What is the difference between an ETF and an exchange traded fund?

What is the difference between exchange-traded and mutual fund? Exchange-traded funds (ETFs) trade on stock exchanges throughout the day, while mutual funds are bought or sold at the net asset value (NAV) at the end of the trading day, and ETFs often have lower expense ratios than mutual funds.

What are themed ETFs?

Thematic ETFs are exchange-traded funds (ETFs) that concentrate on particular industries, trends, or themes like technology, sustainability, or developing markets . They provide a way to invest in themes or trends that align with your interests or investment strategy.

What is an example of an exchange traded fund ETF?

Passive Index ETFs Another example is the Invesco QQQ (QQQ) ETF , which tracks the Nasdaq 100 and consists of the 100 largest and most actively traded nonfinancial domestic and international companies on the Nasdaq. It offers investors broad exposure to the tech sector.

Why buy an ETF instead of a mutual fund?

ETFs typically track a specific market index, sector, commodity, or other asset class, exposing investors to a range of securities in a single investment. Their benefits include liquidity, lower expenses than mutual funds, diversification, and tax advantages .

Should I invest everything in ETFs?

If you're looking for an easy solution to investing, ETFs can be an excellent choice . ETFs typically offer a diversified allocation to whatever you're investing in (stocks, bonds or both). You want to beat most investors, even the pros, with little effort.

Are thematic ETFs worth it?

They are necessarily exposed to theme-specific risk, so will typically trade with a higher level of volatility than a broad market core exposure. However, when blended with broad-based core holdings, a thematic ETF can add diversification benefits, as well as outperformance potential, to your portfolio.

What are two facts about exchange-traded funds ETFs?

ETFs are traded in the markets during regular hours, just like stocks are. Mutual funds can be redeemed only at the end of a trading day. Stocks are traded during regular market hours. Some ETFs can be purchased commission-free and are cheaper than mutual funds because they do not charge marketing fees.

How do ETFs work for dummies?

A cross between an index fund and a stock , they're transparent, easy to trade, and tax-efficient. They're also enticing because they consist of a bundle of assets (such as an index, sector, or commodity), so diversifying your portfolio is easy. You might have even seen them offered in your 401(k) or 529 college plan.

How do ETFs make money?

Most ETF income is generated by the fund's underlying holdings. Typically, that means dividends from stocks or interest (coupons) from bonds . Dividends: These are a portion of the company's earnings paid out in cash or shares to stockholders on a per-share basis, sometimes to attract investors to buy the stock.

Which ETF is the safest?

Vanguard S&P 500 ETF Exchange-traded funds (ETFs) are one of the safer types of investments out there, as they require less effort than investing in individual stocks while also increasing diversification.

What is the biggest risk in ETF?

Market risk The single biggest risk in ETFs is market risk.

Is an exchange fund the same as an ETF?

Exchange funds provide investors with an easy way to diversify their holdings while deferring taxes from capital gains. Exchange funds should not be confused with exchange traded funds (ETFs), which are mutual fund-like securities that trade on stock exchanges .

What is an ETF in simple terms?

ETFs or "exchange-traded funds" are exactly as the name implies: funds that trade on exchanges, generally tracking a specific index . When you invest in an ETF, you get a bundle of assets you can buy and sell during market hours—potentially lowering your risk and exposure, while helping to diversify your portfolio.

What is the difference between ETF and fund of funds?

FoFs are actively managed funds while ETFs are considered to be passively managed funds . Hence the cost or the expense ratio is higher in the case of FoFs as compared to ETFs.

Is S&P 500 a mutual fund or ETF?

An index fund is a type of mutual fund that tracks a particular market index: the S&P 500, Russell 2000, or MSCI EAFE (hence the name). Because there's no original strategy, not much active management is required and so index funds have a lower cost structure than typical mutual funds.

Topic: Exchange traded funds (ETFs) (2024)

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Exchange traded funds (ETFs) are investment funds traded throughout the day on a stock exchange, just like shares. In this way they differ from traditional mutual funds, which only trade once a day (based on their price at the end of the day). Most ETFs are created in order to replicate the performance of market indexes, such as S&P 500, by holding the same securities in the same proportion as a particular stock market or bond index. The advantages of ETFs over mutual funds are, among other things: lower costs; the possibility of tracking the performance of the whole market rather than investing in single stocks; and potentially better investment results, as active fund managers tend to underperform the market. These benefits have led to the number of exchange traded funds worldwide growing an astonishing 3,000 percent since 2003.

Who is the largest ETF provider?

Many ETF providers do not just offer a single, individual ETF, but a range of different funds which track various indexes, and invest in different types of security. For example, Blackrock is the largest ETF issuer in the United States, with 33 percent of the market share as of July 2023. However, under the iShares brand, Blackrock managed nearly half of the 15 largest individual ETFs in the U.S. by assets under management. Other leading ETF providers are State Street and Vanguard, while the largest individual ETF is the SPDR S&P 500 ETF, managed by State Street, with assets reaching around 427 billion U.S. dollars as of July 2023.

