Globally, ETF products hold over $2 trillion in assets under management, and almost 70% is held under iShares, SSgA and Vanguard. In Europe, iShares, Deutsche and Lyxor account for more than 60% of the market, before BlackRock’s purchase of Credit Suisse.
“In any industry that is evolving it is not unusual to see some consolidation leading to greater efficiencies for investors,” Joe Linhares, head of iShares for Europe, the Middle East and Africa, said. “Without it, fragmentation can become an issue.”
However, others point to a potential monopoly forming, especially with iShares’ “quasi-monopoly” that would not be beneficial for investors, Gordon Rose, ETF analyst at Morningstar, warned.
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.