ETFs Growing at a Faster Pace than Mutual Funds, Hedge Funds and Separate Accounts | ETF Trends

What is the current investment product with the most growth?  Answer: Exchange Traded Funds.  According to Financial Research Corporation, sales of ETFs are expected to grow 32% each year for the next four years.  That translates into $61 billion in 2006 to $164 billion in 2010.  Net sales of hedge funds are expected to grow 12% next year and mutual funds are expected to fall 10%.

Although the first ETF came about in 1993, we’ve recently seen new ETFs hit the market.  For example, this year new ETFs tracked water, the euro and several other industries, sectors and regions.  Also be on the look out for silver and commodity ETFs next year.

The opinions and forecasts expressed herein are solely those of Tom Lydon, 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.