Barclays Global Investors’ latest ETF Industry Preview, released earlier today, shows that ETF and ETP assets around the world have started to rise again, after a lengthy dip from the peak recorded at the end of 2007. Whether this is a sustainable trend is another matter, as Debbie Fuhr’s team’s figures show that 80% of global ETF assets were in equities at the end of March. With ETF assets worldwide totalling $634 billion at the latest count, Fuhr’s oft-stated target of $2 trillion under management by 2011 seems heavily dependent on the share markets rebounding.
As BGI states elsewhere in the document, European ETF assets have grown more quickly than the US ETF market did during the earliest years of its development – something that’s unsurprising. But there is one area where the US and European ETF markets have converged quite neatly – and that’s in the level of fees charged.
BGI shows that the average total expense ratio (“TER”) for US ETFs at the end of February 2009 was 31 basis points. In Europe the average TER was – 31 basis points.
Full Story: http://www.indexuniverse.com/blog/5704-fee-convergence-and-asset-levels.html
BARCLAYS ETF REVIEW FEBRUARY 2009: http://eu.ishares.com/publish/repository/documents/en/downloads/etf_landscape_february_09_en.pdf