ETF Inflows On Pace to Exceed $100B in 2011

Against a backdrop of historically low interest rates and global economic uncertainty, U.S. ETFs managed to attract $56.3 billion in new inflows during the first six months of 2011.

This is up from $37.3 billion inflows during the first half of 2010. According to State Street Corporation’s 2011 Mid Year SPDR ETF Outlook, ETF investors increased their exposure to fixed-income, developed international markets, and dividend strategies while shifting away from emerging markets and small cap equities during this same period of time.  

“With demand for income and non-correlated assets on the rise, a growing universe of professional and retail investors are using ETFs to access precise sources of return and improve the diversification of their portfolios,” said Kevin Quigg, global head of the SPDR ETF Capital Markets Group at State Street Global Advisors.  “If flows remain on their current pace, 2011 will mark the fifth consecutive year that ETFs attract more than $100 billion in positive cash flows.”  

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Among the key themes highlighted in the 2011 Mid Year SPDR ETF Outlook report are: 

  • Growth of ETF industry asset flows by category
  • Increased investment in ETFs that provide access to high dividend paying stocks
  • Outlook for ETFs that track real assets and non-U.S. equities and bonds, as investors rethink asset allocation
The 2011 Mid Year SPDR ETF Outlook report will be available at http://www.spdru.com.

Matthew Rothman to Join Acadian

Acadian Asset Management LLC has named Matthew S. Rothman as Director of the firm’s Top-Down Research effort, effective September 2011.

In this role, Rothman will manage the team responsible for the firm’s quantitative, equity-oriented top-down models. He will be a member of Acadian’s senior investment leadership team and report to Chief Investment Officer, John Chisholm.

Rothman served as a Managing Director and Chief Global Quantitative Equity Strategist at Barclays Capital, and held the same position at Lehman Brothers prior to its purchase by Barclays Capital in September 2008. He previously held similar roles at Sanford C. Bernstein and Goldman Sachs Asset Management. Rothman earned his Ph.D. in Finance from the University of Chicago, Graduate School of Business, his M.A. in Statistics from Columbia University, and his A.B. in Philosophy from Brown University.

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“Matthew brings to our firm a deep interest in top-down and macro models, along with a wealth of experience with bottom-up stock selection frameworks,” said Chisholm.  “We believe that this experience will make him very effective at integrating his top-down work with Acadian’s bottom-up research effort that will be led by Malcolm Baker and Wes Chan.”

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