European ETF growth has outpaced UCITS growth by more than double over the past decade, according to a new report from PwC Luxembourg.
In the group's annual European ETF Listing and Distribution research, which shows the growth of the ETF market, EU-domiciled ETFs have grown at a compound annual growth rate of 18.7%, compared to just 9% for EU-domiciled UCITS between 2012 and June 2022.
However, the assets under management for the 1,806 ETFs covered has fallen by 10% to €1.2bn due to outflows and negative performance during the recent market volatility caused by increasing inflation and interest rates.
Global fixed income ETFs see €58.8bn inflows in July and August
Meanwhile, nearly 26% of ETFs in the report are ESG ETFs, classified as Article 8 or Article 9 products. Furthermore, 214 out of 421 EU-domiciled ETFs listed during the past 12 months on top European stock exchanges are ESG ETFs.
BlackRock remains the first cross-border management company in terms of number of distribution countries, with 35 distribution countries as of June 2022. The acquisition of Lyxor by Amundi means the asset manager is now the second largest (joint with Fidelity Investments) with 23 distribution countries.
Robert Glover, partner, global fund distribution at PwC Luxembourg, said: "This year's annual ETF poster reveals the continuing push of the largest ETF providers into some of the major markets, where they have previously not distributed. With these managers typically offering a very broad range of products, we have seen a sizeable number of new registrations in these markets."
