The market for ETFs has expanded to $1.71 trillion from $1.48 trillion at the beginning of the year, according to BlackRock, The Wall Street Journal reports. Data provider Morningstar said equity ETFs saw sales of $122 billion in the 19 months to July, compared to outflows of $33 billion from equity mutual funds.
Though swap-based ETFs constitute systemic risk, Russ Koesterich, global chief strategist for BlackRock’s ETF business, said the industry will rise by up to 30% a year for the next few years. U.S.-listed ETFs represented 39% of market turnover in the second week of August and 14.9% in Europe.
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