Moody’s Investor Service claims that the industry is still thriving and is far from a declining. 2011 was a poor year for the stock market in general. However, the ETF industry still managed to gain $148 billion in new assets and over 500 new funds launched, reports The Globe and Mail.
Moody’s claims that in 2011, ETF asset only grew 3%, which is down 85% from 2008-2010. This had to do more with less public offerings and the fact that the assets in already existing ETFs did not grow much, reflecting the minor movement in the S&P 500 and other major indices.
“Fundamentals point to further positive growth trends this year, though the pace of growth likely will continue to be tempered by macroeconomic uncertainties and credit pressures on sovereigns and banks,” the credit rating agency said in a release.
Tisha Guerrero contributed to this article.
Full disclosure: Tom Lydon’s clients own SPY.