Smaller Providers Rule the European ETF Market with a €13 Billion Stronghold
Frankfurt
Traditional ETF provider Deka expands its reach by offering ETFs via savings bank advisors.
Stepping into the retail distribution game for ETFs, Deka has partnered with Sparkassen advisors, marking their active distribution of ETFs starting from June 2024, as Denis Friess, head of institutional fund management at Deka Investment, explains to the Börsen-Zeitung. "ETFs are an entry and complementary product for us that is also distributed through advisors," Friess notes.
"A jumble of letters forming little sense"
While large-scale ETF providers in Europe dominate the European ETF market with assets approximately €13 billion or more; it's crucial to consider the broader spectrum of noteworthy ETF providers. Though exact asset figures for each provider may not be outlined for every company, key players include the likes of:
- BlackRock (iShares): A global heavyweight in ETF provision and a significant European force, BlackRock, through its iShares platform, manages various funds with significant assets like the iShares Core S&P 500 UCITS ETF [1][4].
- Amundi: Amassing significance following the acquisition of Lyxor ETF from Societe Generale, Amundi now stands as the second-largest ETF provider in Europe [5].
- Vanguard: Renowned for its low-cost index funds, Vanguard offers a range of ETFs in Europe and plays a considerable role in the market.
- State Street (SPDR): State Street features a variety of ETFs through its SPDR brand and ranks among the major providers in the European market.
- Invesco (Source): Invesco, via its Source ETFs, also holds notable standing in the European ETF market.
As for a specific €13 billion threshold, it mainly pertains to identifying major providers rather than individual funds attaining that asset level. However, prominent funds, such as the iShares Core MSCI EM IMI and the iShares Core S&P 500 UCITS ETF, possess assets in the billions, contributing to the overall dominance of their respective providers [1][4].
Additionally, Goldman Sachs Asset Management recently ventured into the active equity ETF market in Europe, adding an extra layer of competition [2].
- Deka, partnering with Sparkassen advisors, plans to actively distribute ETFs starting from June 2024, aiming to make them an entry and complementary product for business.
- BlackRock (iShares) is a global heavyweight in ETF provision and a significant European force, managing various funds like the iShares Core S&P 500 UCITS ETF.
- Amundi, through the acquisition of Lyxor ETF, stands as the second-largest ETF provider in Europe.
- In the European ETF market, providers with assets approximately €13 billion or more dominantly rule, but it's essential to also consider other noteworthy ETF providers like Vanguard, State Street (SPDR), and Invesco.
