Exchange-traded funds (ETFs) are up 24.5% from last year as of the end of November. That’s a banner year and double the returns of four years ago.
Throw other exchange-traded products (ETPs) into the mix and you have a total of $1.9 trillion in investment assets globally.
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$21.3 billion of net new investments went into ETFs and ETPs just during the month of November. That’s $69 billion above the level of November 2011.
Vanguard received the largest segment of that money and now have a 20.9% market share. SPDRs follow close behind with a $19.9% market share.
The most significant new offerings came from PIMCO with its actively managed Total Return ETF (BOND). PIMCO dominates the actively managed ETF market with a 61% market share.
Actively managed ETFs crossed the $10 billion threshold for the first time and are growing at a rate of 100%, just like index ETFs grew in the years 1993 through 1996.
The CEO of AdvisorShares, Noah Hamman, noted that $10 billion may not be significant from a broader perspective but it is an important threshold that signifies the sub-sector is on the path for major growth.
AdvisorShares launched its Pring Turner Business Cycle ETF (DBIZ) that is modeled after Martin Pring’s technical analysis of stocks, bonds, and commodities relative to the business cycle.
In 2013, fund managers will observe how actively managed ETFs and ETPs that have a track record of three years begin to be ranked by Morningstar.
Other entrants to the actively managed ETFs segment will likely be Fidelity and other big firms who have recently sent applications to the SEC.