However, despite signs of slowing growth, there is still overwhelming evidence for future growth in ETF assets.
First off, the decline in assets can merely be traced to a global bear market. As the global ETF industry has more exposure to equities than any other asset class, the decline in assets under management essentially reflects market movement.
Also, ETF providers are still planning as though the ETF market has not been slowed by any means, reflecting their optimism. These providers of ETFs are proposing new products as though nothing has changed. As of Aug. 7, there was roughly 538 ETFs and ETNs in registration.
As we continue to experience a down market, it is highly unlikely that the industry will see a significant flow of investing into ETFs. However, once we get past the bear and start riding the bull, assets under management in ETFs undoubtedly have the potential to climb to greater new heights.
