ETF Assets Hit Record Highs

NEW YORK (TheStreet) -- ETFs are becoming a worldwide phenomenon, a testament to their form and function.

At the end of July, ETF assets hit an all-time high of $862 billion, according to Barclays. The previous asset record of $805 billion had been set in April of 2008.

Funds like State Street's S&P 500 ETF(SPY Quote) and Financial Select SPDR(XLF Quote) are some of the most highly traded names on Wall Street, rivaling stocks like Citigroup(CIT Quote) and General Electric(GE Quote) when it comes to trading volume.

Simple but Smart ETF Plays

In a post-Madoff, recessionary climate, the form of traditional ETFs is increasingly appealing. The low cost, transparent structure of the funds makes the investment strategies clear to consumers. Investors can trade in and out of investments throughout the trading day, rather than depending on a fund company for a redemption.

There are currently 1,768 ETFs with 3,129 listings from 94 providers on 42 exchanges worldwide. In the U.S., the ETF industry's record assets of $582 billion at the end of July bested the previous high of $581 billion in December of 2007.

Where did these assets flow to?

The international scope of the ETF industry is also rapidly broadening. European ETF assets hit a record in July, accounting for $183 billion. The previous record for European funds had been $168 billion in July of 2008. There are currently 753 ETFs listed in Europe, with 1,890 listings from 32 providers on 20 exchanges.

The explosion of the ETF industry, however, has not been without pause. In 2008, nearly 50 funds were forced to shutter due to a lack of investor interest, while many U.S. funds are struggling to attract investor attention.