Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Exchange Traded Funds - US - December 2010

Although ETFs have been available since 1993, it is only relatively recently that they have exploded in popularity. A direct competitor of mutual funds, ETFs offer the same benefits as mutual funds but with additional trading flexibility.

ETFs are perhaps the fastest growing investment product available. ETF assets under management (AUM) have grown exponentially over the past several years, and that growth shows no sign of abating. Advisors show increasing interest in the products, driving interest on the parts of their clients. And there has been so much press about ETFs that no client who is even remotely interested in being involved in making investment decisions for themselves could help but at least consider using ETFs.

However, ETFs still make up only a small percentage of Americans’ portfolios. The primary reason for this is that most people, while they may have heard of them, don’t really know what they are or understand how to use them. Many advisors are also not as conversant on how to make ETFs work for clients as they could be. While investments in ETFs continue to grow and AUMs continue to set records both for certain single ETFs and the industry as a whole, the lack of knowledge about the product means that there is still upside potential for the ETF market. Mintel’s research found that only 5% of respondents hold ETFs in their portfolios. That leaves a lot of room for advisors to add ETFs. The challenge will be for those advisors to get their clients comfortable enough with the product to allow them to add the products to their list of investments.

The following themes are discussed in this report:

  • Historical growth patterns for the ETF business, and where there are still opportunities to grow
  • The type of ETFs that are expected to experience the greatest growth
  • Who the leading ETF players are and how the balance of power may be shifting among them
  • What drives the investor’s decision as to what ETF provider to use

What you get

What's included

Why buy from us?


Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.


Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.


A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Scope and Themes

      • What you need to know
        • Data sources
          • Consumer survey data
            • VMS
              • Abbreviations
                • Abbreviations
                  • Companies mentioned in this report:
                  • Executive Summary

                    • Industry overview
                      • ETFs are one of the fastest-growing investment products available
                        • Growth will occur in emerging economies as well as specialty niches
                          • Figure 1: ETFs - estimated net inflows, 2009-October 2010
                        • Active ETFs are beginning to challenge mutual funds
                          • Vanguard is asserting itself in the ETF market
                            • Improved educational efforts will be crucial in fueling ETF growth
                            • Insights and Opportunities

                                • Key points
                                  • Better ETF education may lead to more business
                                    • Improving economies in developing and emerging countries
                                      • Active ETFs are targeting mutual fund customers
                                        • Women may be an increasingly attractive segment
                                          • Online trading – boon for ETFs and for advisers?
                                          • Inspire Insights

                                              • Trend—Alpha Moms
                                              • Market Size

                                                • Key points
                                                  • Assets in ETFs are higher than ever
                                                    • Figure 2: U.S. ETF assets October 2009-October 2010
                                                  • ETF choices are expanding
                                                    • Figure 3: Number of ETFs launched, 2001-09
                                                    • Figure 4: Number of ETFs, October 2009-October 2010
                                                • Competitive Context

                                                  • Key points
                                                    • Advisors are most loyal to Vanguard
                                                      • Vanguard is growing its ETF business with its core low-cost strategy
                                                          • Figure 5: Net cash flows of top ten ETF providers, September-October 2010
                                                        • Vanguard continuing aggressive ETF expansion
                                                          • Pricing is still the name of the game
                                                            • More competition from the smaller providers
                                                              • Figure 6: Largest ETF issuers by ETF asset market share and YTD cash inflows, October 2010
                                                          • Market Drivers

                                                            • Key points
                                                              • More commission-free ETF trading drives some investment choices
                                                                • Potential regulations may affect ETFs
                                                                  • Financial advisors remain interested in ETFs
                                                                    • Figure 7: Products in which advisors planned to increase participation in first six months of 2010, January 2010
                                                                  • ETFs increasingly important to institutions
                                                                      • Figure 3: Top 15 ETFs by institutional holders, 2009
                                                                    • Growth in emerging economies will drive interest in certain ETFs
                                                                      • Active traders are expected to increase in number
                                                                      • Leading Companies

                                                                        • Key points
                                                                          • The ETF marketplace is highly concentrated
                                                                            • Figure 8: Top ten ETF providers, by assets, October 2009-October 2010
                                                                          • BlackRock
                                                                            • State Street Global Advisors
                                                                              • Vanguard
                                                                                • Charles Schwab
                                                                                  • PowerShares
                                                                                    • Van Eck
                                                                                      • ETF Securities
                                                                                        • PIMCO
                                                                                        • Innovation and Innovators

                                                                                          • Key points
                                                                                            • New ETFs overcome criticism of bond funds
                                                                                              • TD Ameritrade makes buying ETFs easier
                                                                                                • Newly developed ETFs are innovations
                                                                                                • Marketing Strategies

