Unbelievable Growth Of The ETF Industry Over Ten Years

Vern Sumnicht CEO | CIO |
Categories
Education
ETFs

The global exchange-traded fund (ETF) industry is about $9 trillion. This amount has grown in recent years, but still pales in comparison to the size of the mutual fund industry of over $20 trillion. A look at how these markets compare to each other in 2011 vs. 2021 can be seen below to illustrate how much the size of the ETF market has grown over the last 10+ years.

 

 

Here at iSectors, we are proponents of using ETFs in our allocation models as opposed to mutual funds. A few quick reasons for this are listed below:

  • Generally lower fund expenses compared to actively managed mutual funds.
  • Avoid internal trading costs typically incurred by mutual funds.
  • Greater tax efficiency: avoid taxable year-end capital gain distributions.
  •  Improved liquidity: can purchase or sell intraday.