09.06.2015 - ETFs: $3 Trillion is Nice, but $6 Trillion is Better
The global exchange traded products industry recently celebrated another milestone, that being reaching $3 trillion in combined assets under management at the end of May. Goldman Sachs sees that figure doubling and doing so by 2020. Josh Brown of Reformed Broker fame posted Goldman’s ETF outlook Monday and the report includes sound reasoning for why the ETF industry’s rapid growth will continue at an accelerated clip. “We think ETFs will continue to see robust asset gathering (15% ann. over last 3 yrs), above and beyond the passive vs. active debate,” said Goldman. “Specifically, we expect ETFs to continue growing at an 12%-13% organic rate, likely doubling in AuM to +$6tn by 2020 amidst rapid growth in RIA, roll-over of 401(k) into IRAs, increasing use of auto-allocation products, regulatory push into lower-cost products, geographic expansion, and innovation.”..............................................Full Article: Source
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