European exchange-traded funds (ETFs) are set to grow by 15-20%, according to Deutsche Asset and Wealth Management (Deutsche AWM).
With €357.3 billion in ETF assets under management (AUM), ETFs currently account for 3.3% of total fund volumes in Europe.
Simon Klein, head of exchange-traded product distribution and institutional mandates for Europe, Middle East and Africa (EMEA) and Asia at Deutsche AWM, anticipates the growth will come from additional services ETF houses can provide clients and strong price competition.
“Genuine innovation in the ETF industry means providing access to new markets that were not previously open for investment, and facilitating previously unavailable exposures,” says Klein.
He adds that additional services such as providing model portfolios, the delivery of key data, statistics and analysis of historical performance can sway professional investors when choosing between providers of identical or similar products.
Deutsche AWM is now Europe’s second largest provider of physical ETFs, with AUM in direct replication ETFs of €17.7 billion. In total, Deutsche AWM manages ETF assets of €44.88 billion.
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