The Future of ETFs in the UK and Europe

What does the future hold for ETFs in the UK and Europe given their establishment in the US?

Hortense Bioy, CFA 2 December, 2010 | 9:15AM
Facebook Twitter LinkedIn

It wasn’t long ago, last April to be precise, that exchange-traded funds (ETFs) celebrated their tenth anniversary in Europe. And over the last decade, they have enjoyed incredible growth. There are today 1,352 ETFs listed in 18 European countries, outpacing the 1,075 listed in the United States, according to Morningstar data.

In recent years, the European ETF landscape has also dramatically changed with the emergence of new players--there are currently 32 providers--and the proliferation of a slew of innovative and sometimes rather complex products. However, in terms of assets and trading volume, Europe still has a long way to go to catch up with its American counterpart. The EUR 216 billion European ETF market represents only a third of the size of the US ETF market, and daily on-exchange turnover is 20 times lower. So the question that comes to mind is: What does the future hold for ETFs in the UK and Europe, given their establishment in the US?

Plenty of Room to Grow
Industry participants all agree that the growth potential in Europe remains tremendous given the many advantages that ETFs offer over traditional actively-managed mutual funds, including low costs, intra-day liquidity and access to new asset classes.

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.

Facebook Twitter LinkedIn

About Author

Hortense Bioy, CFA

Hortense Bioy, CFA  is global head of sustainability research at Morningstar

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 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies       Modern Slavery Statement