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European ETF investor survey reveals investors want more information and innovation

Wednesday, September 16, 2015
Opalesque Industry Update - ETF.com, the leading independent authority on exchange-traded funds (ETFs), together with Brown Brothers Harriman (BBH), a market leading ETF custodian and administrator, and Deutsche Asset & Wealth Management announce the results of their new Annual European ETF Investor Survey, which investigates attitudes to ETFs amongst investors across Europe.

Among other trends, the survey examines knowledge/understanding of ETFs, issues around access to and information about ETFs, areas where more product innovation is desired as well as how investors view newly launched ETFs, the importance of the index and ETF brand, where investors feel they most need support from and improvement of the ETF industry.

“It is our firm belief that as the ETF market continues to expand in Europe, the thirst for accurate research and information about ETFs will continue to grow, and the results of this year’s survey point firmly to that,” says Jim Wiandt, Founder ETF.com & President ETF.com Europe. “Particularly among financial advisers, ETF.com feels it can play an important role in satisfying this demand to the end of seeing more investors better invested.”

Andrew Craswell, Vice President of Global ETF Services at Brown Brothers Harriman says "The results confirm that over half of the European survey participants are now actively using ETFs to complement mutual funds in their portfolio strategies. This is an extraordinary development and demonstrates that ETFs are becoming increasingly popular across a broader spectrum of investors. This also proves the European ETF market is maturing, and we are starting to see a greater alignment with the more established US ETF market place. This certainly points to a significant growth opportunity for ETFs in Europe.”

Simon Klein, Head of Sales Passive Investments EMEA & Asia, Deutsche Asset & Wealth Management says "The results overwhelmingly point the desire for more product innovation together with a preference for physically replicated ETFs. We believe the ETF industry in Europe has made great strides toward meeting these investor needs but that there is still much work to do for the growing range of ETF investors.”

Key results from this year’s data:

- A large proportion of respondents (60%) only invest 10% or less of their AUM in ETFs
- 98% of respondents intend to maintain or increase their allocation of ETFs over the next 12 months with 62% of respondents planning an increase
- Lack of education and information about ETFs was cited as the #1 impediment to increasing allocation, followed by lack of cost effective access through investing platforms.
- 48% of respondents stated that they had received no calls from ETF Salespeople in the past month
- 66% of respondents intend to maintain or increase their exposure to smart beta ETFs in the next year

Visit ETF.com & the autumn issue of ETF Report UK to access the general summary of results and the ETF.com/BBH Q&A analysis.

Press release

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