Oscar Time for ETFs

It was "Oscar" time for the exchange-traded fund industry last week as ETF providers descended on New York to celebrate and honor themselves and recognize industry achievement.

The third annual Global ETF Awards provide a window into how the ETF industry views itself and its key players. In a confidential ballot, industry members voted in 18 categories for the people and companies they believe made the biggest contributions to the industry over the past year. They can vote for themselves, but many take it seriously and vote for competitors whom they find truly deserving.

ETFs are baskets of stocks that are similar to mutual funds but are traded during the day like stocks.

In a sign of the industry's growth, the number of votes from industry organizations have nearly tripled, from 114 in 2005 to 315 this year. In addition, this year the vote was opened up to academics, financial consultants and independent investment advisers, bringing the total to more than 400.

"There's not just one dominant player anymore. There are many players," says Arlene C. Reyes, the event's hostess and chief operating officer of Exchangetradedfunds.com, an independent Web site that tracks the industry and co-created the awards. "This event allows the industry to recognize the various players and their achievements."

Reyes says that bringing together the industry players from around the globe gives them a chance to understand how their respective markets work. This allows them to see that they all have problems with getting their domestic regulatory bodies to get product released quickly.

Also, understanding how markets work in other countries will give companies a better chance for success in those markets. This will become more important in the near future, says Reyes, as the industry expands and creates more listing across exchanges.