Total assets rose 2.1% to a new all time high of $1.32 trillion.
US equity focused ETFs contributed $9.3B to the market’s total inflow of $20.7B. Bond funds added $4.9B and foreign equity funds added $3.0B. Year-to-date, the ETF market has experienced a total inflow of $161.1B.
SPY remains the largest fund with $110.9B in market cap, which accounts for 8.4% of all assets. The largest fifty funds account for 64.8% of all ETF assets.













It may be this blog that is the source of a (now) often quoted 'fact' that the outflows from equity mutual funds has been totally offset by inflows into equity ETFs.
Therefore the previously stated 'cash on the sidelines will drive up markets when they pile on' and 'investors missed all the great gains' were all hogwash.
But can the author explain why the statistics of ETF's units and mutual fund inflow/outflows say ANYTHING about cash flows into/outof equities? Both these structures hold actual company shares. When they shrink, they liquidate their holdings of these shares and sell TO SOMEONE ELSE.
Ownership changes but the number of company shares in the market does not change. SOMEONE still owns them.
ETF units can be hugely driven by institutions (not retail) as witnessed in the logarithmic growth in the Credit Crunch, when mutual funds needing liquidity swapped baskets of their shares for ETF units.
Posted by: Chris | December 31, 2012 at 12:56 PM
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ETF Total Assets Rise to $1.32T
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