Tactical use of ETFs to fuel asset growth

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Tactical use of ETFs by investors is expected to influence and fuel ETF asset flows through 2010, according to State Street Global Advisors (SSgA).

In its 2009 Exchange Traded Funds Year-End Review and 2010 Outlook report, SSgA says 2009 marked the third consecutive year in which ETF net inflows exceeded $100bn, as investors increased their exposure to ETFs in order to provide efficient exposure to a range of asset classes. SSgA director of strategy and research for the Intermediary Business Group Tom Anderson says: "While the pace of new product launches slowed in 2009, the trajectory of ETF asset growth underscores how these innovative investment vehicles are changing the way investors and advisors construct portfolios." The re...

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