ETF assets hit record $2.2 trillion in 2015Staff writer ▼ | January 29, 2016
Total exchange-traded fund (ETF) assets hit an all-time high of $2.2 trillion in 2015, driven by the continued growth in popularity of passive investment vehicles.
Assets According to Broadridge Financial Solutions:
Comparatively, total long-term mutual fund assets held by financial intermediaries decreased by $161 billion to $7.29 trillion in the full year of 2015, while ETF assets increased by $124 billion in the same period.
According to Broadridge's Fund Distribution Intelligence findings, retail distribution channels experienced a larger increased usage of passive products, with an increase of 2.6 percent, versus institutional channels which increased by 1.6 percent.
This increase brought the usage of passively managed products to 31 percent across all channels, a two percentage point market share increase during 2015.
With an increased use of both index funds and ETFs by advisors and in model portfolios, passively managed fund and ETF assets increased to 26 percent of overall fund and ETF assets held by retail distributors over the past year.
Among retail channels, registered investment advisors and online retail shareholders utilizing discount brokerage firms are the largest users of passive products at 30 and 58 percent respectively. Alternatively, independent broker dealers continue to be the highest users of active funds, holding more than 80 percent in active investments. ■