3 ETF Providers Gain a Foothold in Competitive Industry


As the exchange traded fund ( ETF ) industry grows, it's only going to intensify the competition for new entrants. Despite that, three providers in particular have already managed to get off to a solid start.

The ETF industry is a tough one to break into, yet three relative newcomers to the space have set up shop and by all appearances, they've gained a solid foothold.

Ian Salisbury for The Wall Street Journal reports that PIMCO , Charles Schwab , and ETF Securities are among those newer entrants who have managed to achieve success to a degree this past year and have promising futures in the ETF industry.

It's no small feat. The industry's three largest providers - BlackRock , State Street and Vanguard - have historically given some tough competition.

ETF Securities leads the way among new entrants, amassing $1.5 billion in four physically-backed metals funds. ETFS already had a big commodity ETF presence outside the United States, and stayed within its niche with its gold, silver, platinum and palladium ETFs. [ ETF Securities Takes ETF Industry By Storm. ]

PIMCO, a world-renowned expert on bonds, also stayed in that category by issuing a range of funds that cover Treasuries, muni bonds and Treasury Inflation-Protected Securities ( TIPS ). [ PIMCO: Just Getting Started. ]

Schwab's line of ETFs covering core categories has also done well, thanks in part to the Schwab name, free trading on Schwab's platform and a set of well-diversified funds that cover major asset classes. [ Schwab's ETFs Hit $1 Billion in Assets. ]

For more stories about ETFs, visit our ETF 101 category .

Tisha Guerrero contributed to this article.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , ETFs

Referenced Stocks: ETF , TIPS

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