Part of the slower pickup in ETFs across Europe may be attributed to the complex regulatory environment between country-to-country. Asset managers have been occupied with MiFID II, an overhual of EU financial-services regulations that goes into effect in January.
“We’re seeing regulatory changes change the ETF environment,” Fink said. “We do believe we’re seeing accelerated flows” in part because of MiFID II.
As more ETF providers try to capitalize on the early-adoption and greater growth potential of the European markets, ETF investors can also benefit from the further growth through a targeted strategy that covers players in the ETF space.
Specifically, the ETF Industry Exposure & Financial Services ETF (NYSEArca: TETF) is a way to play ETF providers. TETF tries to reflect the performance of the Toroso ETF Industry Index, which tracks publicly-traded companies that directly or indirectly provide services or support to ETFs, including management, servicing, trading or sales of ETFs. TETF’s portfolio includes 6.4% BlackRock, 6.0% Invesco and 0.7% Eaton Vance.
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