Exchange traded funds (ETFs) around the world could top $2.0 trillion in assets by 2011 as this sector experiences rapid growth, Morgan Stanley said on Monday.
World-wide, assets of these funds were $487.1 billion at the end of June, up 16.7 percent since the start of the year, Morgan Stanley said in a report. At the end of June there were 596 ETFs with 821 listings, run by 64 managers on 36 exchanges. European-listed ETF assets rose by 30 percent over this period while US-listed ETFs assets rose by 13 percent, and assets in Japanese-listed ETFs rose by 25 percent.
ETFs, which are listed and trade like individual stocks, can give investors exposure to a whole market or sector without the holder having to own the underlying physical assets. These funds enable users to get relatively cheap exposure to a market and now account for a large chunk of daily market turnover. They have spread from equity and bond markets to areas including gold and silver.
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