ETFs have boomed in recent years, particularly as a result of a shift towards more "passive" forms of investing around the world.

Assets invested in the world’s exchange-traded funds sector stood at $13.61 trillion at the end of July – a record – propelled by equity market gains in that month and ahead of the market pullback that hit just over a week ago. 

These index-tracking funds, which have boomed in recent years amid a shift towards more “passive” approaches to investing, drew $216.64 billion in net new money during July, taking year-to-date inflows to $947, according to ETFGI, an organisation tracking the sector.

During July, equity indices rose, with notable gains in markets such as Belgium, Greece and the UAE, the firm said. 

ETFs, which are listed like stocks, give users the ability to track an index or specific sector of equities, bonds, commodities and other markets. The industry has surged over the past two decades and more, driven by the desire to access markets in one hit for a relatively low fee. A decade of low or even negative interest rates after the global financial crash of 2008 lifted equities across the board, denting the attractions of paying higher fees for more actively managed traditional funds. The ETF sector has changed – there are thematic ETFs, and those that seek to capture drivers of return, such as “smart beta” exchange-traded funds, among others.