January 7th, 2012
Econintersect: The total dollar amount invested in ETFs (exchange traded funds) has doubled over the past three years but the rate of growth has slowed during that time and almost came to a standstill in 2011. The dollar value invested in ETFs at the end of last year stood at $1.06 trillion, up 5% from $1.01 trillion at the end of 2010. The amount invested in Global and International stock ETFs actually declined by almost 14%, as European and Asian stocks performed much more poorly than other areas of the market. Of the largest dollar amount categories the big winner was Fixed Income, up almost 35% as bonds soared.
Follow up:The growth in ETFs has been one of the major stories in investment history. Eleven years ago, at the end of 2000, only $66 billion was invested in ETFs. That means that the category has grown by 1,506% over eleven years, or a compounded average annual growth of 29% a year. The average annual growth over the last three years, including 2011, was 24%. That puts the 5% growth in 2011 in perspective – it was very poor. Is the gild off the lily?
Source: Securities Technology Monitor