Kirayaka International – Things To Know About ETFs.
Kirayaka International looks at some facts about Exchange Traded Funds that investors should know.
Kirayaka International has seen the popularity of exchange traded funds continue to climb, with industry assets surpassing the $1 trillion mark. In fact, in 2011 ETFs attracted an additional $100 billion in investment, the fifth year running it they have broken this figure look likely to do so again.
The total assets of ETFs are still lagging behind those of mutual funds, with $11 invested in mutual funds for every $1 invested into ETFs. However Kirayaka International predicts that this gap will continue to close.
The fees charged for ETFs are generally lower than those of mutual funds, primarily because there is no funds manager doing the stock picks that needs to be paid. The costs of both ETFs and mutual funds are declining as competition heats up for investors.
The first ETF was launched in 1993 and is called the SPDR S&P500 and it remains the largest ETF with around $96 billion in assets under management.
ETFs were originally only popular with institutions however this is changing rapidly as indivisual investors see the advantages of taking a long term buy and hold position in ETFs. A recent report by Kirayaka International shows that individual investors made up approximately two thirds of ETF deposits.
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