Assets in U.S.-listed exchange traded funds are expected to double by 2015, according to research from BNY Mellon and Strategic Insight.
According to the report, ETF assets will be around $2.1 trillion at the end of 2015, reflecting a growth rate of 16%, reports Jackie Noblett for Ignites. [ETFs Take on Popular Mutual Funds.]
“The next wave of growth for ETFs is being driven by new asset classes, new indexes and new ways to use ETFs as tools for portfolio construction,” said Joseph Keenan, head of global exchange traded fund services at BNY Mellon Asset Servicing, on ETF Daily News. “The ever increasing sophistication of these newly created ETFs can pose operational and distribution challenges for asset managers. However, with detailed planning and a focused strategy, a variety of innovative exchange-traded products can be brought to market to effectively meet investors’ needs.”
The ETF business has evolved beyond index funds tracking the major benchmarks such as the S&P 500. They offer exposure to a broad array of asset classes, including precious metals, commodities, currencies and alternative strategies. [ProShares Lists Hedge Fund ETF]