Monday 2 February 2009

Institutions go for US ETFs

Exchange traded funds listed in the US are growing in popularity with institutional investors, most notably investment managers and hedge funds.

During the first nine months of last year, nearly 2,500 institutional investors worldwide used one or more ETFs listed in the US with the biggest increase coming from asset managers and hedge funds, according to research from Barclays Global Investors.

Asset managers accounted for more than 70 per cent of institutional users. Hedge funds, the second biggest category, represent 16 per cent of users. But hedge funds showed the biggest growth in use, with 48 more users at the end of September compared to a year earlier, representing a 14 per cent rise to 387. The number of asset managers using US ETFs also grew, but only by 2.5 per cent to 1,781.

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