Market Trends of North America ETF Industry
Rising Investment on Equity ETF
Equity ETFs have characteristics of mutual funds and the high return potential of stock investment. They are traded on the stock exchanges with the flexibility of buying and selling anytime within the trading sessions. Almost 45% of the investors in Canada have expressed an increase in interest in Equity Index ETF. In addition rising value of total net assets under the management of exchange-traded funds in the United States is creating a positive externality for the investment in Equity ETFs as well. Post COVID-19, the performance of stock market indices in the United States and Canada are observing a continuous increase, leading to a rise in interest among the population for investing in the products having a segment of investment in shares as well, for which Equity ETF has emerged as a major option.
United States Leading the Region
The number of ETFs in the United States has observed a continuous increase over the years existing at more than 2,700 in number with a continuous increase in assets under management. Last year more than 400 new ETFs were created in the country, helping in continuously driving the ETF market. Median household income in the country has observed a continuous increase over the years at more than USD 75,000 per year, driving the population to search for emerging investment products in the market. The types of ETFs existing in the United States include Index ETFs, International ETFs, Sector ETFs, thematic ETFs, and dividend ETFs, providing investors with a wide range of ETF products. Post Covid share share of Americans investing in stock markets had observed a continuous increase with more than 60% of the population investing in and driving the market for ETF linked with stocks and equities.
