The accelerating growth rate of the smart-beta ETP sector is set to place more pressure on fees, as providers look to develop streams of "increasingly complex" multi-factor and differentiated products for investors.
New product launches in the strategic-beta ETP space have risen to record levels this year, with 1,123 vehicles now available globally and collective assets under management reaching some $550.5bn, according to Morningstar's latest report on this area (see table, below). Entitled A Global Guide to Strategic-Beta Exchange-Traded Products, the report found the number of strategic-beta ETPs listed globally had risen by 23% as of June 2016, in comparison to the same period last year. While much of this growth was largely the result of a record number of launches in the US, it was also dr...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
