What are the biggest risks emerging from the rapid growth of ETFs?

150 surveyed

Liquidity risks and operational errors are the two biggest risks for asset managers emerging from the boom in ETFs, according to the Temenos Multifonds Every Funds Survey.

The report, which surveyed 150 asset managers, custodians, third-party administrators and professional service providers, found 34% of respondents said ETF liquidity was their key concern while 20% said operational errors. Furthermore, the research found respondents who planned to offer ETFs said operational technology and systems, regulatory compliance, external connections to exchanges and authorised participants were among their biggest challenges. As a result, 25% of respondents said they were not keeping pace with the rapid ETF growth and complexity. The global ETF and ETP ind...