Credit: Shutterstock photoE xchange traded funds aren't just growing fast. They're growing faster than ever. ETFs and their kissing cousins, such as ETNs, listed in the U.S. pulled in net new assets 8% faster than in recent years, according to research and consulting firm ETFGI.
A record $125.1 billion in net new assets were gathered during the first seven months of 2015.
That topped the prior record of $115.9 billion, which were drawn in during the same period in 2013.
ETF and related asset growth slackened during 2014 amid investor concerns over the impact of the Federal Reserve's eventual lifting of interest rates, Deborah Fuhr, managing partner of ETFGI, told IBD from London via email.
The data apply to ETFs and related vehicles, which collectively are known as ETPs, or exchange traded products.
That growth shows the popularity of ETPs in retirement planning as well as in saving and investing for other goals.
In stark contrast, mutual funds saw outflow of an estimated $42.8 billion, or 0.26%, in the first seven months of this year, according to the Investment Company Institute. That includes $12.49 billion of estimated July outflow.
At the end of July 2015, the U.S. ETP industry held assets of $2.14 trillion among 1,764 ETFs and other ETPs.
Those were spread among 84 fund providers listed on three exchanges, according to ETFGI's preliminary global insights report for July.
The inflow occurred despite concerns among investors about an economic slowdown in China and about Greece's debt fight with creditors, Fuhr wrote in a news release.
ETPs listed globally have also set a record pace of inflow.
Those global funds pulled in a net $199 billion in the first seven months of 2015.
That topped the prior record of $164 billion, which were gathered in the same period in 2014.
Ditto for funds listed in Europe.
A record $48.4 billion net inflow was gathered by ETPs listed in Europe in the first seven months of 2015.
That beat the prior record, which was $42.9 billion gathered in the same period in 2014.
In the U.S. year to date, stock ETPs drew the largest net inflow, which was $90.3 billion.
Fixed income pulled in the second-largest amount, which was $25.4 billion.
Commodity ETPs pulled in $720 million.
Among ETP providers, iShares gathered the most inflow year to date: $49.6 billion.
The second-largest draw was by Vanguard, which pulled in $45.6 billion.
WisdomTree saw net inflow of $21.3 billion.
Investors stuffed $14.5 billion into DB x-trackers.
Next came First Trust, pulling in $9.8 billion.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
