Assets In Exchange Traded Funds, Products Reached Another Record In 2017

Tom Burroughes

22 January 2018

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.