ETF Assets Seen Hitting $3.5 Trillion by 2016
November 14th 2012 at 2:26pm by John Spence
Assets in ETFs are projected to reach $1.33 trillion by the end of this year and rise as high as $3.45 trillion in 2016, according to a new study.
“The growth in ETF assets comes from increased advisor adoption, as well as the adoption of ETFs by institutions, using this for specific exposure to an asset class,” said Alec Papazian, senior analyst at Cerulli and author of the study, in an Investment News report.
ETFs are also being used more on direct platforms by clients sensitive to cost, according to the report.
In the ETF managed portfolio space, there were 500 strategies through June with 48% asset growth and $50 billion in assets, according to investment researcher Morningstar. [Advisors Like ETF Managed Portfolios for Low Costs, Diversification]
Additionally, 401(k) retirement plans are a largely untapped market for ETFs. [ETFs Have Room for Growth in Retirement Plans]
The business is working on ways to include ETFs in more retirement plans as 401(k) participants get more disclosure on fees. [WisdomTree Sees 401(k) Plans, Fee-Based Advisors Driving ETFs]
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.