Smaller Providers Shake Up The European ETF Market With $13 Billion Investments
Frankfurt
Financial services provider Deka begins offering Exchange-Traded Funds (ETFs) to savings bank advisors.
In an exciting development, Deka has taken a bold step by expanding its retail distribution for ETFs through Sparkasse advisors, starting from June 2024. Denis Friess, Head of Institutional Fund Management at Deka Investment, sheds light on this move in an interview with the Börsen-Zeitung, stating, "ETFs are an entry and complementary product for us, which is also distributed through advisors."
"Small fry" is the new term for the players in the European ETF market, with Deka joining the race with a substantial war chest of €13 billion. Although titans like iShares (BlackRock) and Goldman Sachs Asset Management have been the dominant forces, this new wave of providers is making waves.
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While iShares has been the leader with products like the £85.1B iShares Core S&P 500 UCITS ETF and the iShares Core MSCI World UCITS ETF, Goldman Sachs recently made a splash in the active equity ETF market in Europe with the Alpha Enhanced US Equity Active UCITS ETF. The European ETF market has shown tremendous growth, reaching a staggering $2.4 trillion in assets with 3,176 products from 124 providers as of March 2025. Recent developments include record inflows and Goldman Sachs’ foray into active equity ETFs.
As Deka takes the plunge into the competitive ETF market, it's going to be an exciting ride watching the smaller providers stir the waters!
- Deka is set to enter the retail distribution of ETFs through Sparkasse advisors, starting from June 2024, with an investment of €13 billion.
- Denis Friess, Head of Institutional Fund Management at Deka Investment, asserted that ETFs are an entry and complementary product for the company.
- Though iShares (BlackRock) and Goldman Sachs Asset Management have been prominent players in the European ETF market, a new wave of smaller providers is making a significant impact, with Deka being a recent entrant.
- As of March 2025, the European ETF market has reached $2.4 trillion in assets with 3,176 products from 124 providers, with recent developments including record inflows and Goldman Sachs’ foray into active equity ETFs, making it an exciting time for finance and investing businesses.
