Why ETF industry is ripe for consolidation

Hector McNeil, an ex managing partner of ETF Securities, has predicted major consolidation in the ETF industry over the next few years.

McNeil, who recently launched Boost ETP with fellow ex-ETFS managing partner Nik Bienkowski, believes providers will either seek acquisitions to boost their market share or be forced to exit the market. “We will be very keen to look at various businesses as they come free and see whether that is something we are interested in buying or merging,” he said. “Credit Suisse was toying for a while over whether they should buy or sell, so it is interesting it is selling its ETF arm,” he added. Boost ETP is a specialist independent provider the pair hope will challenge current European pla...