Investors’ penchant for income and total return and a return to equities will fuel the next wave of exchange-traded fund product innovation in 2013, according to State Street Global Advisors latest ETF report.

According to the report, the global exchange-traded product industry attracted nearly $200 billion of positive flows during the first eleven months of 2012 – propelling global ETP assets under management to $1.8 trillion. The asset classes favored by ETF investors this year include US fixed income ($32.2 billion in ETF inflows), emerging markets equity ($20.2 billion), and US equity large cap blend ($16.6 billion). Investors also significantly increased their exposure to commodities/precious metals ETPs ($13.8 billion of inflows) and high yield fixed income ETFs ($12.6 billion).

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