Exchange traded funds (ETFs) are moving on up.
That’s the conclusion of a survey recently conducted by the SEI Knowledge Partnership. The survey sought the views of asset management executives when it came to exchange traded products (ETPs).
We spoke with John Alshefski, senior vice president and managing director and Jay Cipriano, head of Traditional Solutions, both with SEI’s Investment Manager Services Division.
“We’re trying to provide insight into the marketplace,” Cipriano says. The survey was designed to help SEI’s investment manager clients understand the issues that will influence future fund launches, business conditions, as well as develop more competitive business strategies. “There are significant growth opportunities for ETFs.”
Of the firms surveyed, 28% plan to launch ETPs in the next 18 months, 58% said they have no plans and 14% already sponsor some.
ETPs themselves have grown at a phenomenal rate in just 10 years: from $16 billion in assets in 1998 to $587 billion as of June 30, 2008, a 3,568% growth rate. Last year, assets ticked slightly above the $613 billion mark before retreating in the wake of a market downturn.