How Big Is The ETF World?

Print Friendly

More than $2.3 trillion is invested in index exchange traded funds. Where is it? How is it allocated worldwide? Our own local State Street Global Advisors publishes a fascinating monthly report that tells all.

 Global ETF Allocation:

AllocationBy Asset Class:

Asset Class1Largest Providers: The Big Three

Providers

It’s early days

Yes, $2.3 trillion is a lot of money. But it’s only a tiny slice, scarcely more than one percent, of the $177T asset world per Windham Capital. But stay tuned.  The growth of inflows into ETFs each year are far outpacing other investment categories. And competition is keen – when we launched Osbon Capital in 2005, there were a few hundred ETFs (and few investors knew what the acronym stood for). Today, we have more than 2000 ETFs to choose from.world-cup-ETF-1

Ahead of the crowd

We’ve always seen ETFs as ideal vehicles to own thousands of securities with a single trade, access different asset classes, keep costs low and manage tax exposure. Looks like the secret is out now; ETFs are common ingredients in individual and institutional accounts around the world and we expect to see ETF World continue to grow for many years to come. Just imagine when there are $10 trillion of index ETFs! Still only 5% of the world. You can see why I believe Osbon Capital has the wind at its back…

Give us a call at 617-217-2772 – we’d love to hear what’s on your mind

 


This article may include forward-looking statements. All statements other than statements of historical fact are forward-looking statements (including words such as “believe,” “estimate,” “anticipate,” “may,” “will,” “should,” and “expect”). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Various factors could cause actual results or performance to differ materially from those discussed in such forward-looking statements.



Nothing in this article is intended to be or should be construed as individualized investment advice. All content is of a general nature. Individual investors should consult their investment adviser, accountant, and/or attorney for specifically tailored advice.

Any references to third-party data or opinions are listed for informational purposes only and have not been verified for accuracy by the Adviser. Adviser does not endorse the statements, services or performance of any third-party vendor without specifically assessing the suitability of a third-party to a client’s or a prospective client’s needs and objectives.

Past performance is not indicative of future results.  Investment in securities, including mutual funds and ETFs, may result in loss of income and/or principal.

State registration should not be viewed as indicative of any specific skill or endorsement by any regulatory body. Client and service examples are for illustrative purposes only. As every situation is unique, similar outcomes cannot be guaranteed. Any statements of comparison are necessarily general in nature.  Every firm is different in the services it provides, products it offers and fees it charges to clients. An investment cannot be made directly in an index.

 

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!