By 2011, total assets under management globally in exchange traded funds (ETFs) are expected to surpass $2 trillion, which is up from $669 billion as of June 30, according to a report by Morgan Stanley. Some possible causes behind the growth, according to Pensions & Investments for Investment News, include:
- ETF expansion into new sectors and regions
- Larger allocations by U.S. and European investors
- Managers increasing the number of products brought to the market
The U.S. has the most active ETF market with 1,559 institutions using ETFs, as of Dec. 31 last year. The most widely used ETFs worldwide as of that time are:
- SPDRs (SPY) – 1,067 users
- iShares MSCI Japan Index (EWJ) – 681 users
- iShares MSCI EAFE Index (EFA) – 671 users
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.