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ETP market hits record numbers
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This article was originally published by staff at InvestorDaily, a Sterling publication.
Investors are turning to exchange-traded products (ETPs) in record numbers, according to data from BlackRock.
Global ETP market inflows reached a record $262.7 billion in 2012, driven by regional regulatory developments, deepening ETP liquidity and increasing awareness of the products.
BlackRock's iShares business captured $83.3 billion of new flows out of ETP market flow.
iShares global head Mark Wiedman said fixed income was a key driver of flows globally, as investors of all kinds increasingly adopted exchange-traded funds (ETFs) as an essential instrument for accessing the bond markets.
"iShares captured $28.8 billion globally, or 41 per cent, of all new flows into fixed-income ETFs," he said.
iShares global assets under management (AUM) reached $758.6 billion as of the end of 2012.
While all global regions contributed to the growth, the US product line reached a record $61 billion of new assets, surpassing the 2007 record of $59.1 billion.
In Europe, iShares captured 56 per cent of all new net flows entering European ETPs, with $18.3 billion in net flows being recorded over the year.
With the alternative investments predicted for 2013 throughout the Asia-Pacific region, iShares has predicted that ETP investment will continue to boom.
"Asian investors are expected to continue to seek income and yield in different places, driving growth in fixed-income products," iShares head of Asia Pacific Jane Leung said.
"We expect assets under management and trading volumes in ETFs to grow significantly in the Asia Pacific as a result."
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