ETF Trends
ETF Trends

ETFGI’s research finds 2014 was a very good year for the ETF/ETP industry in the United States. Some highlights:

Assets invested in the ETF/ETP industry in the United States surpassed the US$2 trillion milestone at the end of 2014.

There were US$52.7 billion in net new asset (NNA) inflows in December in US listed ETFs/ETPs – the largest NNA month on record. Net inflows of US$245.7 billion are a new record beating prior full year net inflows.

The US$245.7 billion of net new assets gathered by ETFs/ETPs in the US in 2014 demonstrates that ETFs have become a preferred tool for many types of investors to implement and adjust their asset allocation. The US market outperformed other developed markets in 2014 marking the third year of double digit gains with the S&P 500 ending the year up 14%. Emerging markets gained 1% while developed markets were down 4% for the year.” according to Deborah Fuhr, managing partner of ETFGI.

There were 71 providers of ETFs/ETPs at the end of 2014 up from 58 at the end of 2013. The top 3 providers iShares, SPDR and Vanguard have seen their combined US market share remain virtually unchanged going from 81.5% to 81.8%. Vanguard’s market share has increased from 19.6% to 21.3%, while SPDRs market share has remained fairly stable going from 23.0% to 22.7% and iShares has declined from 38.9% to 37.8%.

The number of ETFs/ETPs that have over US$1 billion in assets has increased during 2014 to 251. There has been an increase in new product launches by more providers in 2014 than in 2013 and there have been more closures in 2014.

S&P Dow Jones has the largest amount of ETF/ETP assets tracking its benchmark reflecting 37.2% market share; MSCI is second with a 13.0% market share, followed by Barclays with a 10.5% market share.

US ETP Growth

Chart Courtesy: ETFGI