Coming Alpha study: needs more ETFs to the market? The ETF business began almost ten years ago in Europe. Since then, the popularity of exchange-traded index funds in Germany increases continuously. Both the product number and assets under management showed an enormous growth. There are now 14 provider with over 500 ETFs on the market. The variety is overwhelming, because almost every index will be used for new products. There are also new product forms. From this very dynamic development is a controversial discussion on the required number and type of additional ETFs adult. The demand for these products and the demands placed on the variety of products is already covered and when the market reaches a saturation? “, asks Hans-Jurgen Dannheisig, Managing Director of advent alpha.
Answers to these and more questions the market are coming Alpha in the current study how many ETFs needs? “, which was supported by the Mercurius commercial bank.” To do this, market participants were institutional in the fields of Asset management and wholesale specifically asked. The results make it especially clear that the demand for new products is extremely low: only about 20 percent of the respondents see here another potential. This varies however depending on the asset class, particularly real estate and money market play a subordinate role. A clear tendency to the market saturation in terms of product diversity General however should be noted. An important aspect is that the abundance of products and providers increases the danger, that market transparency is lost.
For new entrants, the market seems still limited to accommodate impressive 91.4 per cent of the respondents see little or no additional need for more issuers. Those who see the need for more ETFs, consider institutional investors as the largest target group for new products. For institutional investors, there are now ETFs that allow cost-efficient global allocation in the asset classes of stocks, bonds and gold/commodities. You can also see the implementation due to its transparency by absolute return strategies improve. “, commercial bank notes Irene Frank of the Mercurius. An analysis and interpretation of results provides the short study entitled How many ETFs takes the market? “.