The exchange traded fund universe has quickly expanded and garnered a huge following, and the pace of growth does not seem to be letting up any time soon.
ETF Trends publisher Tom Lydon spoke with Doug Yones, Head of Exchange Traded Products for the NYSE, at the 2017 Morningstar ETF Conference in Chicago September 6-8 to talk about the record inflows and growing popularity of ETFs.
“I think it’s verily an interesting inflection point for all of us in the ETF industry,” Yones said. “We see 300 billion – I think in net cash flow – already this year, breaking records, but for me, what’s been even more successful just that is when you look at where those flows are going, it’s not just the same old places. We’re actually seeing a lot of mid-tier, smaller shops, brand new entrances into the space quickly achieving success in the ETF market.”
There are now 2,045 exchange traded products, which include both ETFs and exchange traded notes, from 115 fund sponsors listed on 4 exchanges with $3.158 trillion in assets under management, according to XTF data.
Just this year alone, we saw 166 new funds launched, and ETF assets experienced net inflows of $329.9 billion year-to-date.
Jumping on this huge success story, many money managers and others who have watched from the sidelines have hopped onto the ETF bandwagon. For instance, insurance giant Nationwide Mutual Insurance Co. recently entered the ETF game with three new smart beta options. Traditional mutual fund providers like Franklin Templeton, OppeneheimerFund Investments and Davis Advisors, among others, also jumped on the ETF opportunity.
“There aren’t a lot of barriers to entry,” Yones said. “You can be as small as a one-person shop and really find your way through a white label shop or you could be what we’re seeing now is some of the larger – let’s say insurance companies – coming to market.”
For more ETF-related commentary from Tom Lydon and other industry experts, visit our video category.