ETFGI US Press Release, Year End 2012

ETFGI US Press Release, Year End 2012

Global ETF and ETP assets reach a new high of nearly $2 trillion ($1.95 trillion) at the end of 2012

LONDON — January 3, 2012 - Assets in Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) listed in the United States hit an all-time high of $1.35 trillion. ETF and ETP assets have increased by 27.1% from $1.06 trillion to $1.35 trillion during 2012, according to figures from ETFGI’s monthly United States ETF and ETP industry insights.

The 10 year compound annual growth rate (CAGR) of ETF and ETP assets  is 28.9%. There are currently 1,447 ETFs and ETPs, with assets of $1.35 trillion, from 53 providers on 3 exchanges.

Record level of $187.2 billion net new assets is invested in ETFs and ETPs listed in the United States in 2012. This is $11.2 billion more than the prior record set in 2008. 

Overall $28.1 billion of net new money went into ETFs and ETPs in the month of December. During 2012, ETFs and ETPs saw net inflows of $187.2 billion which is $68.8 billion above the level of $118.4 billion of net new assets gathered in 2011. Equity ETFs and ETPs gathered the largest net inflows accounting for $121.5 billion followed by fixed income ETFs and ETPs with $46.3 billion and commodity ETFs and ETPs capturing $13.7 billion.

“The record level of assets invested in ETFs and ETPs and record level and composition of the fund flows in ETFs and ETPs listed in the United States in 2012 show that these products are increasingly being embraced by institutional investors, financial advisors and retail investors for strategic and tactical asset allocations. The flow data is a very good indicator of how investors are tactically and strategically adjusting their allocations to political, economic and other uncertainties that are impacting the markets” according to Deborah Fuhr, Managing Partner at ETFGI.

Equity focused ETFs and ETPs have gathered $121.5 billion which is $68.2 billion more than all of last year. Products providing exposure to US/North American equities have been the most popular receiving $72.6 billion, followed by emerging market equities with $30.6 billion.

Fixed Income ETFs and ETPs have proved to be very popular tools this year with $46.3 billion in net new assets which is $4 billion more than all of last year. Corporate bond products have gathered the largest net inflows with $16.2 billion, followed by high yield with $11.2 billion.

Commodity flows at $13.7 billion are $6.1 billion above last year. Precious metals have gathered the largest net inflows with $12 billion, while agriculture experienced the largest net outflows with $1 billion.

“As we forecasted we have ended 2012 with a record level of assets in ETFs and ETPs and with a record level of net new assets invested into the products during the year” according to Deborah Fuhr, Managing Partner at ETFGI.