Why European ETF market is not at risk of consolidation but is reaching maturity

Funds with AUM of €10m at 'high risk' of liquidation

Detlef Glow, head of EMEA research at Thomson Reuters, has argued there are no signs of consolidation in the European ETF market, while any "clean-up" of product ranges is a sign of the maturity of the industry.

He said strong net sales of ETF products have fuelled the launch of new strategies, while the closure of product ranges receiving the least inflows is a positive for the market. "The closure of these…ETFs would in my opinion still not mark a consolidation, since the ETF promoters may launch a similar number of products over the same or a slightly extended timeframe," he said. "Another fact that speaks against a consolidation in the European ETF industry in the near future is its steady growth in assets under management (AUM), mainly driven by net new sales." AUM chasing is leading ...