ETFs Are Expected To Continue Racking Up Gains In 2012 At The Expense Of Mutual Funds
The trend is adding pressure to mutual fund companies and other financial services firms to add ETFs to their lineups.
Through November, the ETF industry has expanded to include 1,176 listed products with $1.049 trillion in assets, ETF Trends reports.
“In the year ahead, we expect that ETFs will continue to gain market share from mutual funds and individual securities, reflecting greater investor awareness of ETFs as an investment choice, and appreciation of prospective advantages that ETFs offer,” Tom Graves, S&P Capital IQ analyst, said in a note.
The largest ETF currently is the SPDR S&P 500 ETF (SPY) with $86 billion, followed by the SPDR Gold Shares (GLD) with $73 billion.
The top three ETF providers are BlackRock, with a market share of 42%, State Street Global Advisors at 25% market share, and Vanguard at 17% market share, according to ETF Trends.
Among the largest ETFs available in the equities category, S&P Capital IQ holds an overweight ranking on SPY, PowerShares QQQ Trust (QQQ), iShares S&P 500 Index Fund (IVV), Vanguard Total Stock Market Index Fund (VTI), iShares Russell 1000 Growth Index Fund (IWF), iShares Russell 1000 Value Index Fund (IWD) and SPDR Dow Jones Industrial Average ETF Trust (DIA).