ETF Assets Grew 25% in 2013 Says ICI

The U.S. exchange-traded-fund industry added a net of 99 new ETFs, or growth of 8.2%, for a total of 1,293 funds, according to the Investment Company Institute.

The combined assets of the nation’s ETFs grew 1.9% in December and 25.2% for all of 2013 to end the year at $1.675 trillion, reported the Institute, the trade group for the mutual fund and ETF industries better known as the ICI.

Ironically, while saw fixed income saw the greatest growth with 36 new funds, or 17.8%, it posted the smallest asset growth, just 1%, to $245.9 billion. No doubt, this is a result of the massive outflows as bond investors reposition their portfolios in anticipation of the Federal Reserve reducing its bond purchasing as part of the Quantitative Easing program.

Meanwhile, even though the hybrid category added just one new fund in 2013 for a total of 14, it posted the greatest asset growth, 121%, to $1.45 billion.

The total number of domestic equity funds, which includes commodity ETFs, grew 4.9% to 603. Domestic equity assets jumped 35% to $1.028 trillion. Global and international equity funds grew 8.4% to 438, while assets under management jumped 21.3% to $398.85 billion.

During December, the value of all ETF shares issued, or net issuance, exceeded that of shares redeemed by $19.97 billion, a 39% drop from the net issuance of $32.58 billion in December 2012. Net issuance for all of 2013 was $179.87 billion, a 3% drop from 2012’s net issuance $185.39 billion.

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