As reported by Bloomberg’s Christopher Condon, assets in U.S. exchange-traded funds may double to $2 trillion before the end of 2015, driven by the growth of non-traditional products, Bank of New York Mellon Corp. (BK) and consulting firm Strategic Insight said.
U.S. ETFs will see the most expansion from commodity-based, leveraged, actively managed, hedge fund-like and other alternative products, according to a statement today from the firms. Non-traditional funds have grown to an estimated 30 percent of ETF assets as of March 31, from 18 percent at the end of 2008, according to the statement.
“The next wave of growth for ETFs is being driven by new asset classes, new indexes and new ways to use ETFs as tools for portfolio construction,” Joseph Keenan, head of global ETF services at New York-based BNY Mellon, said in the statement.
ETF industry assets in the U.S. surged 15-fold to $992 billion in the decade ended Dec. 31, data from the Investment Company Institute show. Stock and bond mutual funds rose 76 percent to $9.01 trillion in the same span, according to the Washington-based trade group.