ETF Trends
ETF Trends

S&P Dow Jones Indices, one of the largest providers of indices for use by issuers of exchange traded funds, said over $7 trillion in global assets were linked to the S&P 500 at the end of last year.

That represents an increase of almost 22% from the end of 2012, said the index provider. Of that total, nearly $1.9 trillion was directly indexed to the S&P 500, the company’s marquee index. That is a 20% increase from the end of 2012, according to S&P.

It helps that the two largest U.S. ETFs are S&P 500 tracking funds. The SPDR S&P 500 ETF (NYSEArca: SPY) is the world’s largest ETF with $170.7 billion in assets under management as of Aug. 20. TheiShares Core S&P 500 ETF (NYSEArca: IVV), the second-largest U.S. ETF, had $60.5 billion in AUM as of Aug. 20. [S&P 500 ETFs Add Cash]

S&P Dow Jones Indices has also benefited from ongoing inflows to dividend ETFs and other ETFs that track alternative indices. As of year-end 2013, approximately $52 billion is directly indexed to S&P DJI factor based indices (I.e. alternative/smart beta indices) such as the S&P 500 Low Volatility Index, S&P GIVI, S&P 500 Dividend Aristocrats, and others, the index provider said in the statement.

Nearly $8 billion in new assets has flowed into dividend ETFs this year. Well-known dividend ETFs tracking S&P Dividend Aristocrats indices, include the $12.8 billion SPDR S&P Dividend ETF (NYSEArca: SDY), one of the largest U.S. dividend ETFs, and the ProShares S&P 500 Aristocrats ETF (NYSEArca: NOBL). NOBL debuted in early October 2013, topped $100 million in assets under management in February and has since surged to over $230 million. [Dividend ETFs Still Popular]

Among other strategic beta ETFs, S&P is the index provider for the $4.6 billion PowerShares S&P 500 Low Volatility Portfolio (NYSEArca: SPLV), the largest low volatility ETF in the U.S. SPLV has garnered $513.5 million in new assets this year, making it the second-best PowerShares ETF in terms of 2014 inflows.

 

Table Courtesy: S&P Dow Jones Indices.

ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of SPY.

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.