The U.S. exchange traded fund business could more than double in the next five years to over $3.5 trillion, according to BlackRock’s iShares.
U.S.-listed ETF assets currently stand at about $1.5 trillion.
“Growth in the U.S. is expected to be primarily driven by increased ETF usage by existing and new investor segments, ETFs as core exposures and a widening investor base for fixed income ETFs,” according to BlackRock (NYSE: BLK).
These are still the “early days” of ETF adoption, said Mark Wiedman, the Global Head of iShares.
“Even in the most mature market, the U.S., there is an incredibly bright future,” he added. “Our industry has so much exciting work yet to do with clients – in placing ETFs at the core of portfolios, deploying ETFs in undiscovered ways, and expanding ETF technology into whole new swathes of the capital markets.”
According to iShares, growth in the U.S. ETF market will be primarily driven by six key trends: