Continued growth for ETPs


Having seen a record-breaking year for inflows in 2012, the global Exchange Traded Products (ETP) market is attracting increased investment from institutional, professional and retail investors alike, according to BlackRock.
For Dodd Kittsley, global head of ETP research for BlackRock, ETPs have proven themselves to be a way to access assets classes in a cost-efficient and effective way, whatever the market conditions.
"Hot on the heels of an impressive 2012, the market has continued to grow in the early months of 2013, and we expect this to continue during the rest of this year," he said.
Kittsley said that the dynamics of the ETP market were also changing and developing.
"As ETPs become better known and understood in different regions and amongst different types of investors, uptake is fast increasing," he said.
"Added to this, ETP providers are expanding and deepening their coverage of different assets classes and regions, allowing investors to put ETPs to use in new ways and employ them to access areas where they couldn't before, such as emerging market debt.
"ETPs were once thought of as primarily equity-based funds for institutional investors, but today's milestone suggests this is certainly no longer the case."
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