The evolution of exchange traded funds (ETFs) have come to fruition and some experts are even calling it "critical mass". Global ETF assets are taking off, passing $700 billion in 2007 and an expected $2,000 billion in 2011. More companies are playing this field, making this particular hot sector competitive. In fact, the number and type of ETF is growing at such an extreme rate that every theme, sector and region is getting exploited for a new product, reports Deborah Brewster for Financial Times.
The industry is still led by America, with U.S companies dominating globally, but market share is slightly slipping as new players enter the market. The average fund holding in Europe is around $10 million, compared to the U.S. with averages around $100 million per fund. Barclays Global Investors is still leading the industry, with $350 billion in ETF assets. The number of new launches is showing no signs of slowing.
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.