The Europe ETF market holds 2,260 products, compared to 2,116 in the U.S. The region with the sharpest growth rate was Japan, where assets surged 60% to $276 billion. Meanwhile, U.S. assets grew 34% to a whooping $3.4 trillion.
Investment money continues to find its way into index-based vehicles like ETFs as asset managers seek out cheaper alternatives to pricey and often underperforming actively managed funds. Additionally, new ETFs are being supported by the perception that the investment vehicle is simple and provides improved diversification.
Further supporting the Europe-listed ETF growth story, the recently implemented rules in Europe could be a catalyst for increased ETF demand. Mifid II requires detailed reporting of ETF trades and will provided a clearer picture of pricign and liquidity. The lack of data previously deterred many from investing in the investment tool.
For more information on the ETF industry, visit our ETF performance reports category.