ETFs
The best ETFs – ETF Express
This week brought further good news for our growing sector in Europe, with SIX Swiss Exchange reporting a record April for ETF volumes and Fiona Nicolson speaking to Tim West, Partner and UK wealth and asset manager, head of alternative investments at EY UK, about their study found that the market is expected to grow by 15 percent per year over the next five years, reaching more than 4 .5 trillion dollars by 2030.
Reflecting on the rise of active funds, the study reports that the active ETF market “began to accelerate in 2020 and has grown 250% since then.” Nicolson writes that the study also found that the market ended 2023 with $700 billion in assets under management and now represents more than 6% of the global ETF market. US providers are said to have driven growth and the report notes that many US managers are currently viewing Europe as a possible growth opportunity.
The announcement of the European launch of the successful Cash Cows series from US ETF issuer Pacer ETF is further proof of this. The products aim to generate capital appreciation by investing in companies with high free cash flow yields. The Cash Cows Series has seen extraordinary growth in the United States, where the funds hold over $35 billion in assets following a year of remarkable performance and 118.2% asset growth in 2023.
This growth was largely driven by the series’ notable ETF, COWZ, which grew from $12.5 billion to $20 billion in 2023. The success of these strategies catapulted Pacer’s total assets to more than of $43 billion after starting in 2023 with just over $19 billion.
US interest in Europe has also been demonstrated by the latest acquisition of European ETF issuer Tabula Investment Management by Janus Henderson, with the company writing that it hopes the partnership with Tabula will allow them to respond at the request of clients globally for their investment strategies to include a UCITS. The wrapper ETF, which is the most common ETF structure outside the United States. Janus Henderson writes that it is looking to leverage its global distribution platform and strengthen its partnership with its UK and European clientele, who are increasingly turning to active ETFs, and reach key growth markets Latin America, Middle East and APAC.
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Last but not least, we are very excited to introduce our latest podcast in the Off the Record series, presented in partnership with TrussEdge, titled ETF Distribution – the US and European perspective with Yorick Naeff of Bux Group representing the European perspective and Nicholas Codola of Brinker Capital Investments representing the United States. Listen to this fascinating discussion here.
Beverly Chandler, editor-in-chief