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The European ETF Market: What can be done better?

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  • Thomadakis, Apostolos

Abstract

Growing demand in recent years for low-cost, easily tradeable, liquid and transparent investment products, resulted in the global expansion of the Exchange-Traded Fund (ETF) industry. Since 2007, global assets under management in ETFs skyrocketed from €0.8 trillion to €4.7 trillion – the market climbed 37% just in 2017. However, and despite the fact that US and European markets have each grown at a yearly average rate of approximately 18%, the latter represents only 16% of the global market. The lag in the European ETF market demonstrates that: i) it is highly fragmented with multiple listings across many exchanges, ii) Europe’s capital markets have not been successful in attracting retail investors, iii) more on-exchange ETF trading is necessary, and iv) regulation and innovation can further develop and harmonise the market to move it towards more transparency and cost-efficiency.

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  • Thomadakis, Apostolos, 2018. "The European ETF Market: What can be done better?," ECMI Papers 13604, Centre for European Policy Studies.
    • Handle: RePEc:eps:ecmiwp:13604
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    File URL: https://www.ceps.eu/system/files/AT_EuropeanETFMarket_1.pdf
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    1. Itzhak Ben-David & Francesco A. Franzoni & Rabih Moussawi, 2016. "Exchange Traded Funds (ETFs)," Swiss Finance Institute Research Paper Series 16-64, Swiss Finance Institute.
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    Cited by:

    1. Amariei, Cosmina, 2020. "Asset Allocation in Europe: Reality vs. Expectations," ECMI Papers 27304, Centre for European Policy Studies.
    2. Thomadakis, Apostolos, 2021. "2020 ECMI Statistical Package: key findings," ECMI Papers 32242, Centre for European Policy Studies.
    3. Bassiouny, Aliaa & Tooma, Eskandar, 2021. "Intraday indirect arbitrage between European index ETFs," International Review of Financial Analysis, Elsevier, vol. 75(C).
    4. Gleisner, Love & Thomadakis, Apostolos, 2018. "Recent Developments in European Capital Markets: Key findings from the 2018 ECMI Statistical Package," ECMI Papers 14015, Centre for European Policy Studies.

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