2014 has undoubtedly been the year of ETFs and ETPs, with the global industry logging a record-breaking $2.76 trillion in assets.

2014 has undoubtedly been the year of exchange traded funds and exchange traded products, with the global industry logging a record-breaking $2.76 trillion in assets, according to research from ETFGI.

Year-to-date net inflows are also at their highest ever level, clocking $275.3 billion - higher than previous full-year net inflows. Research and consultancy firm ETFGI predicts assets will reach $3 trillion during the first half of 2015. ETFs are typically open-ended, index-based funds which can be bought and sold like ordinary shares on a stock exchange. They offer exposure across developed, emerging and frontier markets, equities, fixed income and commodities. ETPs, meanwhile, are similar to ETFs in the way they trade and settle but do not use an open-end fund structure.

With regards to geographic spread, $1.98 trillion in ETF/ETP assets was logged at the end of November in the US, compared to $472.1 billion of assets in Europe.

Net new assets in November were the fourth-highest on record at $42 billion, while the $42.4 billion  of net inflows into US-listed ETF/ETPs broke previous records. European ETF/ETPs saw NNAs of $5.6 billion.

Not all ETF/ETPs faired equally, however. Whilst those focused on equities saw inflows of $38.8 billion and those for fixed-income garnered $4.9 billion, commodity ETF/ETPs logged net outflows of $221 million.

“Economic news in Europe during November was not positive with the OECD warning that Europe was the 'locus of weakness' in the global economy - criticising the ECB's efforts to combat economic stagnation. Many found the ECB’s investment plan as lacking new money and new ideas with even the Pope criticising the plan. During November the US market continued its positive trend with both the S&P 500 and the Dow closing up 3 per cent for the month. Developed markets ended the month up 1 per cent while emerging markets declined  1 per cent,” Deborah Fuhr, managing partner at ETFGI said in a statement.

With many asset managers and investment houses continuing to launch exchange-traded funds and products for their clients, their growing popularity does not look to subside any time soon.  ETFGI expects US assets to hit $2 trillion within the next few weeks, while the European industry is predicted to reach $500 billion in the first half of next year.