A recent study by fund research firm Strategic Insight concludes that global ETF assets will hit $1 trillion by 2012.
Assets in global Exchange Traded Funds topped $725 billion at the end of 2008 with investors worldwide putting nearly $270 billion into ETFs in 2008.
The study finds that the growth is driven by a broadening buyer pool as awareness and use of the exchange traded product (ETP) structure has risen among both institutional and retail investors.
The current split of ETF assets is 40 – 50% with institutions and 50 – 60% with retail investors. The study also finds that Registered Investment Advisors (RIAs) have increased their use of ETFs by 25% or more in the past two years and 70% of RIAs plan to increase their use of ETFs even further.
For more information on the study, visit www.sionline.com.