As of May 31, the U.S. ETF industry has more than $1.1 trillion in assets under management comprising 1,251 funds, growing by $75 billion since the end of 2011, for asset growth of 7.1%, State Street Global Advisors announced this week.
Amid signs the low interest rate environment will continue, U.S. exchange-traded funds saw more than $60 billion of inflows in the first five months of 2012, with dividend/fundamental ETFs the most popular category, as in 2011. Investors so far in 2012 have added $8.9 billion of inflows to dividend/fundamentals.
In addition, a total of 17 different providers launched 100 new funds, wrote State Street Global Advisors strategist David Mazza of SPDR ETF Strategy & Consulting, in his report, 2012 ETF & Investment Outlook: Sinking or Swimming?
“With one new entrant into the market, ETFs are now offered by 37 fund providers,” Mazza wrote. “Similar to years past, the top three (Blackrock, State Street and Vanguard) control over 83% of the market. Two SPDR ETFs, the SPDR S&P 500 (SPY) and SPDR Gold Shares (GLD), remain the world’s largest funds.”