The Markets January 24, 2011

U.S. ETF Assets had Record Year

Exchange-traded fund (ETF) assets reached a record $995 billion in the United States at the end of 2010, according to State Street Global Advisors.
Reported by

Net new inflows exceeded $100 billion for the fourth consecutive year, the report shows.  Exchange-traded fund investors distributed their investments across several asset classes including fixed income, international, dividend and commodities during the year.  

“As awareness of core benefits of ETFs grows, they are becoming the preferred choice of a growing number of institutional, professional and retail investors,” said Tom Anderson, global head of ETF strategy and research at State Street Global Advisors.  “Looking ahead to 2011, we expect to see investors increase their exposure to non-correlated asset classes and high dividend paying stocks using ETFs to implement strategies designed to improve their risk-return profile and generate a steady source of income amid an improving economic backdrop.”   

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Among the themes highlighted in the report, SPDR ETF Outlook?Taking Aim at 2011, are: 

  • Continued growth of ETF industry assets; 
  • Insights into how investors are evaluating ETFs; 
  • Implications of the Flash Crash; 
  • Potential growth of non-US exposure in investor’s portfolios; and  
  • Outlook for dividend, actively managed, and “real assets” ETFs in 2011.  

The report can be downloaded from http://www.spdru.com.  A free registration is required.

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