Trackinsight has published its fourth global ETF survey, revealing that investors have an appetite for actively managed ETFs.
Investors’ interest in ETFs remains high despite a slowdown of inflows in 2022 (falling from USD1.2 trillion to USD782 billion), the firm writes. Respectively 56 per cent and 40 per cent of respondents planned to increase their allocation to Equity and Fixed Income ETFs in the next two to three years.
In Europe, investors mainly mention low fees as the primary motivation to use ETFs. In the Americas, high liquidity and tax efficiency are also two fundamental aspects of ETF popularity.
Investors are increasingly open to active strategies; the percentage of respondents already using active ETFs is higher than ever, and switching from mutual funds to active ETFs is trending. Nearly 80 per cent of respondents in the Americas stated they would be more inclined to invest in an active strategy if packaged as an ETF rather than a mutual fund.
Thematic investing for diversification and long-term bet; More than 40 per cent of respondents anticipate an increase in their allocation over the next few years. For the first time, diversification was cited as the primary reason to consider thematic investing, followed closely by strategic allocation.
Investors continue to consider ESG investing but ask for more transparency. On average, 30 per cent of respondents planned to pour more assets into ESG ETFs in the coming years, driven by Europe-based investors, but they remain cautious about greenwashing issues, Trackinsight writes.
ETFs have a role to play in democratising access to crypto; Investors show a strong interest in crypto solutions (single and multi-cryptocurrencies strategies), even in the Americas where spot ETPs are yet to be authorised, the firm says, adding that using ETPs wrappers instead of wallets would ease the access to this market.
“We are excited to release the Global ETF Survey 2023 in collaboration with our partners, J.P. Morgan Asset Management and State Street,” says Philippe Malaise, CEO and founder of Trackinsight. “This report offers an in-depth analysis of the ETF market, and the survey’s findings will provide investors with valuable insights into the industry’s trends and outlook.”
“The momentum in the ETF market shows no sign of letting up, and this survey provides an important view of the trends fueling this growth,” says Travis Spence, Head of EMEA ETF Distribution at J.P. Morgan Asset Management. “Zooming in even further, an active ETF revolution is underway, with nearly 70 per cent of global ETF buyers predominantly using active ETFs for equity, fixed income and thematic exposures. It’s critical that we understand the drivers of value and investor perspectives as we move forward on this journey.”
“We are proud to be a sponsor of the Global ETF Survey 2023 as it provides powerful data for our clients and amplifies the broader trends, we are seeing in the ETF market,” says Ciarán Fitzpatrick, Head of ETF Solutions of State Street in Europe. “Overall, the survey findings validate our recently published research ‘2023 Outlook for ETFs: Innovation and Growth Continues’ which touches on many key ‘megatrends’ we are observing from our perch as the largest global servicer of ETFs.”
