ETFs set to soar:
Posted on: 11 Jul 2012 by James Farmer

As IFAs become even more sophisticated in their investment approach, ETFs are coming more and more onto clients’ radar and into their portfolios.

 

New Independant Research would seem to back this up:

 

78% of fund managers expect the value of assets invested in European ETFs and ETPs to increase over the next three years.

Other key findings include:

• 56% of fund managers expect assets to grow by over 10%
• 20% expect assets to grow by over 30%
• Only 7.6% expect the size of the market to fall
• Lyxor estimates that the size of the market is around €241 billion
• 43% of fund managers surveyed believe European listed ETPs and ETFs will see a net inflow of assets between now and 2015 because they are competitively priced
• 24% said AUM will grow because they offer great liquidity
• 18% said that the market will grow because they allow investors to access asset classes that can be otherwise difficult to invest in
• 71% of the fund managers interviewed believe that equity based European listed ETPs will see the biggest increase in assets under management over the next three years followed by the Commodity and Fixed Income areas.

Research from Lyxor reveals that the European ETP market had €241,072 million in assets under management at the end of April 2012.

 

Change in value of assets invested in European ETF and ETP products over the next three years   Percentage of fund managers interviewed
Increase of up to 10%   22.1%
Increase of between 10.1% and 30%       35.9%
Increase of between 30.1% and 50%       12.2%
Increase of between 50.1% and 75%       4.6%
Increase of between 75.1% and 100%      1.5%
Increase of over 100%   1.5%
Assets will decrease    7.6%
Don’t know      14.5%

Overall, 71% of the fund managers interviewed believe that equity based European listed ETPs will see the biggest increase in assets under management over the next three years followed by the Commodity and Fixed Income areas.

 

Do you use ETFs as part of your client portfolios? IFA Magazine will be running a comprehensive seminar in London later this year on the ETF market. To register your interest and to receive more details, please click HERE

 

 

 

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