New research by PwC shows that 78 percent of firms see global Exchange Traded Fund (ETF) Assets under Management (AuM) currently at $2.6 trillion growing to at least $5 trillion by 2020.
PwC in the survey titled, “ETF 2020: Preparing for a new Horizon,” noted that the Exchange Traded Fund market was growing at a rapid pace. “Growing far beyond their initial function of tracking large liquid indices in developed markets, ETFs now hold over $2.6 trillion of assets globally.”
ETFs have enjoyed two decades of explosive growth. Evolving and proliferating as they attracted new users, ETFs went from a single vehicle providing exposure to large cap US equities to thousands of products representing a dizzying range of asset classes and strategies.
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As ETFs reshape their environment all over again, asset managers and intermediaries alike will want to have strategies in place to deal with the changes sweeping across the competitive landscape.
“ETFs are no longer a niche product, and their impact will continue to be felt much more widely than imagined. As such, all financial services firms should consider developing an ETF strategy,” PwC stated in the survey.
“We have surveyed asset managers, service providers and other industry participants around the world in an effort to better understand regional developments in ETFs and use their expertise as a sounding board for our own perspectives,” it noted.
The survey leverages the results of PwC global survey and insights to paint a picture of how the ETF business and landscape are likely to develop globally over the next six years.
