Half of investors will own an ETF by 2020: BlackRock

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Paul Romano
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Half of investors will own an ETF by 2020: BlackRock

Post by Paul Romano » Thu Mar 15, 2018 12:03 pm

Half of investors will own an ETF by 2020: BlackRock

https://www.marketwatch.com/story/half ... 2018-03-13

Exchange-traded funds, long one of the fastest-growing segments of Wall Street, could become the dominant investing vehicle in just a few years — not even 30 years after they were first introduced.

According to a BlackRock survey, ETFs are just two years away from hitting a remarkable milestone, where half of all U.S. investors have a position in at least one ETF.

“ETFs aren’t just having a moment. They’re creating a movement,” wrote Martin Small, the head of U.S. and Canada iShares at BlackRock, in an open letter entitled, “How did we ever live without them?”

Currently, one in three U.S. investors own at least one ETF, according to Small, who cited an internal BlackRock survey. Last year, one in four investors owned one. In other words, in a remarkable sign of how quickly ETFs have been adopted in recent years, the percentage of investors who own one is poised to double over a three-year period.

BlackRock BLK, would likely be among the biggest beneficiaries of any ongoing or accelerating ETF growth. The asset manager, through its iShares suite of funds, has the largest market share of any ETF provider. According to Morningstar Direct, it has $1.38 trillion in ETF assets, or 39.3% of the market. Vanguard, in second place, has $872 billion in assets, good for slightly less than 25% of the market

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