Active Fund Managers to Launch ETFs

As investors increasingly favour low-cost ETFs, it forces traditional active fund houses to figure out how to adapt to this new landscape

Karen Kwok 2 November, 2016 | 8:49AM

The global exchange-traded fund market will grow twice its current value to $6 trillion by 2020, according to financial services company Ernst & Young – and investors should expect more active fund managers to launch ETFs. The growth is supported by changing investors’ behaviour and the ongoing low-return environment.

The global ETF market was valued at $3.4 trillion in August 2016, data provided by EY showed. The European ETF market was valued at $533 billion, and is expected to grow to $1.1 trillion by the end of 2020.

“The prediction of a $6 trillion global ETF market value by 2020 does not look particularly outlandish,” said Jose Garcia Zarate, Associate Director of Passive Fund Research for Morningstar. “The increasing popularity across the world of passive as an investing philosophy bodes well for continued asset growth for the ETF market in years to come. This is proving an investor-led revolution that investors around the world actively choose to go down the low-cost route.”

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies