As of the end of quarter three 2010, there were ten exchange-traded funds with primary listings in Spain with 44 total listings and assets of USD1.5bn from two providers on two exchanges.
There were also 389 ETFs/ETPs registered for sale in Spain, according to the report by BlackRock.
Spain is a relatively new market for locally listed products as ETFs were only introduced into the country in November 2005.
At the same time, the use of ETFs by Spanish investors has been relatively high, the report notes.
In 2008 a total of 76 institutional investors in Spain reported using one or more ETFs, ranking fifth out of 42 countries where institutional use of ETFs was examined by the global ETF research and implementation strategy team.
In June 2010 the Spanish securities regulatory body, Comisión Nacional del Mercado de Valores, authorised both investment funds and open-end investment companies to be listed and/or registered as ETFs, giving both vehicles the same regulatory and tax treatment.
The CNMV also gave ETFs greater flexibility, allowing them to replicate not only equity or fixed income indices but also any other type of asset or underlying vehicle that the CNMV expressly authorises, such as commodities or currencies.
"Spanish investors are increasingly attuned to the ETF vehicle’s fundamental and highly attractive attributes – including flexibility, diversification, relatively low cost and transparency," says Deborah Fuhr, global head of ETF research and implementation strategy at BlackRock. "Though the market in Spain is still evolving, we anticipate that both understanding and use of ETFs will continue to expand – which will make the Spanish market a dynamic focal point of ETF growth for years to come."