When last writing about ETF trends in early 2016, we marveled at the torrid pace of growth but also observed a market that was maturing. That process quickly reached a key milestone, with every one of Morningstar’s categories now represented by at least one ETF. Though saturated with product, asset flows continue to gain momentum. We noted two years ago that the “groundwork is also being laid for another phase of rapid growth.”
This acceleration arrived with virtually no lag as the industry reset itself, resulting in more than USD476 billion of net new assets flowing into US domiciled ETFs alone in 2017. This is vastly more than the USD287 bullion seen in 2016, itself a record-breaking year. Robust fund flows in other parts of the world combined with rising markets have elevated global ETF assets to almost USD5 trillion, up from USD3 trillion only three years earlier.