Investments

Assets held in exchange-traded funds reached $994.5 billion by the end of 2010, according to data compiled by the National Stock Exchange. That is up 27.1%, compared to a year earlier.

Morningstar announced its 2010 Fund Managers of the Year Wednesday. The awards are based not just on performance in 2010 by over the long term, as well as on fiduciary responsibility for investors’ capital.

Global X Funds on Wednesday launched the Global X Aluminum ETF, which it says it the first exchange-traded fund globally focused on aluminum. The fund tracks the Solactive Global Aluminum Index

U.S. REITs continued to significantly outperform the broader equity market in 2010, the National Association of Real Estate Investment Trusts said Wednesday. U.S. REITs rose 27.95% in 2010, compared to the S&P 500’s 15.06% gain.

Equity funds delivered 16.57% in 2010, with more than one-third of the gains, 6.43%, coming in during the last five weeks of the year, Lipper said.

The markets in 42 of the 48 countries included in the index posted positive returns last year.

The two exchange-traded funds will seek to match the performance of VIX futures indexes.

The Dow Jones Economic Sentiment Indicator jumped 2.2 points to 46.1 in December, after holding steady at 43.9 in October and November. In December 2009, the indicator stood at 38.7.

The U.S. economy will muddle through 2011 even as domestic stocks rake in double-digit percentage returns for the third straight year, said Robert C. Doll, the chief equity strategist for fundamental equities at BlackRock, in a breakfast briefing in New York Tuesday.

Fairholme Funds has launched the Fairholme Allocation Fund, which will seek long-term returns from capital appreciation and income by investing in equities, fixed income, cash and cash equivalent securities.

ProShares on Tuesday launched two volatility exchange-traded funds, the ProShares VIX Short-Term Futures and the ProShares VIX Mid-Term Futures funds.

For more yield, consider actively managed funds with broad discretion and floating rate funds

The CM Commodity Index Fund takes on contango with staggered maturities.

Investors are now pulling money out of bond funds at fastest rate in two years, and U.S. stock funds see their first positive net weekly inflows since April.

Bank of America Merrill Lynch in 2010 reclaimed its title as the top underwriter of municipal debt, thanks mainly to its dominance in the competitive market.

Despite the government’s insider trading case against expert consultants and hedge funds, flows to hedge funds should be strong in 2011, predicts Agecroft Partners, basing its findings on interviews with 300 hedge funds and 1,500 institutional investors.

Despite the government’s insider trading case against expert consultants and hedge funds, flows to hedge funds should be strong in 2011, predicts Agecroft Partners, basing its findings on interviews with 300 hedge funds and 1,500 institutional investors. Agecroft is an alternative investments consultancy.

Nuveen Investments on Dec. 31 completed its acquisition of FAF Advisors, with FAF’s parent company, U.S. Bancorp, receiving a 9.5% stake in Nuveen, plus cash consideration in exchange for investment management of the FAF mutual funds.

WTP Advisors, a tax and business advisory firm, has acquired Sala Associates, an operations consultancy for hedge funds and investment banks.

The economic rebound in 2011 will be slow but steady—but not strong enough to prompt employers to begin hiring again, according to the findings of the latest Turnaround Management Association survey.