For a growing number of investors, exchange-traded funds (ETFs) are being embraced as a mainstay of a diversified portfolio. According to a survey conducted by Charles Schwab, a leading brokerage firm, half of respondents plan to increase their ETF holdings over the next year – a 22 percent increase over those who said the same in 2012. Nearly one in ten investors (nine percent) now hold 50 percent or more of their portfolios in ETFs, more than double the four percent seen last year.

The Principal Financial Group has published a report, entitled ‘A 360 Degree Approach to Preparing for Retirement’, assessing innovations, gaps and trends within the US retirement system. Among its findings, the report identifies key areas of innovation in lifecycle investing and, in particular, paints a rosy picture for the exchange-traded funds industry, suggesting that total ETF assets could top $9.5 trillion by 2020 as more and more financial advisors channel assets into them.

BlackRock, the owner of iShares, the world’s largest provider of exchange-traded funds, has reported third quarter 2013 diluted earnings per share of $4.21, up 15% from a year ago. The firm reported assets under management of $4.1 trillion, up 12% year-over-year, which included £857 billion invested in iShares ETFs, and long-term net inflows over the quarter of $25.3 billion, of which $20.3 billion was contributed by iShares. The ETF business generated $721 million in base fees, representing 35% of the firm’s total base fee revenue.

State Street Global Advisors (SSgA) has launched the actively managed SPDR SSgA Ultra Short Term Bond ETF (ULST) on the NYSE Arca, providing investors with access to a diversified portfolio of ultra short-term bonds. James Ross, senior managing director and global head of SPDR ETFs at SSgA, said: “The SPDR SSgA Ultra Short Term Bond ETF is an attractive option for the cash investor who is seeking incremental yield but does not want to sacrifice liquidity.”

AXA Wealth has introduced several changes to its Elevate platform. Among the changes is an improved stock broking facility offering reduced ETF trading fees through a new aggregated trading service provided by Winterflood Securities. David Thompson, managing director, AXA Wealth Elevate, said: “The improved stock broking service is in response to adviser demand for enhanced and more cost-effective options to trade ETFs…The introduction of aggregated trading for the first time will provide lower trading costs.”

The Canadian exchange-traded fund industry will continue to maintain a strong position as investors seek out investment options to help them effectively manage ongoing market volatility, according to a bi-annual outlook published by BMO Global Asset Management, Canada’s second-largest ETF provider by assets.

S&P Dow Jones Indices has rolled out a trio of fixed income indices aimed at Middle East, North African and Islamic investors. They include the S&P MENA Bond & Sukuk Index and two sub-indices, the S&P MENA Bond Index and S&P MENA Sukuk Index. Commenting on the launch, Charbel Azzi, head of Middle East and Africa for S&P Dow Jones Indices, said: “The new MENA bond and Sukuk indices will provide investors with a relevant and timely measure of the performance and trends in the sukuk sector.”

Nasdaq OMX Group has expanded the Nasdaq BulletShares Index Family with the launch of eight new Nasdaq BulletShares Ladder indices. The indices are traditional bond ladders implemented through indices utilising defined-maturity bond ETFs sponsored by Guggenheim Investments. John Jacobs, Executive Vice President, Nasdaq OMX Global Indexes, said: “These new indexes will provide the financial community a benchmark for tracking one of the most common types of fixed-income investing, bond-laddering.”

In the third quarter (Q3) of 2013, total assets in commodity-linked exchange-traded products (ETPs) rose $8.4 billion to $135.9 billion, marking the first quarterly rise since Q3 2012, according to ETF Securities, a leading London-based provider of commodity ETPs. The rise was driven by a combination of price increases and the largest quarterly inflows into non-gold commodity ETPs since Q1 2012. Nicholas Brooks, Head of research and investment strategy at ETF Securities, said: “The rise in investors’ allocations to commodities reflects a general improvement in investor sentiment towards the asset class”.

Guggenheim Investments, the eighth largest provider of ETFs in the US, has announced the results of a study highlighting a number of investment headwinds. The study reveals that the current low-yield environment and the uncertain future of the US economy have caused concern amongst investors about their ability to save enough for upcoming life events. William Belden, Managing Director, Product Development at Guggenheim Investments, said: “For investors looking to save for life events such as retirement, defined-maturity products [such as Guggenheim’s BulletShares ETFs] could be attractive, given the current volatile economic environment.”