ETF Trends
ETF Trends

The global ETF industry is projected to top $3.8 trillion by 2016, according to a report this week.

In just the U.S., total assets stood at $1.2 trillion at the end of April.

Cerulli Associates predicts global ETF assets will climb to nearly $4 trillion in four years, the Financial Times reported.

“Strong flows into ETFs are encouraging established mutual fund managers to consider entry into the market,” the article said.

Cerulli highlighted a need for more advanced education about ETFs as “pivotal” for encouraging their greater use by financial advisors, according to the FT story.

One potential growth area for ETFs is the 401(k) retirement market, which is still dominated by mutual funds. [ETFs Face 401(k) Hurdles]

The opinions and forecasts expressed herein are solely those of John Spence, 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.