12.20.21
Wall Street Money Machine Booms as 445 ETFs Debut in Epic Year
by: Sam Potter and Emily Graffeo
The US ETF industry, a corner of Wall Street already enjoying a reputation for explosive growth, has gone supernova, with a record 445 new products in 2021 so far, according to data compiled by Bloomberg. Behind the rapid expansion is a deluge of new cash as investors chase an economic recovery from the coronavirus, while equity mutual funds fall out of favor. About $900 billion has flowed into the ETF market since the start of the year, a record. All that means the number of ETFs Americans can choose from has jumped 19% since the end of 2020. About a quarter of all trading ETFs are less than two-years old, according to Bloomberg Intelligence. For the first time, new actively managed ETFs outnumber their passive counterparts with 298 debuts versus 147.
Read the full article on Wall Street Journal