Inflows to exchange traded products are up sharply so far this year as ETFs vie with traditional mutual funds for more market share and as investors use the financial products to trade the market’s volatility.
Year to date through August, net cash inflows were $73.2 billion, a 54% increase from the same period in 2010, reports Steve Garmhausen for Financial Planning.
Assets in U.S.-listed exchange traded funds and notes stood at $1.064 trillion at the end of August, up 31% from a year earlier, the report said, citing numbers from National Stock Exchange.
Trading volume in ETFs and ETNs last month was about $3 trillion, representing almost 37% of all U.S. equity trading volume, Financial Planning reported.
There were 1,301 products listed in the U.S., compared with 1,046 at the same time last year. [ETF Fund Flows: Make or Break]
“The number of ETF securities is, to me, a further indication that we’re going to see a growing amount of products, not only from existing ETF providers but from newer ones also,” said Tom Graves, an equity analyst at Standard & Poor’s, in the report. [S&P’s Favorite New ETFs]
Tisha Guerrero contributed to this article.
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