(Oct 2): Smart beta exchange-traded products (ETPs) saw assets under management (AUM) grow 28.4% to US$707 billion ($956.6 billion) globally in the first half of the year, according to US-based Morningstar, a provider of independent investment research.
In Morningstar’s annual Global Guide to Strategic-Beta Exchange-Traded Products, it pointed out that 204 products were introduced in the market for the 12 months ended June 30. “This was slightly down from 211 in the previous year,” says the report. Most of the products were introduced in Europe — more than all the other regions combined.
ETPs include exchange-traded funds and exchange-traded notes. The former tracks the index movement of stocks, bonds, gold or commodities while the latter is an unsecured debt note issued by institutions that investors can trade on the exchange or hold to maturity.