The European Fund and Asset Management Association (Efama) has released a new issue of its Market Insights series, focusing on the European ETF market.
Titled “Ucits ETFs: A growing market in volatile times,” the report examines the main trends in the ETF market and the potential benefits of an EU consolidated tape.
According to the report, the ETF market in Europe has reached a total asset value of €1.4 trillion as of the end of 2022, indicating substantial growth in the ETP sector over the last five years.
The publication highlights the continuous innovation in the ETF market, providing retail and institutional investors access to various non-equity asset classes and innovative strategies like factor investing and active strategies.
The European Ucits ETF market has shown consistent growth in sustainable investing, with steady inflows into Article 8 and Article 9 ETFs since the Sustainable Finance Disclosure Regulation (SFDR) came into effect in March 2021.
Efama’s report also discusses the resilience of ETFs during recent market volatility, challenging previous assumptions about their stability. It notes that ETFs have continued to trade effectively, contributing to price discovery in times of market stress.
The organisation emphasises the significant potential for European Ucits ETFs to attract more investors. Implementing a full, consolidated tape for these products in Europe, Efama suggests, would greatly enhance the international attractiveness of the “Ucits ETF” label.
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