’Twas the night before Christmas, and all through the house, not a creature was stirring, not even a mouse…or a fiscal cliff, or a China bubble, or a European debt crisis….
Indeed, if the latest figures about the exchange-traded fund (ETF) industry are to be believed, investors are putting aside their worries and are instead showing some holiday cheer about the state of the world. To show their joy (and their renewed appetite for risk), they’re loading up on stocks. According to data from EPFR Global, global stock ETFs took in more than $12 billion in new money during the week ending Dec. 12, 2012, as investors snapped up non-U.S. stock ETFs in particular.
The positive December numbers cap off a year that has seen the ETF industry grow at a record pace. The latest Exchange Traded Product (ETP) Landscape Report from BlackRock shows total global ETP assets up 23% from 2011 with assets now standing at $1.9 trillion as 2012 comes to a close.
Canada led the charge, with the highest growth rate of any region. The Canadian ETP market grew 29% this year, up to $55 billion from $42 billion in 2011. ETPs are also helping investors gain exposure to the Asia Pacific Region and China—new products in these areas proved to be top sellers in 2012. An interesting story given the relative size of the region—Asia Pacific accounts for only 6% of the global asset pool, yet this is a huge focus for ETF investors right now.
Whether or not investors will continue the holiday buying spree in 2013 remains to be seen—the fiscal cliff is looming large, and global economic woes can’t be ignored forever. But for now, the holiday cheer is certainly buoying the industry and showing us that risk is definitely at the top of the wish list for investors right now.