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ETFs trigger change in portfolio construction - survey
February 4, 2010
State Street Global Advisors (SSgA), the investment management business of State Street Corporation (NYSE: STT), today released its 2009 Exchange Traded Funds (ETFs) Year-End Review and 2010 Outlook report, which highlights several key themes expected to influence ETF asset flows in 2010.
According to the report, 2009 marked the third consecutive year in which ETF net inflows exceeded $100 billion, as investors moved away from large cap US equities and developed international equities and increased their exposure to ETFs providing access to defensive asset classes, including gold, investment grade corporate bonds, and US Treasury Inflation Protected Securities.
"While the pace of new product launches slowed in 2009, the trajectory of ETF asset growth underscores how these innovative investment vehicles are changing the way investors and advisors construct portfolios," said Tom Anderson, director of strategy and research for the Intermediary Business Group at State Street Global Advisors. "With US ETF assets projected to reach the $1 trillion mark in 2010, the catalysts driving this growth are poised to shape the industry's expanding landscape in the near future."
Among the key themes highlighted in the 2009 ETF Year-End Review and 2010 Outlook report are: *Effective tactical use of ETFs by investors; *Continued expansion of fixed income ETF products and assets; *Traditional mutual fund providers entering the space; *Emergence of actively managed ETFs.
According to the report, 2009 marked the third consecutive year in which ETF net inflows exceeded $100 billion, as investors moved away from large cap US equities and developed international equities and increased their exposure to ETFs providing access to defensive asset classes, including gold, investment grade corporate bonds, and US Treasury Inflation Protected Securities.
"While the pace of new product launches slowed in 2009, the trajectory of ETF asset growth underscores how these innovative investment vehicles are changing the way investors and advisors construct portfolios," said Tom Anderson, director of strategy and research for the Intermediary Business Group at State Street Global Advisors. "With US ETF assets projected to reach the $1 trillion mark in 2010, the catalysts driving this growth are poised to shape the industry's expanding landscape in the near future."
Among the key themes highlighted in the 2009 ETF Year-End Review and 2010 Outlook report are: *Effective tactical use of ETFs by investors; *Continued expansion of fixed income ETF products and assets; *Traditional mutual fund providers entering the space; *Emergence of actively managed ETFs.
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