Global ETF assets under management to exceed $7 trillion
A new report by PwC, "ETFs: A roadmap to growth" predicts the market will achieve further significant growth through entering new markets, expanding distribution channels and asset classes.
Many ETF providers are expected to expand their global footprint and offer ETF products across borders to compete outside their domestic markets. PwC believes that, to be successful, firms will need to develop an understanding of local and global tax laws and regulations.
The North American ETF market is expected to grow to $5.9 trillion by 2021 (a 23% cumulative annual growth).
The European market is expected to grow 27% annually – reaching $1.6 trillion AUM by 2021.
Asian firms expect ETF AUM to reach $560billion by 2021 – an 18% annual growth rate over five years.
Advances in technology and data analytics are expected to be significant contributors to the growth of ETF markets by encouraging new product creation and evolution in distribution channels.
Digital technology and "big data" will continue to enable successful firms to improve decision making processes, streamline costs and transform investor relationships. ■