A Year of Record Inflows for Passive ETF Providers

Additionally, ETFs are beginning to carve out a larger portion of the fixed-income space as alternatives to derivative instruments such as futures and options.

On the global stage, regulatory changes could also help drive ETF growth. For instance, New European rules, known as Mifid II, will put a spotlight on ETFs by requiring comprehensive, detailed reporting of ETF trades. BlackRock and others argued that Mifid II will set European operations on a growth path similar to the US where ETF usage has been more prevalent.

“As the impact of Mifid II rules resound across the region, we believe the European ETF industry is set for a new phase of growth,” Stephen Cohen, Head of iShares EMEA at BlackRock, said in a note.

For more information on the ETF industry, visit our current affairs category.