This playbook will help you understand the dynamics of the European ETF market and the important considerations you should consider when establishing a European ETF
With over $1 trillion in assets, Europe is the world’s second largest Exchange-Traded Fund (ETF) market. However, ETFs represent only 6% of the total European fund market, compared to 20% in the US. The relatively untapped potential of the European ETF market makes it attractive to existing ETF providers looking to expand their global footprint and new entrants trying to avoid the stiff competition in the US market.
Launching an ETF in Europe comes with unique nuances that can be challenging for even the most seasoned ETF manager. With over 20 exchanges and clearinghouses the market is extremely fragmented, compared to the straightforward nature of the US market. Further complicating things is the fact that approximately 70% of European ETF trading is done over-the-counter. All of this means that ETF managers have additional liquidity and settlement timing considerations to factor into their European models.
This playbook will help you understand the dynamics of the European ETF market and the important considerations you should consider when establishing a European ETF.