ETF Predictions for 2011 Show a Theme | ETF Trends

As the calendar flipped over into 2011, the exchange traded fund (ETF) prognosticators came out in force. We were among them. What emerged from all the predictions were a few themes.

Hannah Glover for Ignites reports that the forecasts all have several trends in common:

  • The bond reign in 2010 will be no more – rising interest rates may ding them.
  • Equities will phase back in as a global economic recovery gathers force. [5 ETFs for a U.S. Equity Boom.]
  • ETFs will get more money. Last year, they garnered roughly one of every four dollars investors poured into mutual funds. This year, ETFs could rake in one-third of every dollar going into mutual funds. [Confidence Comes At A Cost For Treasury ETFs.]
  • Advisors will use ETFs more as they seek access to hard-to-reach areas of the market, such as currencies. Demand for investment solutions has kicked product development teams into high gear, with diverse product development and high activity revealed.

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.