Institutional users of ETFs continue to grow

Latest data from the ETF Research and Implementation Strategy team at Barclays Global Investors reveals the number of institutions reported holding ETFs has grown by 12% in 2008, according to the latest report "Annual Review of Institutional Users of ETFs in 2008".

In the four quarters of 2008 a total of 2,926 institutional investors worldwide have reported using one or more EFTs. Over the past 11 years, the number of institutional users has increased 1,673%. This represents a CAGR of 29.9%.

Institutional investors in 42 countries have reported using at least one ETF in 2008. The United States, the United Kingdom, Canada, Spain and Switzerland have the largest number of institutional users and account for 83%.

Investment advisors are the largest category of users accounting for 74% of institutional users. The CAGR for this category over the past 11 years is 31.1%.

Use by hedge funds has increased and currently hedge funds are the second largest category representing 15%. Over the past 11 years the CAGR of hedge funds has been 42.4%.