The global exchange traded fund industry is enjoying a boom in growth, especially in Europe where listed exchange traded products hit a record last year, reflecting the rising popularity of index-based strategies outside the dominant U.S. market.
According to ETFGI, Europe-listed ETF and product assets hit $802 billion last year, reports Jennifer Thompson for the Financial Times.
While Europe’s ETF industry only makes up a slice of the $4.8 trillion global market, Europe’s ETF market is one of the fastest-growing regions, expanding 40% year-over-year, the strongest rate since 2009. In contrast the global growth rate for the investment was 36%.
“It is part of a broader shift towards indexing,” Stephen Cohen, head of BlackRock’s iShares ETF business in Europe, the Middle East and Africa, said. “We are just starting the journey the US has seen over the last five years or so.”