FYI: Following Lyxor Dauphine Research Academy’s recent study explaining how more active managers will adopt passive investments, Moody’s Investor Service has announced its expectations for Europe’s ETF market.
Lyxor Dauphine concluded its report by saying investors will soon stop thinking “active or passive” but rather “active and passive”. Moody’s latest report supports this theory, predicting passive funds will comprise 25 per cent of the fund industry’s total AUM within Europe by 2025. ETFs are a key driver in this development, growing in demand by both institutional and retail investors. This could result in the European market – where ETFs comprise 6.2 per cent of fund AUM – finally competing with the US where ETFs comprise 18 per cent of its fund industry’s AUM at years end 2017.
Regards,
Ted
http://www.etfstream.com/news/5236_european-etf-market-to-compete-with-us-by-2025