Michael Latham, the managing director and head of iShares, Americas, for exchange traded fund (ETF) provider Barclays Global Investors, has big plans for the company’s iShares ETFs. In an interview with Brook Southall for Investment News, he talks about his company’s progress, competitors and ETFs.
Currently, the iShares ETFs have about $300 billion in assets for North America and their market shares continue to rise. Its U.S. ETF assets are up to 59%, which is an increase from 45% in the last couple of years. However, Latham is quick to admit that Vanguard is one of Barclays’ biggest competitors. The iShares ETFs are mainly geared toward advisers because Barclays believes most investors need an adviser. Latham says he thinks more full-service broker-dealers are the way of the future and that in 10 years, 90% of the business will go to fee based.
As for future goals, Latham says he’s confident that iShares will roll out with some actively-managed ETFs next year. Barclays also hopes to improve integrating ETFs into 401(k) plans, but he emphasizes the best way to do that is to first focus on the need for advice. Even though advisers add an extra layer of fees, he says they are well worth the money. Currently, about 7% of Barclays’ assets are in retirement plans, but that includes individual retirement account rollovers and 401(k)s.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.