It was recently reported that last month exchange-traded funds attracted net inflows of more than $4.6 billion. The U.S. ETF industry closed out the month with approximately $764.6 billion in total net assets, up about 2.4% from $746.9 billion in December and up 67.9% from $455.5 billion a year ago.
ETFs tracking domestic equities saw the greatest amount of investment. The category was led by SPDRs (SPY), which realized about $1.5 billion in net inflows last month–a sharp reversal from the more than $15.1 billion in outflows it saw in January.
On the other hand, ETFs covering international equities saw the largest net outflows among the broad asset classes as investors pulled out about $2.9 billion. According to Morningstar, this marks the first monthly outflow for the asset class since August of last year.
Leveraged and leveraged inverse ETFs saw approximately $860 million in net new assets pour in last month. Investors pulled about $346.4 million out of leveraged “bullish” ETFs, while “bearish” ETFs gained approximately $1.2 billion in funds. The most popular was UltraShort S&P500 ProShares (SDS), which attracted more than $516.9 million in net inflows.
On a year-over-year basis, U.S. ETFs closed out 2009 with $785 billion in assets, up from roughly $533 billion at the end of 2008. During 2009, a total of 134 new ETFs were launched. According to BlackRock’s ETF Landscape 2009, this year ETFs are expected to continue growing at a 20-30% rate. Over the past decade, ETFs have skyrocketed in popularity and now account for 35% of all trading volume in the U.S.
Fund.com, Inc. (FNDM.OB) is one of the only stocks on the market specifically targeting the rapidly expanding ETF market. Fund.com’s 60% owned subsidiary AdvisorShares Investments, LLC features a unique platform to launch NYSE-listed ETFs. Their SEC exemptive relief status allows them to create actively managed ETFs. Blending the advantages of an ETF and the traits of a managed fund, they are engaging partners to launch ETFs with this platform and share in the fees generated.
AdvisorShares Investments, LLC currently has one NYSE-listed ETF, five more in the registration period, and more than ten potential new ETFs with partners such as Bank of New York Mellon, Peritus Asset Management, Weston Capital Management, and New York Times Best-selling Author Harry S. Dent. By partnering with financial advisors and helping them launch tailored NYSE-listed ETFs, Fund.com and AdvisorShares nearly eliminate marketing costs, while building assets under management (AUM) and generating fees.
Fund.com also operates a destination website of personal finance channels that provide investment information and services covering mutual funds, hedge funds, money market funds, exchange traded funds (ETFs), closed end funds, commodity funds and other types of pooled investment vehicles. Combining a powerful media network with the origination and distribution of investment fund products, the company is uniquely positioned at the center of the pooled investment solutions arena for both the mass and institutional markets.
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