ETFs On Pace To Top $1 Trillion Asset Mark In Early Q1

• DECEMBER 10, 2010, 11:49 AM ET

Report: ETFs On Pace To Top $1 Trillion Asset Mark In Early Q1

By Murray Coleman

Assets in U.S.-based ETFs are rising at a pace that should cross the $1 trillion mark sometime in the first quarter of 2011, says market tracker Strategic Insight.

At the end of November, U.S. ETF assets stood at a record $940.5 billion, estimates analystLoren Fox in a note to clients today.

Driven by strong contributions from investors into stock funds, U.S.-based ETFs had $7.2 billion inflow during November, according to the firm.

Meanwhile, bond ETFs had net outflows.

"Roughly 84% of ETF assets are in equity ETFs, so any improvement in investor confidence that increases demand for equities will propel ETF flows and assets," Fox adds.

While not providing any specific fund breakdown, a report by the National Stock Exchange on Dec. 3 listed Vanguard Emerging Markets ETF(VWO) as particularly popular in November. (The NSX data is by far the most fresh and comprehensive on ETFs so far.)

Also, flows in funds such as iShares Silver(SLV), iShares MSCI Germany (EWG) and theMaterials Select Sector SPDR (XLB) came to light earlier through a report by Birinyi Associates.