Global exchange traded funds have grown at a record-breaking level, hitting the $347bn (£235bn) mark in 2015, according to BlackRock.
The fund house claimed its iShares business led the global exchange traded fund industry by winning $130bn (£88.2bn) in new flows in 2015.
The fund house said it saw 13 per cent annual growth rate in 2015.
It also claimed to have set new growth records in the US, with growth totalling $97bn (£66bn) against $87bn (£59bn) in 2014, and in Europe, with growth reaching $34bn (£25bn) from $20bn (£14bn) over the same period.
Mark Wiedman, global head of iShares at BlackRock, pointed out the growth record has emerged despite disappointing equity markets in 2015.
“Institutional and retail investors are using ETFs more and more, whether as tools to express a view on almost any financial market, or for long-term core investments.”
He said more retail and institutional investors use bond ETFs to help access fixed income markets at known, transparent prices and with “impressive liquidity”.
“Bond ETFs had an exceptionally strong 2015, growing at 22 per cent annual organic growth rate globally.
“During quiet times and volatile times in 2015, iShares bond ETFs performed as clients have come to expect.”
According to Mr Wiedman, investors have accelerated the use of ETFs as substitutes for futures and swaps.
“As banks’ balance sheet costs have ratcheted up, so too has the cost of using futures and swaps. ETFs are now typically a more efficient substitute for major global equity indices and for bond indices like credit derivatives.”
Rachel Lord, head of EMEA iShares at BlackRock, said: “ETF uptake amongst European investors shows no sign of abating.
She said over the course of the year, the firm has established a variety of product and distribution partnerships with private banks, brokerage firms and wealth managers across the region.
“This is a strong indication that advisers and asset allocators are increasingly looking to ETFs as the most cost-efficient, flexible building blocks for their client portfolios, in a fee-based environment.
“Underlying these developments has been an ongoing commitment to making the financial ecosystem on which ETF trading relies as effective as possible.”
katherine.denham@ft.com
