New research from Morgan Stanley found that inflows into U.S.-listed ETFs topped $11.6 billion in the first three months of 2007, bringing total ETF assets in the U.S. to approximately $480 billion. That actually represents a significant slowdown in asset growth, as it calculates out to just 10 percent annualized growth. In comparison, the industry grew 40 percent in 2006.
PowerShares further expanded its line-up of international exchange-traded funds (ETFs) this week with the launch of five new products on the American Stock Exchange (AMEX).
Van Eck has joined the race to capitalize on the growing interest in alternative energy. The company, which has its roots in commodities management, launched the Market Vectors Global Alternative Energy (NYSE: GEX) in early May. It is Van Eck’s sixth exchange-traded fund (ETF).
First Active ETF
The era of actively managed ETFs is set to begin. Bear Stearns became the first company to file a full prospectus for an actively managed ETF, submitting papers to the SEC on March 19 for a money-market-like fund called the "Bear Stearns Current Yield Fund." If approved, the fund will use active strategies in an attempt to deliver yields above and beyond the average money market account.
First Trust added two to its ever-expanding cadre: the Nasdaq-100 Ex-Tech (QQXT) and Nasdaq Clean Edge US Liquid Series (QCLN) ETFs. With 12 ETFs ranging from dividends to tech currently in its stable, First Trust plans on listing another 20 to 25 this year alone. The advisory, which manages some $28 billion in assets of for-profit businesses and not-for-profit organizations, has big ambitions for its fledgling ETF business, which, at the end of January, held just $613 million of the $422 billion invested in US ETFs.