Global exchange-traded products market surpasses $1 trillion

Assets under management in US and European exchange-traded products (ETPs) surpassed the trillion-dollar mark at the end of last year, according to research from Deutsche Bank and BlackRock.

Deutsche expects the ETP market to grow further this year to reach $1.2 trillion, and possibly even $1.4 trillion in the event of a continued bull market in equities. BlackRock reported in December that 2,508 ETPs with assets of $1.137 trillion from 129 providers were listed on 42 exchanges around the world as at the end of November 2009.

The ETP market incorporates exchange-traded notes (ETNs) and exchange-traded funds (ETFs). Added to these, exchange-traded commodities are available in Europe, while the US has exchange-traded vehicles.

The BlackRock research puts the figure for the ETF market in the US and Europe at a record $982 billion. “At the end of November 2009, the global ETF industry had 1,907 ETFs, with 3,678 listings, assets of $982.28 billion from 103 providers on 39 exchanges around the world.”

Not all areas have experienced growth, however. BlackRock reports that the number of exchanges with official listings fell by four to 39 and the average daily trading volume in US dollars decreased by 15.7% to $68 billion.

In the event of a bullish market in 2010, Deutsche says it expects the European ETP market to grow by 30–35% to €210 billion ($304 billion). The bank expects the US ETP market to surpass the $1.2 trillion mark this year and experience growth of between 25% and 30%.