U.S. Is Home to Most ETFs In The World


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Exchange traded funds have seen some explosive growth over the past decade. A strong stock market in the U.S and overseas and low expense ratios have propelled investor demand for the investment vehicles.

The U.S. ETF market managed nearly $1.7 trillion in assets with 1,294 funds at year-end 2013, according to the Investment Company Institute. The U.S. by far has the largest share of ETFs, accounting for 72% of the $2.3 trillion ETF assets worldwide.

In second place, Europe-based funds make up only 17% of total assets, while Africa and Asia-Pacific ETFs take up 8%.

To keep up with investors' appetite for ETFs, investment firms have offered a greater number of funds as well as variety, including ETFs that invest in particular market sectors and commodities.

At year-end 2013, there were 311 commodity and sector ETFs, managing $267 billion in assets. The biggest share of those 311, 24%, were commodity ETFs, followed by natural resources at 16% and technology at 13%.

Commodity ETFs also had the most assets, although their share of net assets was down sharply at 24% from 47% a year earlier due to declining gold and silver prices.

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

This article appears in: Investing , ETFs

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