ETF Trends
ETF Trends

Although exchange traded funds (ETFs) crossed the $1 trillion threshold in mid-December, that figure managed to hold through until the end of the month and make it officially official.

National Stock Exchange just released its expanded, year-end 2010 exchange traded fund (ETF) and exchange traded note (ETN) data, showing how massive the industry’s growth has been in the last several years:

  • Since December 2005, assets in ETFs have grown 224%
  • Since December 2005, the number of ETFs on the market has ballooned from 221 to 967 – a 338% growth rate
  • In the last year alone, assets in ETFs grew 28%

Some of the biggest growth spots in 2010 have been long U.S. equities, which pulled in $37 billion in 2010; only global equities did better, grabbing $39 billion. Fixed-income was also hot, nabbing $26 billion. A late-year run also boosted commodities, which pulled in $11 billion for the year.

Currency ETFs took a hit, losing $2.6 billion for the year.

Total ETF/ETN share volume averaged 1.46 billion shares per day. ETF/ETN Notional Trading Volume totaled $18.2 trillion, representing 29% of all U.S. equity trading volume. [December ETF Performance Reports.]

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.