Adam Laird (pictured), head of ETF strategy, at Lyxor ETF reports that 2017 has been a really strong year for Lyxor, with it hitting and the holding the number two position for European inflows into ETFs.
“This year has seen such a resurgence for European equity,” Laird says. “It’s been out of fashion for the last few years but Europe has been the main focus of ETF market.”
The driver has very much been political, Laird believes. “In Europe this year, the vote has been very much for the status quo, we haven’t followed the populism that many feared could destabilise the region.”
The other area where Laird has seen strong growth over 2017, is the theme of objective investing – ETFs which fulfill an objective such as income or a lowering of risk.
“This is an area where ETFs are encroaching upon the space of active managers,” Laird says. “Our biggest growth area is private banks and wealth managers across Europe – we are seeing growth even across the continent as the wealth management space is moving forward in leaps and bounds as more and more are adopting ETFs, where perhaps they had only been dipping their toes in in the past.”
Another big project from Lyxor ETFs has been the modernising of their range. “We have been keen to avoid letting our existing products and investors suffer at the hands of our new launches,” Laird says. “We have been working to do modernisations in terms of structure and costs.”