Size of the ETF industry

The assets under management (AUM) of global ETFs increased from 204 billion U.S. dollars in 2003 to 9.6 trillion U.S. dollars in 2022. The regional distribution of the AUM of ETFs was heavily skewed towards North America, which accounted for around 4.5 trillion U.S. dollars of the global total. Reviewing ETF market trends the United States had the highest potion of ETF securities. The level of equity ETFs in the U.S. was roughly five times higher than in the European or Asia-Pacific markets.

This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.

Published by Statista Research Department, Jan 10, 2024

Key insights

Value of assets managed by exchange traded funds globally 9.6tr USD

Detailed statistics

Worldwide ETF assets under management 2003-2022

Number of exchange traded funds worldwide 8,754

Detailed statistics

Number of ETFs globally 2003-2022

Detailed statistics

Largest ETFs by market cap globally 2023

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Investment FundsLargest ETFs by market cap globally 2023

Investment FundsBiggest fixed income ETFs traded in the U.S. 2023, by AUM

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Overview

Premium Statistic Number of regulated open-end funds worldwide 2011-2022
Premium Statistic Number of ETFs globally 2003-2022
Premium Statistic Worldwide ETF assets under management 2003-2022
Premium Statistic ETF assets as a portion of the global market Q2 2023, by region and asset type

Overview

Premium Statistic Number of regulated open-end funds worldwide 2011-2022
Number of regulated open-end funds worldwide 2011-2022
Number of regulated open-end funds worldwide from 2011 to 2022
Premium Statistic Number of ETFs globally 2003-2022
Number of ETFs globally 2003-2022
Number of exchange traded funds (ETFs) worldwide from 2003 to 2022
Premium Statistic Worldwide ETF assets under management 2003-2022
Worldwide ETF assets under management 2003-2022
Development of assets of global exchange traded funds (ETFs) from 2003 to 2022 (in billion U.S. dollars)
Premium Statistic ETF assets as a portion of the global market Q2 2023, by region and asset type
ETF assets as a portion of the global market Q2 2023, by region and asset type
ETF assets as a portion of the global market in Q2 2023, by region and asset type (in trillion U.S. dollars)

Regional distribution

Premium Statistic U.S. listed ETF asset size worldwide, by region 2023
Premium Statistic Number of ETFs in the U.S. 2003-2022
Premium Statistic Number of listed ETFs on Euronext primary market 2014-2022
Premium Statistic ETFs listed in Europe 2005-2022
Premium Statistic Assets under management of ETFs listed in Europe 2005-2022

Regional distribution

Premium Statistic U.S. listed ETF asset size worldwide, by region 2023
U.S. listed ETF asset size worldwide, by region 2023
Total assets under management (AUM) by U.S. listed exchange traded funds (ETFs) worldwide in July 2023, by region (in million U.S. dollars)
Premium Statistic Number of ETFs in the U.S. 2003-2022
Number of ETFs in the U.S. 2003-2022
Number of exchange traded funds (ETFs) in the United States from 2003 to 2022
Premium Statistic Number of listed ETFs on Euronext primary market 2014-2022
Number of listed ETFs on Euronext primary market 2014-2022
See Also
US ETFs: how to buy the best equivalent ETFs in the UK
Number of exchange traded funds (ETFs) listed on Euronext primary market from 2014 to 2022, by location
Premium Statistic ETFs listed in Europe 2005-2022
ETFs listed in Europe 2005-2022
Number of exchange traded funds listed in Europe from 2005 to February 2022
Premium Statistic Assets under management of ETFs listed in Europe 2005-2022
Assets under management of ETFs listed in Europe 2005-2022
Total assets under management (AUM) of exchange traded funds listed in Europe from 2005 to February 2022 (in billion U.S. dollars)

Fund performance

Premium Statistic Largest ETFs by market cap globally 2023
Premium Statistic Largest ETFs in the U.S. in July2022, by assets under management
Premium Statistic Biggest Asia Pacific ETFs traded in the U.S. 2022, by AUM
Premium Statistic Biggest European ETFs traded in the U.S. by AUM 2022
Premium Statistic Biggest ETFs listed in Europe based on net inflows as of February 2022
Premium Statistic Biggest fixed income ETFs traded in the U.S. 2023, by AUM

