GLOBAL - Investors continue to pour capital into exchange traded funds.
Research from Morgan Stanley shows ETF assets under management in November increasing by US$9.97bn on October to reach US$147.81bn.
Since the beginning of the year, AUM in ETFs have grown by US$43.85bn.
Normally aimed at the retail-end, ETFs allow investors to buy a basket of stocks through a single security that tracks an index. They are considered to be open-end mutual funds, listed and traded like shares.
These latest figures follow the earlier European launch of Nasdaq’s QQQ ETF as more institutions are attracted to ETFs. According to Morgan Stanley vice-president and ETF analyst Deborah Fuhr, institutional investors are increasingly finding applications for ETFs including core equity holdings, sector and style plays, international diversification and portfolio hedging.
The majority of growth in AUM has come from listings in the US (US$25bn), Japan (US$12.85bn) and Europe (US$5.04bn).
During November, 8 new ETFs were launched, one was delisted, and 14 were cross listed. This brought the total number of ETFs worldwide to 281 with 361 listings by the end of the month.
So far this year, 80 new ETFs have been listed, 52 have been cross-listed and one has been delisted.
Average trading volume was down marginally in November at 175 million shares or US$8.1bn, from 198 million shares or US$8.8bn at October-end.
Europe led the way with the largest number of managers - 12 - followed by the US (6) and Korea and Japan (4).
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