Cerulli survey cites factors fueling ETF growth

Among the report's additional funds:

• In 2013, total mutual fund assets grew by nearly 20 percent, largely due to substantial asset growth in passively managed products;
• Across the board, equity products dominated the mutual fund landscape in 2013, capturing flows of greater than $232 billion year-to-date.
• Total ETF assets expanded by 1.9 percent in December, ending the year with nearly $1.7 billion. ETF equity strategies also grew substantially in 2013, averaging net flows of $17.9 billion per month.
• Managers wrestle with meaningful advantages and disadvantages tied to different MLP fund structures more than other investment strategies. Assets in excess of $8 billion are spread across different vehicles, including CEFs (37 percent), mutual funds (27 percent), ETFs (19 percent), and ETNs (17 percent), with some structured as C corporations and others as registered investment companies (RICs);
• A barbell trend emerged in 2013. On one hand, hands-off passive management among indexed products fueled a fee race to the bottom. On the other, investors paid a premium to glean more specialized exposures, including short-duration and unconstrained fixed income.