Fund performance

Premium Statistic Largest ETFs by market cap globally 2023
Largest ETFs by market cap globally 2023
Market capitalization of largest exchange traded funds (ETFs) worldwide as of January 16, 2023 (in billion U.S. dollars)
Premium Statistic Largest ETFs in the U.S. in July2022, by assets under management
Largest ETFs in the U.S. in July2022, by assets under management
Leading exchange traded funds (ETFs) in the United States as of July, 2023, by assets under management (in million U.S. dollars)
Premium Statistic Biggest Asia Pacific ETFs traded in the U.S. 2022, by AUM
Biggest Asia Pacific ETFs traded in the U.S. 2022, by AUM
Largest exchange traded funds (ETFs) in the Asia Pacific region traded in the United States as of April 2022, by assets under management (in billion U.S. dollars)
Premium Statistic Biggest European ETFs traded in the U.S. by AUM 2022
Biggest European ETFs traded in the U.S. by AUM 2022
Largest European exchange traded funds (ETFs) traded in the United States as of April 2022, by assets under management (in billion U.S. dollars)
Premium Statistic Biggest ETFs listed in Europe based on net inflows as of February 2022
Biggest ETFs listed in Europe based on net inflows as of February 2022
Leading exchange traded funds (ETFs) listed in Europe in February 2022, by monthly net inflows (in million U.S. dollars)
Premium Statistic Biggest fixed income ETFs traded in the U.S. 2023, by AUM
Biggest fixed income ETFs traded in the U.S. 2023, by AUM
Largest fixed income exchange traded funds (ETFs) traded in the United States as of January 2023, by assets under management (in billion U.S. dollars)

Smart beta

Premium Statistic Biggest smart beta ETFs traded in the U.S. by assets 2022
Premium Statistic Factor-based products currently making up AUM worldwide 2020-2023
Premium Statistic Factor-based products currently making up AUM, by region 2023
Premium Statistic Main reason for using smart beta ETF products worldwide 2020-2023
Premium Statistic Main reason for using smart beta ETF products worldwide by region 2023

Smart beta

Premium Statistic Biggest smart beta ETFs traded in the U.S. by assets 2022
Biggest smart beta ETFs traded in the U.S. by assets 2022
Largest smart beta exchange traded funds (ETFs) traded in the United States as of January 10, 2022, by assets under management (in billion U.S. dollars)
Premium Statistic Factor-based products currently making up AUM worldwide 2020-2023
Factor-based products currently making up AUM worldwide 2020-2023
Factor-based products currently making up assets under management (AUM) of professional investors worldwide from 2020 to 2023
Premium Statistic Factor-based products currently making up AUM, by region 2023
Factor-based products currently making up AUM, by region 2023
Factor-based products currently making up assets under management (AUM) of professional investors worldwide in 2023, by region
Premium Statistic Main reason for using smart beta ETF products worldwide 2020-2023
Main reason for using smart beta ETF products worldwide 2020-2023
Professional investors' primary reason for using smart-beta exchange traded fund (ETF) products worldwide from 2020 to 2023
Premium Statistic Main reason for using smart beta ETF products worldwide by region 2023
Main reason for using smart beta ETF products worldwide by region 2023
Professional investors' primary reason for using smart-beta exchange traded fund (ETF) products worldwide in 2023, by region

ESG ETFs

Premium Statistic Number of ESG ETFs worldwide 2006-2022
Premium Statistic Global ESG ETF assets 2006-2023
Premium Statistic Largest ESG ETFs by AUM in the Americas 2023
Premium Statistic Top ESG ETFs worldwide 2023, by YTD performance
Premium Statistic Most targeted UN SDG of ESG ETFs worldwide 2024, by assets

ESG ETFs

Premium Statistic Number of ESG ETFs worldwide 2006-2022
Number of ESG ETFs worldwide 2006-2022
Number of ESG ETFs worldwide from 2006 to November 2022 (in billion U.S. dollars)
Premium Statistic Global ESG ETF assets 2006-2023
Global ESG ETF assets 2006-2023
Global ESG ETF assets from 2006 to November 2023 (in billion U.S. dollars)
Premium Statistic Largest ESG ETFs by AUM in the Americas 2023
Largest ESG ETFs by AUM in the Americas 2023
Largest ESG ETFs in the Americas as of July 2023, based on assets under management (in million U.S. dollars)
Premium Statistic Top ESG ETFs worldwide 2023, by YTD performance
Top ESG ETFs worldwide 2023, by YTD performance
Top ESG exchange traded funds (ETFs) worldwide in 2023, by YTD performance
Premium Statistic Most targeted UN SDG of ESG ETFs worldwide 2024, by assets
Most targeted UN SDG of ESG ETFs worldwide 2024, by assets
Most targeted Sustainable Development Goal (SDG) of ESG ETFs worldwide in 2024, by assets (in billion U.S. dollars)

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Topic: Exchange traded funds (ETFs) (2024)

Who is the largest ETF provider?

Size of the ETF industry

Key insights

Editor’s Picks Current statistics on this topic

Current statistics on this topic

Related topics

Recommended

Recommended statistics

Overview

Overview

Regional distribution

Regional distribution

Fund performance

Fund performance

Smart beta

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ESG ETFs

ESG ETFs

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