ETFs explode between 2009 and 2012

Over the past three years, ETFs have grown. Their AUM, number, and breadth of underlying exposure have all increased.

March 2009		March 2012
$3, 371, 897, 842	Fixed Income + PREFs	$15, 711, 085, 830
$12, 215, 634, 054	Equities Canada	$23, 746, 093, 196
$955, 243, 445	US Equities	$3, 044, 659, 208
$2, 773, 716, 637	International + EM	4, 227, 937, 760
$641, 727, 434	Gold + Commodities	$1, 582, 648, 935
$221, 492, 341	Portfolios	$727, 210, 566
$20, 179, 711, 754		$49, 039, 635, 495

Investors are having a tough time keeping up with the close to 250 ETFs available in the market. In the Canadian ETF market, the top 25 ETFs command 75% of AUM. Fifteen of these were iShares prior to their recently completed Claymore acquisition. Post-acquisition, 20 of the top 25 are iShares. Four BMO ETFs (two of which are intricately involved with each other—ZWB and ZEB) and one Horizons ETF round out the top 25.

In order to gather enough assets, new ETFs must bring something unique to the marketplace. This is a critical challenge for the seven current providers and any potential new entrants.

Yves Rebetez, CFA, managing director and editor, ETFinsight.ca