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Europe ETF Industry - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 130 Pages
  • January 2022
  • Region: Europe
  • Mordor Intelligence
  • ID: 5530228

International investors looking for easy exposure to European markets may want to invest in European ETFs. Having benefited from an evolving regulatory environment and lowering barriers across individual markets, several additional factors are newly expected to drive growth over the next five years. The expansion of Robo-advice and online platforms in particular is likely to play a key role in the growing use of ETFs by European retail investors.

Structural changes in the way advice are delivered have helped to expand the use of ETFs in European markets. This momentum has been boosted further by regulations such as the Retail Distribution Review (RDR), which is causing distribution models to shift away from commissions.

The fragmented nature of European markets has a direct impact on the distribution of financial products and ETFs are no exception. Average daily volume can be surprisingly low and bid-ask spreads can be wide. The current regulations governing cross-border distribution aim at harmonizing and simplifying the registration process. However, some significant national differences remain.

Key Market Trends

ETFs in Europe Region

European ETFs enjoyed a 27% growth in AuM for five years till 2015 and a good growth rate thereafter. The market turmoil caused by the coronavirus pandemic hit the European ETF industry in March 2020 with record outflows. The combination of outflows and the negative performance of underlying markets led to a decrease in assets under management from EUR 839.9 bn as of February 28, 2020, to EUR 719.2 bn at the end of March.

ETF segmentation in Europe

Despite the market crisis, it was not surprising equity funds (EUR 465.1 bn) held the majority of assets, followed by bond funds (EUR 219.9 bn), commodity products (EUR 21.5 bn), alternative UCITS products (EUR5.8 bn), money market funds (EUR 5.2 bn), mixed-assets funds (EUR 1.5 bn), and “other” funds (EUR0.2 bn).

Competitive Landscape

The report includes an overview of ETF operating companies across the region. We wish to present detailed profiling of a few major companies which cover product offerings, regulations governing them, their headquarters, and financial performance. Currently, some of the major players dominating the market are listed below.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
4.1 Market Overview
4.2 Insights on ETFs returns, distribution channels
4.3 Technology Adoption of the Business Landscape
4.4 Global ETF Investors - Their Presence in Europe
4.5 Industry Policies And Government Regulations
4.6 Market Drivers
4.7 Market Restraints
4.8 Value Chain / Supply Chain Analysis
4.9 Porters 5 Force Analysis
4.9.1 Threat of New Entrants
4.9.2 Bargaining Power of Buyers/Consumers
4.9.3 Bargaining Power of Suppliers
4.9.4 Threat of Substitute Products
4.9.5 Intensity of Competitive Rivalry
4.10 Impact of COVID-19 on the Market
5.1 Types of ETFs
5.1.1 Fixed Income ETFs
5.1.2 Equity ETFs
5.1.3 Commodity ETFs
5.1.4 Alternatives ETFs
5.1.5 Money Market ETFs
5.1.6 Mixed Assets ETFs
5.1.7 Others
6.1 Market Competition Overview (Market Concentration And M&A Deals)
6.2 Company Profiles
6.2.1 iShares - BlackRock
6.2.2 Xtracters
6.2.3 Lyxor
6.2.4 UBS
6.2.5 Amundi AM
6.2.6 Vanguard
6.2.7 Invesco
6.2.8 State Street
6.2.9 WisdomTree
6.2.10 BNP Paribas*