iShares is the world’s dominant exchange traded fund (ETF) player, but that doesn’t mean they’re resting on their laurels.
Although iShares is still the dominant ETF provider, it still managed to increase its market share last year for the first time since 2006. It was a big year otherwise for the provider, as it was sold to BlackRock, as well.
Ian Salisbury for The Wall Street Journal reports that iShares ETFs held about $373 billion, or about 50.1% of the assets in all U.S. ETFs, according to Morningstar. In 2008, iShares had 47.7% of ETF assets. [More about the BlackRock/iShares deal.]
This gain is impressive considering the increased competition and the intensity of newcomers such as Charles Schwab and PIMCO. The overall number of ETFs competing for attention has swelled to almost 800 from about 150 five years ago, according the Investment Company Institute (ICI), the fund industry’s trade group.
Established funds with a high trading volume and healthy assets under management are what ETF investors look for, giving the established fund families a leg up on the newer competition. iShares also seems to have benefited from their lineup of fixed-income ETFs, which is one of the fastest-growing areas of the ETF business. Investors have also shown an increasing interest in global investing, and iShares has a long lineup of single-country and broad funds in both developed and global markets. [Our December ETF performance report.]
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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.