ETFs have weathered the global financial crisis far better than many other investment products, thanks to their simplicity, liquidity and low costs. It's why a successful ETF sector could play a crucial role in the recovery of the European investment industry.
The European ETF industry is confident and coming of age at an opportune time. In contrast to other areas of European asset management, ETF providers believe they are creating value for investors—and investors share this view.
Reflecting this view, more than two-thirds of respondents say they plan to increase the number of ETF offerings in the next two years.
Do you plan to increase or decrease the number of products you offer over the next two years?
Yet the value of European ETFs as a percentage of mutual fund assets is still less than half the comparable figure in the more mature US market (3.5% vs. 8%).
A successful ETF sector could play a crucial role in the recovery of the European investment industry.
Most survey participants see the European market as being five to 10 years behind the US market in size, sophistication and product development. The European market lacks the self-directed investment culture of the US, with most retail investments sold via advisers or bank branches.
Learn more about the future of the European ETF market:
- Drivers of growth
- Scale and consolidation
- Regulations, taxes and other costs
- Global markets for European providers