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|January 24, 2024
|08:30am - 11:00am GMT
|Euronext Dublin, The Exchange Building, Foster Place, D02 E796, Dublin
We will cover:
Whitepaper case study: What are the barriers to entry in European ETFs?
Exchange Traded Funds (ETFs) have been one of the most revolutionary and disruptive investment propositions of our generation. Since their launch in Europe in 2000, ETFs have seen assets grow to -$1 Trillion [www.etfgi.com] and an increasing number of asset classes, exposures and strategies are now available to investors in the simple and cost-efficient ETF format.
ETFs are 'democratic' products - both retail and institutional investors trade the same product in the same way with the same availability of information. The unique structure of ETFs (which connects the investor directly to the underlying asset class through the "create/redeem" mechanism) means that an ETF can absorb both very small and very large trades without impacting the market. A boon for investors, ETFs have levelled the playing field and enabled investors to reach previously inaccessible themes and asset classes.
Though ETFs may have democratised the investment landscape, the European ETF industry itself is trending towards oligopoly (control by the few). A vast concentration of assets in the largest European ETF providers, coupled with structural impediments and opaque influence networks are inhibiting innovation, raising barriers to entry and reducing consumer choice. In order for the European ETF industry to reach its full potential, the barriers to entry and the impediments to success must be addressed.