Another ETF report, this time from Oliver Wyman predicting more great things for the ETF market in the years ahead. But what if they are all wrong?

What if rather than grow by 50% or a 100% or whatever the predictions are, suppose all the stars aligned and the ETF market exploded and grew 10x or 20x. What would happen then?

Would the mutual fund managers around the word as we know them have time to pivot or would it be too late and most get wiped out? Would white label providers grow in size to become systematic risk entities in the eyes of regulators. Would firms like BlackRock and Vanguard grow so large that they would be forced to break up.

What about skillsets? Would individuals in specialised seats like capital markets get to command salaries of $1m+. How would firms repurpose their sales team to meet the demand?

A lot of dynamics at play, but what if it did happen.

 

Fund Launches and Updates

 

EMEA

 

Galaxy Digital a crypto financial-services firm is teaming up with asset manager DWS to develop exchange-traded products for listing in Europe. The ETPs will give European investors access to digital-asset investment through traditional brokerage accounts. coindesk

 

Soon to launch ETF provider CIRCA500 announced plans to take its ETFs to “Europe and beyond” as well as launch fixed-income and multi-theme ETFs. etfstream

 

Deutsche Boerse said it plans to merge its index provider Qontigo and its ESG data provider International Shareholder Services (ISS) to create a leading ESG, data, index and analytics provider. deutsche-boerse.com

 

Invesco has launched a new actively managed fixed income ETF providing exposure to European government debt while factoring in ESG criteria and maximising exposure to green bonds.

The Invesco EUR Government and Related Green Transition UCITS ETF (EVGA GY) has been listed on Deutsche Börse Xetra in euros. etfstrategy

 

Legal & General Investment Management (LGIM) has partnered with Italian distributor Widiba Bank in a bid to push its thematic ETF range in the region. etfstrategy

 

AMERICAS

 

Cathie Wood’s ARK Investment Management and Swiss fund issuer 21Shares are again making their case to issue a spot bitcoin exchange-traded fund, with their third attempt focusing on how their product would be safer for investors after last year’s crypto debacles. etf.com

 

Columbia Threadneedle Investments launches Columbia Research Enhanced Real Estate ETF (CRED).

CRED, which tracks a custom, proprietary index, is designed to outperform the FTSE Nareit All Equity REITs Index1 through research-driven security selection and modified market cap weighting that emphasizes income and geographic opportunity. yahoo.com

 

Allianz Investment Management has added two new ETFs to its suite of Buffered Exchange Traded Funds: the AllianzIM U.S. Large Cap Buffer10 May ETF (NYSE Arca: MAYT) and the AllianzIM U.S. Large Cap Buffer20 May ETF (NYSE Arca: MAYW). etftrends.com

 

ASIA-PACIFIC

 

Fubon Fund Management has launched a new ETF in Hong Kong providing exposure to Asian companies that are aligned with the theme of energy storage technology.

The Fubon ICE FactSet Asia Battery and Energy Storage Technology Index ETF (3405 HK) has been listed on the Stock Exchange of Hong Kong in Hong Kong dollars. etfstrategy

 

Hong Kong’s Securities and Futures Commission is set to issue the city’s long-awaited cryptocurrency exchange licensing framework next month. The framework will regulate the digital assets sector and cover licensing of virtual asset exchanges and service providers.

The regulation will also address issues such as legal ownership, rights enforcement, liquidity, custody and validation. ignites asia

 

Flows

 

Rowe Price hits $1 Billion in U.S. ETF assets, reaching this milestone less than three years after launching its first active ETFs. etftrends

JPMorgan overthrows JPMorgan for crown of largest actively managed ETF. A $101 million inflow on Monday boosted assets in the JPMorgan Equity Premium Income ETF (ticker JEPI) to $24.7 billion.

That influx finally vaulted JEPI past the $24.6 billion JPMorgan Ultra-Short Income ETF (JPST), which previously held the crown of biggest active ETF. yahoofinance

2023 1Q saw strong inflows for ETPs in Europe across all asset classes totalling €40 billion, half of the inflows for all of last year 2022. Fixed income made up 40% of flows while making up only 30% of AuM even though short duration saw large outflows, according to Bloomberg.

 

 

 

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Get to hear their personal story and be inspired HERE.

Noteworthy

 

Vanguard UK retail platform hits 500,000 users in less than six years amid low-cost passive boom. The platform has built up a considerable following among young investors, with 34% of the platform’s clients being aged 30 or younger. etfstream

A new report from consultant Oliver Wyman predicts big things for the future of ETFs.

“We believe the ETF landscape is just embarking into a next stage of growth, this time fuelled by the rise active ETFs. By 2027, ETFs will account for 24% of total fund assets, up from 17% today”.

“We expect a significant part of this growth to come from active ETFs, creating a revenue opportunity for the industry that asset managers cannot ignore, irrespective if they are active in the ETF space today or not”. oliver wyman

Additional reads

 

Detlef Glow at Refinitive looks into his crystal ball where he predicts the future of the European ETF market is a boom in retail investing and further growth in active ETFs. eftstream.com

 

From Behind the Desk

 

Coming soon a new short form video series called FindmyFund where we look under the hood of recent product launches and funds of interest.

Watch this space