February 03, 2009 at 6:00 am by Tom Lydon
Exchange traded funds (ETFs) had a banner year in 2008, however, not in the usual sense.
The total year-over-year number of ETFs increased in 2008, from 629 to 747, according to State Street Global Advisors. The increase came even though a record, 46 ETFs, closed doors this year.
Although there were closings, there were 164 new ETFs launched in 2008, the second-highest number of new introductions ever. David Hoffman for Investment News reports that the most successful ETF introductions were leveraged and inverse, from providers ProShares and Direxion.
ETFs saw positive cash flow, but assets ended the year at $534 billion, down 12% from 2007. Barclays, Vanguard, and State Street continue to dominate the ETF market share.
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