Only a handful of money management firms dominate the exchange traded fund industry in Europe. The business is consolidating further, leaving some observers worried about the diminishing competition.
BlackRock, the firm behind the iShares ETF brand, is expected to finalize its acquisition of Credit Suisse’s ETF business in June, reports Lee Davidson for Morningstar. [BlackRock to Acquire Credit Suisse ETF Business: Report]
Consequently, iShares is expected to make up 43% of European ETP assets, followed by Deutsche Bank’s db X-trackers with 13% of the market and Lyxor at 11%.
The Herfindahl-Hirschman Index, which is commonly used to measure industry competition, is currently at 0.22, signaling a moderate concentration, but could rise to 0.27, a high degree of concentration, once BlackRock acquires Credit Suisse’s ETF business.