ETF assets could reach $7 trillion by the end of 2021. The new report “ETFs: A roadmap to growth” published by PwC reveals that ETF providers will grow rapidly through entering new markets, expanding distribution channels and entering new asset classes. PwC comes to this conclusion by surveying 60 asset management firms and service providers representing more than 80% of global ETF assets under management. Thereby, respondents expect the North American, European and the Asian ETF market continue to grow heavily over the next five years with annual growth rates of 23 percent, 28 percent and 22 percent respectively.
To achieve high growth rates, participants in all three regions see new distribution channels as an growth accelerator. Especially on the European market, better investors education is a driving force behind ETF adoption, similar to lower distribution costs.
However, asset managers face difficulties in growing. 47 percent see regulation as an obstacle for growth. 42 percent state that distribution channels might lack efficiency and 23 percent see extreme market events affecting ETFs negatively as growth hindering.