Blackrock: ETF Assets Should Grow By 20% to 30% Annually in Coming Years
Posted by John Kimelman
The industry grew in all major dimensions during 2010 and “we expect this to continue in 2011,” according to a report by investment firm Blackrock.
With products and assets both growing by 26.6%, the global ETF industry had 2,459 ETFs with 5,554 listings and assets of US$1.311 trillion, from 136 providers on 46 exchanges around the world, at year end 2010. This isup significantly on 2009’s year end of 1,943 ETFs with 3,827 listings and assets of US$1.036 trillion, from 108 providers on 41 exchanges.
Demand for ETFs globally has surged as professional and retail investors alike have discovered their unique combination of benefits, such as versatility, transparency and significant cost advantages.
Factors driving expanding use of the vehicle include the number and types of equity, fixed income, commodity and other indices covered, more fund platforms embracing ETFs, more active marketing of ETFs by online brokers, greater involvement by fee based advisors, the growing number of exchanges planning to launch new ETF trading segments, and regulatory changes in the United States, Europe and many emerging markets that allow funds to make larger allocations
to ETFs.
According to Blackrock, “We expect global AUM in ETFs and ETPs to increase by 20-30% annually over the next three years, taking the global ETF/ETP industry to approximately US$2 trillion in AUM by early 2012. Considering ETFs separately, AUM should reach US$2 trillion globally by the end of 2012, US$1 trillion in the United States in 2011 and US$500 billion in Europe in 2013.”