The global market for exchange-traded funds (ETFs) may grow around 20 to 30 percent next year, fuelled by Asia where the market is still maturing, a strategist at money manager BlackRock said.
Total assets under management in ETF products this year grew 19 percent to $1.23 billion by end-November, Deborah Fuhr, global head of ETF research and implementation strategy, told Reuters in an interview on December 29.
The number of ETF products jumped about 25 percent to 2,422, while the number of providers increased by 25. "Global assets under management in ETFs will probably rise by 20 to 30 percent next year The growth in the number of new products and providers will probably be similar to what we have seen this year," she said.
Fuhr, who has been following the segment since 1996, first at Morgan Stanley and now BlackRock, expects to see the biggest increase in Asia, where the market for ETFs is in its infancy.
She also expects new providers, mainly banks and wealth managers, to tap into the European market. "I am sure that we will see more providers coming to Europe. That should be European asset managers and banks in the first line, and some US providers. I would also not rule out some Asian providers, especially from India, entering the European market."