Volatile markets and increased regulatory scrutiny have been some of key contributing factors to the ongoing growth of the European ETF market. This has been demonstrated by 55 consecutive months of net inflows, and data points indicating that European Asset will hit €1trn by 2020 and double to €2trn by 2024. This is against a backdrop fueled by competition from the European ETF market providers who are all trying to tap into demand by great product diversification, best in class research, rock-bottom prices and portfolios that can offer exposure to ever-conscious ESG investor demand...
This article breaks down some of the of the key drivers behind this ongoing growth....
Earlier this year, ETFs and ETPs listed in Europe celebrated a record 55 consecutive months of net inflows, only 19 years after the first ETFs in Europe were launched.
The signs are that this growth will only continue.
“ETF adoption across Europe is set to accelerate, spurred by favourable regulatory changes like MiFID II, innovation, and an increasing acknowledgement of the long-term benefits of low-cost investing,” says Hortense Bioy, director, passive strategies and sustainability research, Morningstar.
“Even under conservative assumptions, assets in European-domiciled ETFs are well on course to hit €1trn by 2020. And we now believe that assets could reach €2trn by 2024, under the positive assumptions of accelerating inflows and upward-trending market prices,”
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