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Research Reports » Clearstream Oct 2017

What’s next for funds: Exchange-traded funds and fragmentation

Flexible, transparent and with low fees, exchange-traded funds (ETFs) have a broad appeal. But there are challenges involved with this kind of fund, which is why Funds Europe, in association with Clearstream, chose the subject for the second in a series of research reports, ‘What’s next for funds’, about the future of the funds industry. Among the highlights of this survey:
    •  52% of respondents think the investor category with most to gain from investing in ETFs is mass retail
    •  56% believe low fees are the most important factor attracting ETF investors
    •  68% believe the cost of investing in ETFs (such as operational costs and fees) will fall
    •  55% believe Europe’s ETF market, by being spread across many exchanges, is too fragmented
    •  60% think ETFs are not appropriate for investing in illiquid assets such as real estate

A total of 124 professionals drawn from Funds Europe’s readership, who work in various positions across the funds industry, participated in the survey that was conducted online between May 18 and July 7, 2017. For some questions, the number of responses was less than the total because of drop-outs. The occupations of the respondents were as follows:

Asset manager: 48%
Custodian or transfer agent: 9%
Wealth manager: 8%
Fund distributor: 5%
Institutional investor: 4%
Other: 26%

For the next part of the report, click here.

©2017 funds europe