Financial Times recently disclosed that the asset management scale of ETF may surpass that of traditional index funds for the first time. It is understood that the scale of global passive investment management exceeded 15 trillion US dollars last year.

According to the American Association of Investment companies (ICI), global ETF assets under management stood at $7.71 trillion by the end of 2020, slightly less than the $7.76 trillion of traditional index funds. However, due to large capital inflows this year, ETF's assets under management reached $8.33 trillion at the end of March.

ETFWhy is it so popular?

As a "god base", ETF can be bought and sold like stocks.Have the advantages of both stocks and funds. Because of its particularity, ETF has developed rapidly since it was invented in 1993. According to ICI, as of the end of last year, there were a total of6725ETF, while traditional index funds only have3196.

It is worth noting that ETF is more popular than traditional funds because of the relevant tax breaks in the United States. Sean Sean Collins, chief economist of ICI, pointed out that as of the end of March, the size of ETF in the United States was5.58 trillion dollarsWhile traditional index funds only have5 trillion dollars.

Under this trend, the popularity of leveraged ETF is also increasing. In the past 10 years, the assets of such products are50 billionTo70 billionThe US dollar fluctuated between dollars, but by the end of March this year, it had risen to nearly135 billiondollar.

The Fed pointed out in 2019: "over the past few decades, active investment strategies are gradually shifting to passive investment strategies. This continuous shift has greatly affected the entire financial market, and this shift will continue to affect the entire financial system in the coming years."