Another milestone has been reached by the exchange traded fund (ETF) industry: assets in U.S.-listed ETFs now stand at a cool $1 trillion.
According to BlackRock, the major mark was reached late last Thursday. That includes 894 ETFs with assets of $887.2 billion from 28 providers on two exchanges and 185 ETPs with assets of $115.5 billion from 20 providers on one exchange, reports Daisey Maxey for The Wall Street Journal. [The Battle for ETF Assets Rages On.]
Although it’s a great milestone for the industry, keep in mind that it’s still only a fraction of what’s owned in mutual funds.
Mutual fund assets, in turn, have struggled with weak inflows, outflows in some cases and a number of fund closures.
The ETF industry is growing fast, and it could catch up someday at the rate it’s going, but it won’t be anytime soon. A recent survey by Ignites shows that the majority believe it will happen eventually, though 27% said it would never happen. [November ETF Performance Report.]
Tisha Guerrero contributed to this article.
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.