ETFs ‘grew faster than hedge funds’ in 2016

Global payThe global exchange-traded product (ETP) industry, which includes ETFs, grew faster than the hedge fund industry last year, according to research.

ETFGI, an ETF consultancy, said that assets invested in the global ETF/ETP industry were $530 billion (€501 billion) larger than assets held in the global hedge fund industry at the end of 2016.

According to the firm there was a record $3.548 trillion invested in the 6,630 ETFs/ETPs listed globally at the end of 2016, while assets in 8,326 worldwide hedge funds stood at $3.018 trillion.

ETFGI said assets invested in the global ETF/ETP industry first surpassed assets invested in the hedge fund industry at the end of second quarter of 2015, following a marked trend towards more investment in ETFs/ETPs since the financial crisis of 2008.

ETFGI managing partner Deborah Fuhr said that one reason for the growing popularity of ETFs and ETPs was that “many investors have become disappointed with the high fees, performance and lack of liquidity of hedge funds over the past few years”.

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