More money is pouring into exchange-traded funds (ETFs) and exchange-traded products (ETPs), according to new data from BlackRock's research and implementation strategy group.
The combined assets invested in U.S. listed ETFs and ETPs rose above the $1 trillion mark for the first time, BlackRock says.
The bulk of ETF assets are invested with the "Big Three" – BlackRock (iShares), State Street Global Advisors (SPDRs) and the Vanguard Group. Together they accounted for $778.49 billion at the end of November. The remaining portion is scattered among 30 ETF and ETP providers.
The use of ETFs by financial advisors has contributed to their growth along with lower fees and commission-free ETF trading offered by large brokerage firms like Charles Schwab, Fidelity, TD Ameritrade and Vanguard's brokerage group.
While impressive, the $1 trillion milestone for ETFs and ETPs is just a drop in the bucket. By comparison, mutual funds had more than $11.5 trillion under management at the end of October according to the Investment Company Institute.
