Assets in ETFs have turned around after a three month decline in the fall of 2008, with the asset level growing by 11.9%, or $56.6 billion, in December according to State Street Global Advisors, citing data from Bloomberg. As of December 31, there was $533 billion invested in ETFs in the U.S. through 22 managers. Large-cap ETFs and international funds accounted for much of the year-end increase, State Street said. In particular, there were 13 new ETFs launched in December, while one ETF was liquidated.
In the face of extreme losses in the equity and credit markets, State Street saw $70 billion in combined net flows into the SPDR family of ETFs during the full year, raising total assets in SPDRs to $160.1 billion by year-end. "The record high inflows into SPDR ETFs in 2008 are a testament to the strength of our diversified product lineup and the unmatched support we provide to financial professionals seeking to better understand how ETFs can be used to simultaneously manage portfolio challenges and costs," said James Ross, senior managing director at State Street, in announcing the data.-Kara P. Stapleton