Only 33 exchange traded funds existed by the end of 1999 with assets valued at $39.6 billion. According to research from Black Rock assets topped $1.03 trillion by the end of 2009 from 1,939 ETFs. There was an increase of 45% in 2009, which experts explain was due to the market regaining strength during the same year.
The market made huge gains in 2009 after the financial crisis of 2008 all while investors kept investing steadily into the ETF market. The S&P 500 made great strides recovering 23% in 2009 from it's drop of 38.5% in 2008. Making an even more convincing recovery was the Nasdaq rising 43.5% in 2009 from it 40.5% collapse in 2008. All indication show ETFs assets will reach $1.2 trillion by the end of 2010.
In Europe the number of ETFs grew from 6 to 815 during 2000 to 2009. In the U.S. by the end of 2009 the number of ETFs reached 772. Domestic ETF assets grew dramatically between 1999 and 2009 from $33 billion to over $705 billion.
According to the Wall Street Journal ETF assets could pass that of hedge funds. ETFs have grown faster because investors can gain such quick access to liquidity. Hedge fund assets hit $1.53 billion by the third quarter of 2009 according to Chicago-based Hedge Fund Research of Chicago.
Assets of ETFs cruised past assets of separately managed accounts by the third quarter of 2009 when separately managed accounts were at $527 billion, according to Cerulli Associates. Another source of rapidly growing funds are commodity funds. Separately manages funds grew by only $100 million in 2002 and grew by $22.2 billion in 2009.
Market conditions of 2008 caused investors to be more risk adverse which made investing in ETFs a great option. When investors began looking for investment options they found that ETFs met their needs and offered less risk, price transparency, liquidity, product structure, holdings transparency and less cost issues. ETFs became a very attractive investment option. - 32004
The market made huge gains in 2009 after the financial crisis of 2008 all while investors kept investing steadily into the ETF market. The S&P 500 made great strides recovering 23% in 2009 from it's drop of 38.5% in 2008. Making an even more convincing recovery was the Nasdaq rising 43.5% in 2009 from it 40.5% collapse in 2008. All indication show ETFs assets will reach $1.2 trillion by the end of 2010.
In Europe the number of ETFs grew from 6 to 815 during 2000 to 2009. In the U.S. by the end of 2009 the number of ETFs reached 772. Domestic ETF assets grew dramatically between 1999 and 2009 from $33 billion to over $705 billion.
According to the Wall Street Journal ETF assets could pass that of hedge funds. ETFs have grown faster because investors can gain such quick access to liquidity. Hedge fund assets hit $1.53 billion by the third quarter of 2009 according to Chicago-based Hedge Fund Research of Chicago.
Assets of ETFs cruised past assets of separately managed accounts by the third quarter of 2009 when separately managed accounts were at $527 billion, according to Cerulli Associates. Another source of rapidly growing funds are commodity funds. Separately manages funds grew by only $100 million in 2002 and grew by $22.2 billion in 2009.
Market conditions of 2008 caused investors to be more risk adverse which made investing in ETFs a great option. When investors began looking for investment options they found that ETFs met their needs and offered less risk, price transparency, liquidity, product structure, holdings transparency and less cost issues. ETFs became a very attractive investment option. - 32004
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