Dubai: Exchange traded fund (ETF) businesses expect to grow by nearly 18 per cent per year for the next three to five years, according to an EY Global ETF Survey 2015.
The survey reveals that the growth is a result of their continuous gain in market shares from traditional active asset managers and passive mutual funds, institutional investors increasing their allocations to ETFs, and innovative products driving growth.
EY surveyed nearly 80 leading promoters, investors, market makers and service providers across the US, Europe and Asia between July and September 2015. The respondents, the company said, collectively represent issuers managing more than 85 per cent of global ETF assets. The survey revealed that almost all respondents (91 per cent) expect to achieve a cumulative annual growth rate of more than 10 per cent over the next three to five years, and 27 per cent expect annual growth exceeding 25 per cent over the same period. Respondents of the survey expect this growth to continue, with the majority believing their own businesses will grow by 25 per cent to 30 per cent per year over the next three to five years, despite a decline in Asian-wide ETF assets during the first eight months of 2015. The survey also showed that product development is moving faster than at any point in the ETF industry’s history.
