In just over a year since listing ETFs on European markets, Vanguard has attracted $2.5 billion in inflows. Nick Blake, head of UK retail at Vanguard, attributes the growth to the company’s low-cost mantra appealing to advisors.
The slow uptake among European retail investors also has regulators worried. Steven Maijoor, chairman of the European Securities and Markets Authority, pointed to the disparate investing habits between Europe and the U.S., where retail investors make up a large portion of the ETF market.
“We are interested to understand better why retail exposure to ETFs [in Europe]appears to be relatively low,” Maijoor said in the article.
Wiedman, though, suggests that a shift to a fee-based model for financial advisors could help stimulate interest in ETFs.
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Max Chen contributed to this article.