Global ETF/ETP asses reached a new record of USD2.76 trillion at the end of November 2014 and are expected to break through the USD3 trillion milestone in the first half of 2015, according to figure from ETFGI.
The strength of ETP trading is illustrated by the increase in assets for products linked to Nasdaq indexes, which have risen above USD103 billion so far in 2014. Interestingly, 56% of that total is represented by products outside the PowerShares QQQ, which is up from 45% in 2012.
Currently, there are 166 ETPs benchmarked to Nasdaq’s indexes and, in 2014 alone, 27 new ETPs began tracking Nasdaq Indexes (including one that switched benchmarks for a Nasdaq index). Innovative indexes such as the Nasdaq Biotechnology and Nasdaq Buyback Achievers indexes played a principal role, but a number of new global launches made their mark on this year’s growth as well.
The Nasdaq Biotechnology Index became a global phenomenon as products linked to the index launched for the first time in Korea and London, and for the second time, in Israel. There are now seven ETPs globally tracking the Nasdaq Biotechnology Index.
The Nasdaq Buyback Achievers brand continued to expand, as PowerShares launched ETPs linked to the Nasdaq International Buyback Achievers Index and the Nasdaq Global Buyback Achievers Index launched in the US and London, respectively. Three additional ETPs were launched in Israel by Psagot and KSM Financial Instruments Ltd (KSM) which track the Nasdaq International and Nasdaq US Buyback Achievers Indexes.
Assets in the Guggenheim BulletShares family of ETFs reached USD6.3 billion in the 18-months since the joint venture between Nasdaq and Accretive Asset Management began. These products are designed to track the Nasdaq BulletShares family of Indexes.
In November 2014, two ETFs were launched by The Bank of Montreal in Hong Kong tracking Nasdaq Indexes. The BMO Hong Kong Banks ETF and the BMO Asia High Dividend ETF mark the first ETPs tracking Nasdaq Indexes in Hong Kong.
First Trust launched the first ETFs tracking a Nasdaq AlphaDEX index in October 2014. Two ETFs were launched, one in the US and one in Europe, tracking the Nasdaq AlphaDEX Eurozone Index.