                                                                                                  • Key points
                                                                                                    • Overview
                                                                                                      • Print advertising
                                                                                                        • Figure 9: Newspaper print ad, BlackRock iShares, 2010
                                                                                                        • Figure 10: Newspaper print ad, BlackRock iShares, 2010
                                                                                                        • Figure 11: Newspaper print ad, BlackRock iShares, 2010
                                                                                                        • Figure 12: Newspaper print ad, Vanguard, 2010
                                                                                                        • Figure 13: Newspaper print ad targeted to advisors, Vanguard, 2010
                                                                                                        • Figure 14: Newspaper print ad, Ameritrade, 2010
                                                                                                      • Direct mail advertising
                                                                                                        • Figure 15: Direct mail ad, Vanguard, 2010
                                                                                                        • Figure 16: Direct mail piece, Vietnam ETF prospectus (first page), Van Eck, 2010
                                                                                                      • Online and email advertising
                                                                                                        • Figure 17: Online advertising, Fidelity, 2010
                                                                                                        • Figure 18: Online advertising, Vanguard, 2010
                                                                                                        • Figure 19: Online advertising, Charles Schwab, 2010
                                                                                                      • Television advertising
                                                                                                        • Figure 20: TD Ameritrade, television ad, 2010
                                                                                                        • Figure 21: E*Trade, television ad, 2010
                                                                                                        • Figure 22: State Street Global Advisors, television ad, 2010
                                                                                                        • Figure 23: Charles Schwab, television ad, 2010
                                                                                                    • The Consumer

                                                                                                      • Key points
                                                                                                        • Who invests in ETFs?
                                                                                                          • Figure 24: Investment choices, by gender, September 2010
                                                                                                          • Figure 25: Investment choices, by age, September 2010
                                                                                                          • Figure 26: Investment choices, by income, September 2010
                                                                                                          • Figure 27: Investment choices, by gender and income, September 2010
                                                                                                          • Figure 28: Investment choices, by race, September 2010
                                                                                                          • Figure 29: Investment choices, by ownership of other investment products, September 2010
                                                                                                        • Reason for investing in ETFs
                                                                                                          • Figure 30: Reasons for investing in ETFs, September, 2010
                                                                                                        • Reasons for not investing in ETFs
                                                                                                          • Figure 31: Reasons for not investing in ETFs, by gender, September 2010
                                                                                                          • Figure 32: Reasons for not investing in ETFs, by gender and income, September 2010
                                                                                                          • Figure 33: Reason for not investing in ETFs, by age, September 2010
                                                                                                          • Figure 34: Reason for not investing in ETFs, by income, September 2010
                                                                                                          • Figure 35: Reason for not investing in ETFs, by gender, September 2010
                                                                                                          • Figure 36: Reason for not investing in ETFs, by age, September 2010
                                                                                                          • Figure 37: Reason for not investing in ETFs, by gender and age, September 2010
                                                                                                        • Type of ETFs owned
                                                                                                          • Figure 38: Type of ETFs owned, September 2010
                                                                                                        • ETF information sources
                                                                                                          • Figure 39: Where get ETF information, September 2010
                                                                                                        • Investment activity
                                                                                                          • Figure 40: Investment activity, by gender, September 2010
                                                                                                          • Figure 41: Investment activity, by age, September 2010
                                                                                                          • Figure 42: Investment activity, by investment ownership, September 2010
                                                                                                        • ETF activity
                                                                                                            • Figure 43: ETF investment activity, September 2010
                                                                                                          • Using advisors
                                                                                                            • Figure 44: Attitudes about investment advisors, by gender, September 2010
                                                                                                            • Figure 45: Attitudes about investment advisors, by age, September 2010
                                                                                                            • Figure 46: attitudes about investment advisors, by investment type, September 2010
                                                                                                          • Companies used to trade ETFs
                                                                                                            • Figure 47: Companies used for ETF account, September 2010
                                                                                                            • Figure 48: Company used for active online investor brokerage accounts, April 2009
                                                                                                          • Reasons for choosing ETF carrier
                                                                                                            • Figure 49: Reasons for choosing company for investment/ETF account, September 2010
                                                                                                          • Satisfaction with ETF provider
                                                                                                            • Figure 50: Satisfaction with ETF provider, September 2010
                                                                                                        • Appendix—Trade Associations

                                                                                                          Companies Covered

                                                                                                          • Allianz Group
                                                                                                          • American Express Company (The)
                                                                                                          • Barclays Global Investors, N.A.
                                                                                                          • Bear Stearns
                                                                                                          • BlackRock, Inc.
                                                                                                          • Bloomberg L.P.
                                                                                                          • Charles Schwab Corporation
                                                                                                          • Credit Suisse Group
                                                                                                          • Dow Jones & Company Inc.
                                                                                                          • E*TRADE Financial Corp.
                                                                                                          • Financial Industry Regulatory Authority (FINRA)
                                                                                                          • Financial Planning Association
                                                                                                          • International Monetary Fund
                                                                                                          • Lipper Inc.
                                                                                                          • McKinsey & Company
                                                                                                          • Merrill Lynch & Co. Inc
                                                                                                          • Morningstar, Inc.
                                                                                                          • Northern Trust Corporation
                                                                                                          • Pacific Investment Management Company LLC
                                                                                                          • Scottrade Inc.
                                                                                                          • TD Ameritrade Holding Corporation
                                                                                                          • The New York Times Company
                                                                                                          • The Vanguard Group, Inc.
                                                                                                          • U.S. Bureau of Labor Statistics
                                                                                                          • WisdomTree Investments, Inc.

                                                                                                          Exchange Traded Funds - US - December 2010

                                                                                                          £2,684.63 (Excl.Tax)