ETF: soon 10,000 billion dollars in index funds

Posted on 20 Dec. 2021 at 17:07Updated 20 Dec. 2021 at 18:37

Small drop in speed for ETFs. Listed index funds (“exchange traded funds”) and other products that replicate market indices saw their outstandings decline 0.6% in November, to $ 9.920 billion (about 8.8 trillion euros), according to ETFGI. At the end of October, the absolute record of 10,000 billion dollars seemed to be within reach, with 9,980 billion in assets managed around the world by some 9,700 ETFs and ETPs (“exchange traded products”).

These investment vehicles, mostly passively managed, have experienced the strongest growth in the asset management industry for several years. But in recent weeks, stock market volatility has reminded us that these funds are ultra-dependent on the health of day-to-day financial markets, with more than half of their total assets invested in equities.

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