NEW YORK (Big Picture Exclusive) – Gargantuan money manager Blackrock reported on Friday that assets in U.S.-listed exchange-traded funds and exchange-traded products have surpassed the $1 trillion milestone for the first time.  Combined assets in U.S.-listed ETFs and ETPs reached $1.027 trillion late Thursday, BlackRock said. That includes 894 ETFs with assets of $887.2 billion from 28 providers on two exchanges and 185 ETPs with assets of $115.5 billion from 20 providers on one exchange, it said.

There is growing speculation surrounding what is believed to be the next breakthrough product in the ETF marketplace:  Single stock tracking ETFs.  Unlike their index-based cousins, these new single stock trackers would, as the name implies, track only a single stock, trade at exactly the same price as the stock to which they’re linked and consequently eliminate the need for single stock ownership.  A top executive with a money management firm who is familiar with his company’s plans to launch such a product and was granted anonymity so he could speak freely, put it this way:  “Think about the prospect of, say, a GE tracking ETF — an investor could capture over 99% of the movement of GE while simultaneously forfeiting any claim to a dividend and paying us up to35 basis points to manage the ETF.  What’s not to like?  We think this product paves the way for the ETF marketplace to collect its next trillion in assets.”

Category: ETFs, Markets

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13 Responses to “And in ETF News”

  1. Dow says:

    ETF – the next big bubble?

  2. Scott Frew says:

    I’d modestly propose that the new single stock ETFs be diiferentiated from their predecessors, perhaps with a slightly different acronym. How about the WTF?

  3. mutton says:

    Yeagh WTF – can anyone explain a single stock ETF? Thanks

  4. [...] How ETFs plan to raise their next trillion – single-stock ETFs!  Is anything dumber?  Probs not.  (TBP) [...]

  5. Bruman says:

    Can we have an actively overtraded single stock ETF, please? It would free up so much time and make accounting work so much easier!

  6. wally says:

    You really need some kind of a little tag that says ‘humor’. Its so early in the morning and some of us are not quite awake yet…



    re: Single Stock, you forgot to mention ‘being shorn of your Proxy’, as well..~

  8. nweaver says:

    Don’t laugh: I can see some brilliant Wall Street types doing this…

    Especially since it allows the ETF ‘stock’ to be effectively unlimited quantity, since what the ETF share allows is a ‘redemption on demand’ of the underlying stock, so like gold-standard paper-money, you have a lot more ‘currency’ out there than actual gold…

    It basically becomes a stock-exchange traded, strike price of $0 option…

    So barry, patent this stupid idea now. So that when some brilliant wall street master of the universe comes up with it, you can laugh at his sorry A@#$ and shut the near-fraud down…

  9. Mike Radigan says:

    Short the ETF long the security.

  10. VennData says:

    LOL, sounds like GLD. A single-thingee ETF, aka WTF.

    …only a higher management fee of 40 basis points and a higher 28% tax rate.

  11. cthwaites says:

    How about a leveraged short single stock ETF, on BLK. Then it could be double leveraged on the ETF industry without all that nasty disclosure for a 40s Act Fund. And you could charge 1 and 10 easily. Contact Cayman Is office.

  12. philipat says:

    So let me see if I understand this correctly. I give up the dividend, say 3%, to save 1% in annual fees in a fund. I can’t quite understand why I should not just spend the 7 Bucks to buy the stock outright. If the dividend falls, the stock will decline either way?

  13. panskeptic says:

    This is some of that “financial innovation” that Wall St. trumpeted to attack renewed regulation. A couple more innovations like this and we’ll all be sleeping in our cars.