Assets invested in globally-listed ETFs/ETPs grew by a record $1.287 trillion during 2017, over double the previous record of $554.0 billion set in 2016.

Assets invested in exchange traded funds and products listed globally increased by 36.3 per cent during 2017 from a year earlier to reach a new high of $4.835 trillion at the end of December, highlighting the continued attractions of such index-tracking vehicles. 

Data from ETFGI, a firm monitoring such funds, assets invested in globally-listed ETFs/ETPs grew by a record $1.287 trillion during 2017, over double the previous record of $554.0 billion set in 2016.

The 36.3 per cent jump in assets also represents the greatest growth in assets since 2009 when markets recovered following the 2008 financial crisis.

Index-tracking, or “passive” funds and products, have boomed in recent years on the back of a rising equity market – which dents the attractions of paying higher fees for actively managed funds – and a perception that active management is often not worth the money in the most efficient, liquid markets.