By the end of 1999 only 33 exchange traded funds existed in the world with assets of $39.
6 billion.
At the end of 2009 there were a total of 1,939 ETFs worldwide with assets totaling over $1.
03 trillion according to research from Black Rock.
Due to the recovery of the market it surged to a 45% increase in 2009.
Money poured into the ETFs as the market made a huge comeback from the damaging financial crisis.
In 2008 the S&P 500 was up 23% in 2009 after falling 38.
5% in 2008.
The Nasdaq, made a heroic recovery of 43.
5% in 2009 after dropping 40.
5% in 2008.
ETFs assets appear to be on path to reach $1.
2 trillion by the end of 2010, according to Deutsche Bank.
In the U.
S.
at the end of 2009 the total number of ETFs was 772.
From 1999 to 2009 they rose from 30 to 698.
From 1999 to 2009 domestic assets grew from $33 billion to $705 billion from 1999 to 2009.
Between 2000 and 2009 the number of ETFs grew from 6 to 815.
As of the third quarter of 2009 global asset hedge funds had reached $1.
53 billion, according to Chicago-based Hedge Fund Research of Chicago.
ETFs could eclipse the assets of hedge funds, according to the Wall Street Journal.
Investors are able to gain quicker access to liquidity helping ETFs grow faster.
ETFs have long surpassed the assets of separately managed accounts which were up to $527 billion at the end of the third quarter of 2009, according to Cerulli Associates.
Commodity funds are another source of which have had aggressive growth.
In 1999 separately managed funds grew by $100 million and by the end of 2009 grew by $22.
2 billion.
Market conditions of 2008 caused investors to be more risk adverse which made investing in ETFs a great option.
When investors began looking for investment options they found that ETFs met their needs and offered less risk, price transparency, liquidity, product structure, holdings transparency and less cost issues.
ETFs became a very attractive investment option.