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.