Nizam Hamid, an independent ETF consultant, suggests that the outflows could be the Swiss investors’ response as a way to diversity through providers. [Is the European ETF Industry Too Concentrated?]
“As people expect the deal to complete, they might be looking at total exposure in terms of issuer risk to iShares and Credit Suisse on a combined basis,” Hamid said in the article. “People who are Swiss-domiciled may be taking the stance that they need to diversify out a bit and look to other providers.”
Fuhr also adds that investors could be moving assets around “to maintain a level of diversity and not have all of their assets with one provider.”
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.