Furthermore, of the 1,727 ETFs trading on the market in Europe, 47 have assets in management over 1 billion euros. Together, these funds make up about 50% of ETF assets in the European market, and have been profitable for the providers. [Eurozone Quantitative Easing Plans Boost Stock ETFs]
The industry works similar to the U.S. , where smaller providers may struggle to stay afloat, incurring legal costs, listing and marketing costs, and can ultimately not remain profitable if there is no growth.
According to Lipper data, there are about 294 ETFs in the European market that are in danger of closure, unable to garner at least one hundred million euros over a three-year period. [Spain’s Financial Distress Drags on Stock ETFs]
Tisha Guerrero contributed to this article.