ETF Assets Rise, Trading Volumes Fall In First Half '09

By
ETF.com Staff
August 10, 2009
Share:

A comparison between the US and European ETF markets shows that the European market continues to grow at a faster pace.

 

 

Global ETF assets rose by 11% in the first half of 2009, Barclays Global Investors (BGI) reports in its July 2009 ETF Landscape publication, released last week. However, it reveals that daily ETF trading volumes in 2009 are so far running 17% below those seen last year.

The BGI report says that by the end of June, global ETF assets had reached US$789 billion. The 11% growth rate in assets in the year to date exceeded the 4.8% increase in the MSCI World index over the same period, implying continuing inflows to ETFs from investors.

Quoting research firm Strategic Insight, BGI estimates that investor inflows to ETFs totaled US$36.6 billion during the first five months of the year. By comparison, net sales of mutual funds totaled US$99 billion over the same period.

According to BGI, a comparison between the US and European ETF markets shows that the European market continues to grow at a faster pace. ETF assets rose 16.3% in Europe over the first half but only 8.2% in the US.

The number of European ETFs exceeded the tally in the US for the first time, reaching 713 by the end of June versus 693 in the US. However, the US ETF market remains substantially larger, totaling US$538 billion as opposed to Europe’s US$166 billion at the end of the first half.

BGI notes that the average total expense ratio for European equity ETFs is slightly higher than across the Atlantic, at 37 basis points compared to 32 basis points in the US. Compared to the 2008 average, first half trading volumes fell further in the US market, by 18.5% versus 5% in Europe.

 

ETF.COM CHANNELS

Want to learn more about smart-beta ETFs? Check out our smart-beta guide, essentials library and ETF screener!

ETF DAILY DATA

Small-cap stock ETF 'IWM' took a breather and found itself among the biggest creations on Monday, July 27, raking in more than $420 million in one day. Total U.S.-listed ETF assets dropped to $2.111 trillion.

A roster of ETFs including 'IJH' and 'IWM' paced iShares' issuer-leading inflows Monday, July 27. Total U.S.-listed ETF assets dipped to $2.111 trillion.

ETF.COM ANALYST BLOGS

By Paul Britt

Toss and turn about whether to hedge currency risk, but don’t lose sleep over the derivatives themselves.

By Dave Nadig

With the China A-share market half-broken, ETF investors should be very, very cautious.

By Drew Voros

Price depreciation and continued outflows have made for a tough few years.

By Dave Nadig

Legendary investor trips over how ETFs work.

ETF INDUSTRY PERSPECTIVE

By Invesco PowerShares

A more in-depth look at the smart-beta survey's results.

By Invesco PowerShares

Smart beta appears to be poised for further growth.