The exchange traded fund industry has experienced rapid growth both in the U.S. and in Europe. The European ETF market does display some inefficiencies which stems from being highly concentrated.
“Looking at assets under management, however, the European ETF market is still highly concentrated. The five top promoters account for more than 75 % of the entire industry. On a fund-by-fund basis the concentration is even greater,” Detlef Glow wrote on Reuters.
According to Lyxor, the European ETF market has hit a new high in assets under management, up 3% at the end of July, with 225 billion euros, reports Rebecca Hampson for Financial News. Fresh inflows and better performance in underlying indices plus stronger market moves has increased investor confidence over the past three months. [European Regulators Focus on Securities Lending in ETFs]
The top ten funds by assets under management account for 25.68 % of the overall total, while the largest fund in the European ETF universe, iShares DAX, accounts for 11.624 billion euros or 4.75% of the overall market, reports Glow.