12 ETP trends in 2012

By Staff | December 19, 2012 | Last updated on December 19, 2012
2 min read

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.

Also read:

Canadian ETF market grows apace

ETF space expands in November

ETF market: challenges and opportunities

Advisor.ca staff


The staff of Advisor.ca have been covering news for financial advisors since 1998.