* Global ETF assets at $862 bln, highest since April 2008
* ETF growth has outpaced MSCI World Index, YTD
* iShares remains global leader with 48 percent of market
FRANKFURT, Aug. 7 (Reuters) - Global assets under management (AUM) in exchange traded funds (ETFs) hit a record high of $862 billion at end-July, in spite of lower trading volumes in cash equity markets, according to data from Barclays Global Investor's ETF research team.
End-July ETF assets were up 7 percent up on their previous record of $805 billion, in April 2008, and have risen 21.2 percent in the year-to-date, beating a 13.5 percent rise in the MSCI World Index in U.S. dollar terms, according to the latest figures from Barclays Global Investors.
"The global ETF industry has grown from nothing into a multi-billion sector in 16 years, and there are no signs that investor interest in ETFs is fading, despite the current market," said Deborah Fuhr, Global Head of ETF Research & Implementation Strategy at BGI in a statement.
The top three global ETF providers remain Barclays global investor's IShares, which has total of $414.40 billion in assets under management, or 48.1 percent of the market, followed by State Street Global Advisors with $130.59 billion and Vanguard with $66.90 billion.
IShares is also the European leader, where its $72.26 billion AUM is around 39.6 percent of the market. Societe Generale's Lyxor Asset Management follows with $37 billion and Deutsche Bank's db x-trackers is third with $29.8 billion.
ETFs are open-end index funds built to mirror benchmarks such as the DAX or the DJ Eurostoxx50 index. As passively managed index-trackers, ETFs often carry less risk and lower costs for investors than actively managed stock-picker funds. (Editing by Simon Jessop)