Nearly all asset managers will be offering either active or passive ETFs within five years, predicts EY. A new global survey by EY has laid out the dominance of passive investment strategies – and ETFs in particular. The research, EY’s fifth annual global study of ETFs, interviewed 70 product providers, market makers and services providers who manage 85 per cent of global ETF assets.
EY noted the staggering growth of ETFs, which totalled just US$417 billion in 2005 and reached US$4.4 trillion by 30 September 2017 – a cumulative average growth rate (CAGR) of around 21 per cent. Assuming a slightly more conservative growth rate (a CAGR of approximately 18 per cent), ETF assets have the potential to hit US$7.6 trillion within three years, the report said. Most importantly for fund managers, EY predicted that within five years “almost all” asset managers will offer passive or active ETFs.
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