(ETF Stream) Assets in European-listed ETFs have surpassed the $1trn barrier for the first time in a significant milestone for the industry.
According to preliminary data from ETFGI, the European ETP industry grew 4.6% in December to surpass the $1trn mark by the end of the year.
The news comes as the European ETF industry saw record inflows of $108bn last year, according to data from Bloomberg Intelligence, more than double the flows in 2018 and surpassing the previous record set in 2017.
Strong market performance combined with ongoing lowering costs has caused investors to flock to ETFs this year while the saga surrounding high-profile manager Neil Woodford has made investors think twice before betting with ‘star’ fund managers.
However, Derek Fulton, CEO of First Trust Global Portfolios, said there is still some scepticism in Europe around systematic strategies.
“The concept of the star fund manager idea is still kicking in Europe with investors happy to stick to what they know,” Fulton added.
Having said this, the rise of ETFs over the past decade has been nothing of remarkable with assets in Europe jumping from $143m in 2008 to over $1trn.