US listed ETFs and ETPs hit new high of $1.35 trillion
04 January 2013
News, Global, USA
By Asia Asset Management
The ETFGI Monthly ETF and ETP United States Insight year-end 2012 report reveals that assets in exchange traded funds (ETFs) and exchange traded products (ETPs) listed in the US hit an all-time during 2012 as they increased by 27.1% from $1.06 trillion to $1.35 trillion.
Over the past ten years the compounded annual growth rate (CAGR) has been 28.9%. There are currently 1,447 ETFs and ETPs, with assets of $1.35 trillion, from 53 providers on three exchanges.
A record level of $187.2 billion of net new assets was invested in ETFs and ETPs listed in the United States in 2012. This is $11.2 billion more than the prior record, which was 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 have 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,” says Deborah Fuhr, managing partner at ETFGI.
Equity focused ETFs and ETPs gathered $121.5 billion, which is $68.2 billion more than all of 2011. Products providing exposure to US/North American equity have been the most popular receiving $72.6 billion, followed by emerging market equity with $30.6 billion.
Fixed income ETFs and ETPs proved to be very popular tools in 2012 with $46.3 billion in net new assets which is $4 billion more than all of the previous year. Corporate bond products 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 2011. Precious metals 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,” concludes Ms. Fuhr.
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