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ETF Specialist

ETFs Roll On

The U.S. ETF industry finished 2009 with nearly 50% year-over-year asset growth.

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The U.S. ETF industry closed out 2009 with $785 billion in assets under management, up from $744 billion at the end of November, and $533 billion at the end of 2008. This represents year-over-year total ETF asset growth of nearly 50%. Roughly 40% of this asset growth is attributable to net inflows during the past year while the remaining 60% was the result of strong market performance.

Domestic-Equity Funds Lead the Way in December, Thanks to the SPDR
Despite being the only broad asset class to show net outflows in 2009, U.S. stock ETFs closed out the year with nearly $20 billion in net inflows in December. Helping bolster the category's flows was the ubiquitous  SPDRs (SPY), which attracted more than $11.2 billion in net new assets last month. Still, for the full year, SPY saw approximately $21 billion in net outflows. Note that excluding SPY, which--because of its unrivaled liquidity--is a favored tool among money managers looking to temporarily "equitize" cash positions and manage investor inflows and redemptions, the U.S. stock category would have actually shown net inflows of roughly $6.2 billion for the 2009 calendar year.

John Gabriel does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.