12 ETP trends in 2012

Global exchange traded product (ETP) growth continued in 2012 with total assets increasing by 23% from 2011 to $1.9 trillion, according to a BlackRock report.

The report identifies 12 ETP trends for 2012:

ETP flows maintained positive momentum throughout changing risk-on and risk-off market conditions.
Declining and persistently low interest rates have not dampened fixed income ETP flows, now at an all time high of $68 billion through November and 13% higher than the annual record set in 2009.
Minimum volatility equity funds were one of the more successful strategy-based categories with $4.4 billion of inflows, capitalizing on investors’ desire to manage volatility.
While much has been written about active ETFs as a future driver of growth, the potential remains largely untapped with the category representing 1% of industry assets and 3% of 2012 TYD flows.
Gold accounts for such a large portion of the commodity asset class that one could argue it has become its own asset class.
Much has been written about ETP closures, but innovation continues, with 570 ETPs launched in 2012.
Assets in emerging markets debt ETPs doubled in 2012 to $20 billion.
Canada had the highest asset growth rate of any region at 29% for 2012.
Among the top 15 new products in 2012, 10 are listed in Asia Pacific and six provide exposure to Chinese equities.
There was notable divergence of $287 billion between flows into equity ETPs and out of equity mutual funds.
The cyclical timing of 2012 flows was quite different than the typical pattern, with a stronger January than prior years.
Breadth in the market continues to expand: the number of ETPs that have surpassed the threshold of $500 million in assets now total 480 offered by 51 providers, versus 340 offered by 45 providers in 2009.