An 11-year study has revealed some interesting findings about the usage of exchange traded funds (ETFs). In particular, it revealed that the use of the funds accelerated during the credit crisis of 2008. Why?
The recent report from Barclays Global Investors reported the number of institutions using ETFs has grown a whopping 1,673% since 1997, at a compound annual growth rate of 30%. According to the report, net sales of ETFs in 2008 were $270 billion, compared to an outflow of $117 billion from mutual funds. (Recession lessons for all of us).
Indications within the report also point to investors and portfolio managers seeking ETFs to provide a broader range of sectors and markets to their clients, reports Chris Vellacot for Reuters.
ETFs remain most popular and used more frequently in the United States, with more than 2,000 institutions reporting holdings. (Advisors see benefits of ETFs, too).
For more stories about ETFs, visit our ETF 101 category.
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.