The Evolving ETF Ecosystem and Recent Drivers of Growth

The exchange traded fund universe has quickly expanded, with around 2,000 U.S-listed products trading on the market. Driving the current growth spurt, a number of factors like the rise of ESG investments, growing millennial investor group and expanding advisor base have helped bring the ETF industry to where it is today.

Shaun Wurzbach, Global Head of Financial Advisor Channel Management at S&P Dow Jones Indices, spoke with Tom Lydon, Editor and Publisher of ETF Trends, to talk about the evolving ETF ecosystem, explore where advisor interest is focused, and where index and ETF innovation best meet advisor needs.

Wurzbach pointed out that financial advisors have been a huge supporting factor in the rapid growth of ETF assets.

“We look at everything going on in the world today – especially with technology, innovation, transparency; All of this comes down to the advisor level,” Lydon said. “Your average client has more information.”

Given the ease of access to digital information, investors are able to better judge the various investments, and more are quickly finding out that the low-cost, easy-to-use ETF investment vehicle is the right choice.