According to data from Barclays Global Investors, invested assets in ETFs plunged from £480bn in April to £424bn at the end of 2008.
The group says new inflows account for half the rebound in ETF assets, with the remainder coming from the rise in existing ones. ETFs in emerging stock markets have shown the fastest signs of growth with a total of 257 emerging market equity ETFs now being offered with assets having almost doubled from £42.4bn to £77.6bn.
ETFs were first launched in 1993. The products were primarily equity based before moving into the likes of fixed income and commodities.