US ETPs reach trillion milestone

ETFsAssets in US-listed exchange traded funds (ETFs) and exchange traded products (ETPs) broke through the $1trn (€758bn) milestone reaching $1.027 trillion for the first time on 16 December 2010.

Growth in ETFs and ETPS reflects expansion in the use of the vehicle through retail channels and continued popularity with institutions, according to BlackRock, which produced the figure.

As of 16 December 2010, in the US there were 894 ETFs with assets of $887.2bn from 28 providers on two exchanges.  This is up 772 ETFs with assets of $705.5bn from 29 providers on two exchanges end of December 2009.

Year to date, 171 new ETFs have been launched in the US with another 828 new ETFs in the pipeline, while 49 ETFs were delisted.
Net new asset flows for US-listed ETFs for 2010 to date provide evidence of growing interest in both developed and emerging markets equity ETFs/ETPs, with these flows greater this year than in 2009.  At the same time, net new asset flows indicate less focus on fixed income and commodities.

Through November, net new flows into North American equity ETFs/ETPs have totaled $21bn, compared with just $2bn in 2009.  Over the same time period this year, flows into emerging markets equity ETFs/ETPs overall have totaled $29 billion, compared with $27 billion last year. 

Of this total, flows into “multi-region” emerging markets products have totaled $26bn year to date, compared with $16.7bn last year.

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