The exceptional growth of the ETF business is undeniable and global assets under management topping $2.2 trillion only confirm this. Is it too late for advisors to jump into the ETF market? Where will the next big growth opportunities be?
A new report, “The next generation of ETFs: Why every asset manager needs an ETF strategy,” contends that despite assets being concentrated among a handful of large ETF managers, it would be a mistake to conclude the industry is saturated or lacking opportunity.
The report, published by consulting firm PwC, also examined active versus index ETFs along with growing usage of ETFs within retirement plans, including 401(k)s.
Among U.S.-based RIAs, “ETFs still only have a 7% share of wallet among advisors combining active and passive strategies, compared to 37% using mutual funds. This indicates a substantial market opportunity even in one of the most mature market segments.”