ETF Asset Values Separating Fact And Fiction

The rapid rise of the ETF industry over the past two decades has been nothing short of astounding. Since the launch of the SPDR S&P 500 ETF (SPY) during 1993, more than 1,600 ETFs have hit the market, covering a broad range of assets and strategies.

The value of assets being managed by the ETF industry has expanded nearly 2,000% since 2001, eclipsing the growth of the mutual fund industry over the same period (+120% AUM). That said, the size of the ETF industry is still relatively small compared to the mutual fund industry. Mutual funds manage a combined $15.9 trillion of assets, compared to ETFs $2.9 trillion of AUM.

But the complexity of the exchange-traded product market seems to...