Some in the industry would go so far as to say there are too many ETFs, but another view is that the variety is a huge benefit to investors as this enables them to build very tailored and unique portfolios.
For example, tools from smart beta fixed income, to multi-factor strategic beta, to thematic and liquid alternatives are all allowing investors to build portfolios they never would have envisaged just five or 10 years ago.
In summary, the global ETF industry, and specifically the European ETF market, have a very bright future. Issues such as infrastructure and investor education are speed bumps rather than road blocks and they become more surmountable by the day.
With the increasingly creative utilisation of ETFs as well as the sheer variety now available, momentum within the European ETF industry looks set to accelerate on its already rapid pace.
Bryon Lake is a managing director at JPMorgan Asset Management
