Stock market ETFs continue to be impacted as investors appear to be spooked by changing monetary policy and limited boost from White House economic incentives.
The SPDR S&P 500 fund (SPY), from State Street Global Advisors, has reached the milestone 25 years after it first started trading. Its underlying index is the bellwether for the US economy, and has a high concentration in sectors like technology and financials.
Momentum from 2017 has continued so far this year, with the MSCI World Index rising in most of the trading sessions since the 1 January.
ETF assets increased by 34.3% to $3.42 trillion at the end of December from $2.55 trillion at the end of 2016 – the fastest growth in the industry since 2009.
ETF investing remains in most case a passive way of investing. In their pursuit of performance, ETF providers tends to look for other ways to enhance their results. Securities lending is one common and relatively simple method to generate extra returns for the ETF.
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.