MONDO

ETP Landscape: In Search of Sectors

Sector ETPs hold $262 billion in assets, accounting for 15% of the global equity ETP total. Yet they are attracting a disproportionate share (23%) of all inflows this year.….


Financials, real estate and technology funds currently are the most popular US sector ETPs, making up almost half of total assets. The industry mix has changed significantly over time.

The relative sizes of US sector ETPs largely mimic industry benchmark weights. The exception: an outsized $28 billion held by real estate funds.

Sector ETPs now make up 36% of all US sector fund assets (mutual funds and ETPs). That’s up from 10% in 2004 and more than double the 16% ETP share of all US equity fund assets.

Source: ETFWorld.co.uk – BlackRock ETP Research

The Federal Reserve’s surprise September no-taper announcement removed some risk of near-term volatility and took some pressure off rate-sensitive assets. As a result, stocks rallied for much of the month and investors moved heavily back into Developed Markets Equity ETPs. Investors also began to warm up to Emerging Markets Equities.

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