The ETF industry is booming. ETFs are currently one of the fastest growing areas of the market. ETF assets rose 46% over year-ago levels, and now make up more than 7 % of all mutual fund assets.
There is now over $1 trillion invested in ETFs.
There is clearly momentum in the ETF industry. To quote an industry expert, Matt Hougan, “ETFs have arrived.” Will ETF assets top mutual fund assets? It will be awhile before that happens, but Matt makes a compelling case for accelerating growth in ETFs.
I think ETFs are great investment vehicles. I also expect to see rapid growth as new ETFs are developed and as investors educate themselves on the benefits of ETFs.
While we’re on the topic, don’t forget to check out the 4 reasons I like ETFs.
So, tell me, do you own ETFs in your portfolio? What do you like or dislike about them?
- “ETFs Pass Trillion-D0llar Milestone Globally” [Investor’s Business Daily, January 20, 2010]
- Will ETF Assets Top Mutual Fund Assets? [Index Universe]
Photo by YtseJam Photography