Fri, Nov 28, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Innovation, Asian sales could push ETFs to surpass hedge funds assets in 2014

Monday, January 27, 2014

Komfie Manalo, Opalesque Asia:

Exchange traded funds (ETFs) could surpass the assets of hedge funds before the year ends at the earliest or in the first half of next year at the latest, according to a study released by EY, formerly Ernst & Young, several media said.

According to EY, ETFs assets under management (AuM) currently stands at $2.4tln, or some $200bn short of the estimated $2.6tln hedge fund assets. But EY estimated that ETFs could surpass hedge funds within the next 12 to 18 months to be led by growing sales in Asia.

EY’s ETF leader Lisa Kealy said, "[ETF] growth will come from innovation, from more wide-spread users of, and uses for, ETFs as they take market share from active and other passive competitors."

According to the report, the U.S. markets would grow by 15% per annum while Europe will record up to 20% surge yearly. The Asian region is predicted to post close to 30% growth per year up to 2019.

"The US market is still growing at 15%, which is an incredible rate for a more mature market," EY’s global asset management ETF lead Matt Forstenhauseler said.

Valuewalk said that EY’s survey found that investors are looking for increased investments into the ETF markets in the coming year as the industry offers more produc......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Unlucky Paulson & Co. rebrands $1.6bn Recovery Fund after 13% drop[more]

    From Businessweek.com: A maturing U.S. economic recovery is prompting Paulson & Co. to change course. The $19 billion hedge fund firm, led by billionaire John Paulson, told investors on a conference call this month that the Paulson Recovery Fund will be renamed Paulson Special Situations Fund on Jan

  2. Opalesque Exclusive: Risk management emerges as a competitive focus area for hedge funds[more]

    Bailey McCann, Opalesque New York: Risk management has always been a core component of any trading strategy, as well as a critical part of business management. However, as macreconomic weakness persists, and alpha becomes increasingly hard to generate, risk management as emerged as a more promin

  3. Opalesque Roundtable: Islamic Finance races ahead with Sukuk, the first managed account platform, and foreign demand[more]

    Komfie Manalo, Opalesque Asia: A number of developments took place within Islamic finance in the past years, including the launch of a Islamic managed account platform and the further growth of the sukuk space that saw this instrument evolve from being a type of an ABS security that was rarely

  4. CTAs , event-driven strategies lead hedge funds recovery in mid-November[more]

    Komfie Manalo, Opalesque Asia: November’s performance proves to be in sharp contrast to the previous month, with equities further consolidating their upswing last week, according to the latest Lyxor Asset Management’s Weekly Brief. CTA funds als

  5. Fund Profile - A complex hedge fund strategy works for United Technologies[more]

    From Institutionalinvestor.com: Reports that portable alpha is dead have been greatly exaggerated, as Mark Twain might have phrased it. Another Connecticut Yankee, giant United Technologies Corp., is gearing up to grow its successful, nearly decade-long portable-alpha program. The UTC strategy took