Global ETF assets under management are predicted to hit US$19.2 trillion by June 2028, marking a 13.5% compound annual growth rate from US$11.5 trillion in 2023.
This was found by PwC in its Global ETF report ‘ETFs 2028: Shaping the future’, covering key players in the US, Europe, Canada and Asia Pacific (Apac).
The US dominates the ETF market, with over 70% of global assets under management in 2023. 64% of US respondents said they expect US ETF AuM to hit at least US$13 trillion by June 2028, with 41% even more optimistic, anticipating $15 trillion or more. Europe holds 16% of global AuM and 60% of European respondents foresee European ETF AuM surpassing $3 trillion by June 2028. In APAC, 77% anticipate Apac ETF AuM exceeding $2.5 trillion by June 2028, while 51% of Canadian respondents expect Canadian ETF AuM to reach at least $700 billion by 2028.
ETF Administration Survey Report 2023
Across regions, the survey found the rising significance of retail investors seeking easily accessible and understandable market products for future growth.
Another PwC report highlighted a looming generational wealth transfer of over $68 trillion to millennials by 2030, with this demographic displaying a marked preference for ETFs.
Marie Coady, PwC Global ETF Leader, said: “Marketing through social media platforms, podcasts and apps will be important to target these millennials who prefer real-time information.”
Expectations for active ETFs are high across all regions, particularly in Canada and the US, where substantial growth has been witnessed in recent years, and a significant portion of new launches are actively managed. While Europe and Apac are more reserved in their projections for active ETF demand, they are likely to mirror the US trend.
Fixed-income ETFs attracted US$308.4 billion of investment worldwide in 2023 with a 24.4% year-on-year increase. More than eight out of ten survey respondents shared they expect significant demand for fixed-income ETFs over the next two to three years.
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More than a third of respondents shared that they plan to launch digital asset ETFs if regulators allow it in their respective regions.
The report highlighted technology’s dual role in cost reduction and margin enhancement and its ability to create new distribution channels and personalized solutions. GenAI, specifically, is accelerating digital transformation by improving decision-making, expediting tasks, and revolutionising entire processes, functions and business models.
