Bringing you live news and features since 2006 

Up arrow

European ETF assets have more than doubled over the last five years


European exchange-traded fund assets have more than doubled over the last five years, reaching EUR362 billion as at 30 September 2014, according to a report by Morningstar.

The European ETF market remains highly concentrated, with the top three providers managing more than two thirds of the assets.
The need for innovation and product differentiation has increased; strategic beta, also known as ‘smart beta’, has become the new battleground for providers, while more investors are using the ETF vehicle strategically, specifically as core portfolio building blocks, and providers are cutting fees and launching low-cost ‘core’ ETF ranges.
ETF portfolio management is a highly automated process, using sophisticated technology solutions for day-to-day portfolio-building and risk-management tasks, though there is still room for skilled human intervention. ETF providers are meeting concerns about counterparty risk in ETFs by adapting practices, such as switching from synthetic to physical replication methods and capping or, in some cases, stopping securities lending activity altogether.
Hortense Bioy, Morningstar’s director of European passive strategies research, says: “The European ETF marketplace has clearly entered a new phase in its development. Over the past two years, we have seen an evolution in ETF usage, increasing competition, and heightened product differentiation. Regulation has spurred much of this change, as new types of investors are adopting the vehicle. Our report details how ETF providers are responding to this evolving landscape, and also aims to shed light on their portfolio management practices. We hope our work will assist investors in their ETF provider selection process.”
The report, A Guided Tour of the European ETF Marketplace, provides reviews of Europe’s 10 largest UCITS ETF providers: iShares, db X-trackers, Lyxor, UBS, Source, Amundi, Vanguard, State Street, Deka, and ComStage. 

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by