ETFs hit $10tn as investor demand drives historic growth in asset management
As a result, money managers have seen a reduction in fee income. Issuers have responded by developing more complex strategies within ETF structures to meet investor demand.
Amrita Nandakumar, president of Vident Asset Management, emphasized the rapid growth of ETFs, stating, “The growth has been incredible,” especially considering that the ETF industry reached $1tn just 14 years ago.
She added, “ETFs now offer nearly universal access to asset classes and strategies that were once available only to the world’s most sophisticated institutional investors.”
With around 3,800 ETFs available, the market is on track to set new records for both fund launches and inflows. Vanguard Group Inc. has seen 32 percent of all inflows this year, marking its third-best year.
New ETF offerings have primarily been in actively managed funds or those utilizing derivatives and leverage, as issuers seek to innovate and capture market share.