Published on by Jared Cummans on September 24, 2013 | Updated April 4, 2014

Exchange traded funds burst onto the scene in 1993, forever changing the world of investing. With so many funds now available, it can be difficult to take a look at the ETF industry as a whole.

1994: ETFs on the Books

1995: The Bull Run Begins

SPY was still the only fund in existence at the end of 1995, but as markets began to soar, that trend would not last very long. SPY returned a handsome 38% for its shareholders in 1995. That same year saw Microsoft ((MSFT )) crack the top 10 holdings of the fund, while familiar faces like Exxon Mobil and Coca-Cola ((KO )) still dominated the top slots.

1996: The ETF World Doubles

The SPDR MidCap Trust Series I (MDY, B ) debuted in April of 1995, but wouldnt complete its first full calendar year until the close of 1996. As the internet bubble continued to build, stocks reaped the rewards with SPY and MDY returning 22% and 15% respectively. The year would see Intel (INTC ) explode onto the scene as it became the fourth largest component of the S&P 500, beating out big name firms like Merck (MRK ) and IBM (IBM ).

1997: International ETFs Earn Their Keep

1998: The Final Slowdown

1999: The Internet Bubble

At the height of the internet bubble, most ETFs were enjoying strong returns, as there were only five products that lost ground on the year. This would also be the first year that a funds price would double, as the MSCI Malaysia ETF (EWM, A ) gained 106% during the 12 month stretch. 1999 would also be the first full year for the sector SPDR products, which made their debut in December of 1998.

2000: Recession Takes Over

Investors may be surprised to learn that the first full year for the QQQ ETF (QQQ, B+ ) was a miserable one, as the tech-heavy fund surrendered more than 35% as U.S. recession took over. Just a handful of ETFs were able to finish higher during 2000, with XLF and XLP being the lone bright spots, raking in 25% in an otherwise weak year.

2001: The ETF World Surges

Forty-five funds hit the market in 2000, making for a total of 75 ETFs trading during the 2001 calendar year. Though the economy was still in rough shape, the exchange traded world started to run higher as investors quickly adopted the easy to use, transparent products. The majority of the ETF world finished the year in the red, but the MSCI South Korea Capped ETF (EWY, B- ) was able to rake in 46%, putting it well above the competition for the year.

2002:  The End is in sight

2003: Back on Top

After a rough patch, benchmarks and markets all around the world soared in 2003 with not a single ETF turning in a negative performance on the year. 2003 also marked the first calendar year for 10 ETFs, all of which made their debut in the latter half of 2002. The years best performer was the MSCI Brazil Capped ETF (EWZ, A- ), which grew 117%, the largest one year gain of any ETF to that date.

2004: Bullish Momentum Continues

Though concerns over a growing housing bubble began to emerge, equities continued to rise in 2004, with only one ETF logging in a negative performance on the year. 2004s best performer was iShares MSCI Mexico ETF (EWW, A ), which gained 24% during the year. Both the MSCI Belgium ETF (EWK, B ) and the MSCI South Africa ETF (EZA, B- ) also delivered strong returns. The PHLX SOX Semiconductor Sector Index Fund (SOXX, B+ ), however, was the only ETF to lose momentum, shedding 14% during the year.

2005: U.S. Housing Market Becomes Frothy

2006: Bernanke Takes Over

With new Fed Chairman Ben Bernanke at the helm, global equity markets continued to push higher, with the Dow Jones Industrial Average closing above 12,000 for the first time ever in 2006. Wall Street also welcomed 155 new ETFs, including the popular Dividend Appreciation ETF (VIG, A ) and the Silver Trust (SLV, C+ ). 2006s best performer was the Golden Dragon Halter USX China Portfolio (PGJ, B ), which gained 53%, followed by strong performances by the MSCI Spain ETF (EWP, B ) and the MSCI Mexico Capped ETF (EWW, A ).

2007: The Housing Bubble Burst

By 2007, investors across the globe were well aware of the housing industrys dire position, forcing mortgage companies to begin filing for bankruptcies and rating agencies to downgrade hundreds of mortgage-backed securities. Not surprisingly, the Dow Jones U.S. Home Construction Index Fund (ITB, A- ) and the SPDR Homebuilders ETF (XHB, A+ ) were the worst performers in 2007, shedding roughly 50%. The MSCI India Index ETN (INP, C+ ), however, managed to come out on top, gaining 86% during the year.

2008: Financial Titans Begin To Fall

During 2008, Wall Street witnessed several financial titans, including Lehman Brothers, Bear Stearns, Countrywide Financial, Fannie Mae, Freddie Mac, and Merril Lynch, fall, causing a ripple effect of catastrophic events to hit the financial system. The vast majority of ETFs saw negative annual returns, with the Ultra Financials (UYG, A ) and Ultra Real Estate (UYM, B+ ) funds hit hardest during the year. Most of the gainers of the year were highly leveraged and inverse funds, such as UltraShort Semiconductors(SSG, C+ ), UltraShort Technology (REW, B ), and UltraShort Russell MidCap Growth (SDK, C+ ).

2009: Markets Finally Bottom

2010: Commodities Boom

2011: A Flat Finale

Amidst the eurozone crisis, a narrowly missed U.S. debt crisis, and continuing quantitative easing efforts, equity markets finished off 2011 essentially where they started. Investors flocked to their favorite safe-haven investmentU.S. Treasurieswhich pushed the years top performer, the Ultra 20+ Year Treasury Fund (UBT, B ) up 72% during the year. Other Treasury funds, including ZROZ, EDV, and DTYL also posted strong performances. Not surprisingly, the worst performer of the year was the Daily 20 Year Plus Treasury Bear 3x Shares (TMV, A- ), which lost 69%. For the ETF industry, however, 2011 saw the most new launches, with a record-breaking 309 new funds hitting the market.

2012: Avoiding Fiscal Cliffs

Though global economic uncertainty and the U.S.s looming fiscal cliff were points of concern for investors in 2012, equities still managed to log in relatively attractive gains during the year. The top performers of 2012 were the Daily Inverse VIX Short-Term ETN (XIV, B+ ), which gained 155%, followed by the Short VIX Short-Term Futures ETF (SVXY, A- ) and the DB 3x Italian Bond Treasury Bond Futures ETN (ITLT, A- ). Landing at the bottom of the barrel were several volatility ETFs, including UVXY, TVIX, CVOL, and VXX.

2013: All Aboard the Bull Train