Exchange-traded fund assets are anticipated to reach $7.6 trillion by 2020 thanks to upcoming regulations and an increased number of participants, according to new research.
Equity and bond ETFs in the US barely reacted to two big pieces of market news over the last week, although industry experts have pointed to possible movement of municipal bond ETFs.
Bond ETFs have enjoyed massive popularity over the past few years and total assets now already stand at $750bn, but BlackRock is predicting this figure could double by 2022 as demand continues to grow.
European investors are showing more interest in ETFs this year, with flows into European-listed products so far this year to the end of July breaking past the record net sales seen during the whole of 2016.
Investors are continuing to put money into bond ETFs despite the sector suffering a sell-off in recent weeks, with most fixed income ETF categories delivering a negative return over the first six months of the year.
ETFs have been the driving force behind recent market gains in the US, but don’t expect the S&P 500 to end the year higher than current levels, new research has warned.