Attracting new investors will be key for the European ETF industry, Lipper warns

Assets managed by the ETF industry grew by 6.87% reaching €267.05bn in the third quarter of 2012, according to the latest report published by Lipper on the ‘Future of the European ETF Industry’.

The European ETF market remains highly concentrated. Top 10 ETFs account for 24.54% of overall assets under management. Top 5 ETF promoters account for 76.16% of overall assets under management.

The number of newly ETFs launched in 2012 was 151 as at end the third quarter, significantly lower than in the 310 new ETF launched at year end 2011.

Although the majority of new funds are equity funds, the majority of assets invested in these new funds can be found in the bond sector, Lipper said.

Detlef Glow, head of Lipper EMEA research, recently said that even though the general promoter and fund landscape might change, the European ETF market will not change its concentrated pattern of AuM in the foreseeable future.

“Attracting new investors will be key for the European ETF industry if it is to continue to grow and ETFs on bond markets and strategy indices may become the key driver for future growth,” he said.

Moreover, there is a clear trend towards more products in an ever greater number of niche investment areas.

“New distribution models like the availability of ETFs on retail fund platforms might be introduced to reach retail investors and their advisers,” he said.

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