ETF industry set to double assets under management by 2020: EY survey

Singapore

AFTER a decade of growth averaging 21.5 per cent per year, the exchange traded fund (ETF) market is poised to almost double its assets under management (AUM) from US$3.4 trillion in August 2016 to US$6 trillion by 2020, but many challenges to continued expansion lie ahead, mainly in product development, market entry and digital disruption.

This was the finding of EY's Global ETF Survey 2016, "Integrated Innovation - the key to sustainable growth". In the area of product development, for example, EY said that although new products are important, 64 per cent of providers expect new products to become less successful in the future.