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HANetf welcomes Bank of America’s $50 trillion forecast for the ETF market by 2030

  • Bank of America predicts ETF industry on course for $50 trillion in assets by 2030[1]
  • HANetf CEO predicts next decade will seefaster growth in European ETF assets as it catches up with the US ETF market
  • ETFs poised to become product of choice for new fund launches which provide daily liquidity
  • European market just beginning to diversify into new asset areas, including strategies such as thematics, smart beta and ultimately active management
  • The advent of HANetf’s offering means that barriers to entry for new launches have come down under an aggregated scale model

 

London: 20th December 2019: HANetf, the white label ETF specialist, welcomes and supports the Bank of America’s recent predictions regarding the growth of the ETF market worldwide and sees this as supportive of further growth in the European market in the next 10 years.

According to statistics published by Bank of America, ETFs have seen tremendous growth over the last decade, with consistent 25% annual growth. ETF assets stood at just $770 billion 10 years ago.

The Bank forecasts ETF assets under management to hit US$50 trillion by the end of the next decade, based on the current growth rate. It also predicts that innovation within the ETF market and further inroads into the fixed income space with drive additional growth.

HANetf was launched in 2018 to provide fund managers with an easy route to market for ETF products.

Hector McNeil, Co-CEO of HANetf commented:

“The last decade has seen some excellent growth numbers for ETFs but the next one is where we will see them really take off. We agree with the Bank of America’s forecasts and anticipate that the ETF is just getting started as a product wrapper in the European market. The US market has a well-established ETF market and passive ETFs have a penetration of around 40-45%; whereas Europe is still less than 10%. We therefore believe that the exponential growth will be even more impactful for Europe”

“We see a couple of major trends for the European ETF market in the next decade. The first is wider acceptance of the exchange listed product approach by fund managers and investors, which in turn will translate into much larger levels of assets under management.

The second trend is the emergence of the active ETF as an alternative to traditional routes to market for fund managers. There is still a perception that the ETF market is for the big names that have dominated the European playing field to date, but that is starting to change as barriers to entry have come down. The European market is just getting started and over the next 10 years we expect to see rapid expansion, not just in terms of pure assets, but also in choice and sophistication. Since launching HANetf two years ago we have had nearly 500 enquiries from asset managers who want to discuss using our platform to enter the ETF market. With 150 years of ETF experience and the ability to get a fund launched in 10 weeks, which makes our proposition very appealing.”

He further commented:

“Remarkably in such a small time we have issued ETFs for an established US provider, a South African mutual fund provider, a Kuwaiti asset manager and our latest client was established over a 1000 years ago which is owned by the UK government and this is just the start. We expect many more companies with great IP, brands and content to enter the ETF market using our platform”

Based in London and providing  pan-European coverage, HANetf has already supported the launch of five thematic equity ETF products in UCITS format for distribution into the European market with more in the pipeline for 2020.

HANetf delivers a hosting, listing and distribution solution for fund managers who are considering an ETF launch without the costs and time delays involved with setting up an ETF business from scratch. Its founders have deep experience of launching ETFs and ETCs (exchange traded commodities) in the European market with firms like ETF Securities and WisdomTree Europe.

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