As many might have seen in our publication yesterday, ETFs set a new record for annual inflows last year despite the market turbulence. This piece looks closely at the data and comes up with five key takeaways from it. Firstly, international ETFs took in nearly half of all inflows. Secondly, the S&P 500 Trust (SPY) saw its biggest outflows ever as hot money left the sector. Though at the same time, the ETF market expanded very strongly despite it. Thirdly, low-cost and smart beta ETFs took up the extra “slack” that big ETFs like SPY left, growing strongly. Fourthly, leveraged ETFs grew twice as fast as ETFs as a whole, showing a robust expansion. Finally, BlackRock’s IShares upset Vanguard to take in the most assets this year.
FINSUM: We find the ETF market very interesting and this is a good piece which covers the major changes that occurred in 2015.