EUROPE - The European exchange traded fund (ETF) market grew by over 6% in 2008 to reach a total assets under management (AuM) in excess of €91bn (US$118bn), according to Lyxor Asset Management.
It added net new inflows last year totalled €11.5bn, representing growth of 306% over 2007.
According to the asset manager, at the end of 2008 there were 30 ETF providers active in Europe, with some 1,553 ETFs listed throughout the continent, of which 182 were listed on the London Stock Exchange.
Over the course of the year, ETFs experienced rapid growth from September onwards, with volumes 38% higher than the same month in 2007.
Lyxor said ETFs had grown in popularity due to the cost efficiency, transparency, liquidity and tradability of the assets.
Given the market volatility and equity declines seen throughout 2008, Lyxor said increasing numbers of investors had turned to passive and market-tracking investments due to the difficulties in stock-picking investment approaches.
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