An SI news release said the year ended with a bang, as ETFs took in $27.4 billion in December 2009, the largest monthly inflow to ETFs since the products drew $42.9 billion in December 2008. It was the third year in a row that ETF inflows topped $100 billion, including $149 billion in net inflows in 2007 and a record $176 billion in net inflows in 2008.

Net flows into ETFs were led by flows into emerging markets equity ETFs, followed by gold ETFs, government bond ETFs, commodities ETFs, and natural-resources companies ETFs, according to SI.

U.S. ETFs ended the year with a record $785.3 billion in assets, invested in 893 different ETFs, up from $613.2 billion in ETF assets at the end of 2007 and $535.2 billion in assets at the end of 2008.

SI expects U.S. ETF assets to hit the $900 billion mark in 2010, and hit the $1 trillion mark in 2011. “ETF growth is attracting more big-name players, such as PIMCO and Schwab, which in turn helps accelerate the growth of the ETF market,” said Loren Fox, senior research analyst at Strategic Insight, in the announcement.