to approximately US$2trn in assets under management by early 2012, with the ETF industry alone reaching the same figure by the end of the year.


This article first appeared in Global Pensions.

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