EXCHANGE TRADED FUNDS IN EUROPE – A MARKET OVERVIEW (ALL DATA AS OF SEPTEMBER, 31 2013)
ASSETS UNDER MANAGEMENT
Assets Under Management in €billion (10/2005 – 09/2013) 300 280 Equity
260 240 220 200 180 160 140 120 100 80 60 40 20 0
Source: Lipper
Bond
Real Estate
Other
Commodities
Money Market
ETFs - Assets Under Management (09/2012 – 09/2013) Equity
300
250
200
150
100
50
0
Source: Lipper
Bond
Real Estate
Other
Commodities
Money Market
Assets Under Management Assets under management grew by 32.30 billion euro or 11.43% over the last twelve month (30.09.2012 – 30.09.2013) up to 282.55 billion euro.
In the first nine month of 2013 the assets under management grew by 8.12% or 21.23 billion euro.
Source: Lipper
Largest ETFs by Assets Under Management (30/06/13)
iShares DAX® (DE) iShares S&P 500 UCITS ETF (Inc) SPDR Dow Jones Industrial Average ETF Trust db x-trackers DAX UCITS ETF iShares FTSE 100 UCITS ETF (Inc) iShares MSCI World UCITS ETF (Inc) iShares EURO STOXX 50 UCITS ETF (Inc) Lyxor ETF Euro Stoxx 50 D-EUR iShares MSCI Emerging Markets UCITS ETF (Inc)
Source: Lipper
1 ISIN Code DE0005933931 IE0031442068 US78467X1090 LU0274211480 IE0005042456 IE00B0M62Q58 IE0008471009 FR0007054358 IE00B0M63177
Lipper Global Equity Germany Equity US Equity US Equity Germany Equity UK Equity Global Equity EuroZone Equity EuroZone Equity Emerging Mkts Global
TNA Value (Euro Millions) 13,950.70 10,316.98 9,669.20 6,947.46 4,463.87 4,331.13 4,288.47 4,025.73 3,975.78
Summary Assets Under Management The European ETF market is highly concentrated Only 45 of the 1810 ETFs hold assets above 1 billion EUR 32 equity funds 11 bond funds 2 commodity (gold) funds
Source: Lipper
Summary Assets Under Management The largest ETF (iShares DAX) holds 5.24% of overall AuM
Top 10 ETFs account for 23.75% of overall AuM
Top 45 ETFs account for 44.59% of overall AuM
Source: Lipper
MARKET STRUCTURE
ETFs in Europe by Fund Domiciles (30.09.2013) O the r
Total
Bond
Equity
Commodities
Real Estate
Money Marke t
Ge rmany
115
29
79
1
3
2
1
France
374
48
266
8
8
2
42
Ire land
562
136
371
22
11
1
21
Luxembourg
605
94
369
30
10
17
85
O ther #
154
17
45
74
5
-
13
1810
324
1130
135
37
22
162
Other 9%
Germany 6%
France 21%
Luxembourg 33%
Source: Lipper
Ireland 31%
ETFs in Europe – by Fund Type (30.09.2013) 1316
1400
1200
1000
800
494
600
400
200
0
Primaries Non-Primaries
Source: Lipper
Market Share per Asset Type 30.09.2013 by Number of Funds
by Assets under Management
Money Market 1% Commodities Real Estate 7% Other 2% 9%
Bond 18%
Bond 18%
Equity 62%
Source: Lipper
Real Estate 1% Other 3% Money Market 2% Commodities 11%
Equity 65%
Summary Market Structure Luxembourg and Ireland are the dominant domiciles for ETFs followed by France. Opposite to other UCITS products, the number of convenience share classes is low in the ETF segment. Physical replication is the preferred replication method. The product mix by AuM follows the number of funds (exception „other“ funds). Source: Lipper
COMPARISON OF TOTAL EXPENSE RATIOS
ETFs in Europe – by Fund Type TERs of Bond ETFs (in %) High
Average
Low
0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2013
Source: Lipper
2012
2011
ETFs in Europe – by Fund Type TERs of Equity ETFs (in %) High
Average
Low
1.4 1.2 1 0.8 0.6 0.4 0.2 0 2013
Source: Lipper
2012
2011
ETFs in Europe – by Fund Type TERs of Commodity Based ETFs (in %) High
Average
Low
1.00 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2013
Source: Lipper
2012
2011
ETFs in Europe – by Fund Type TERs of Real Estate Linked Equity ETFs (in %) High
Average
Low
1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2013
Source: Lipper
2012
2011
ETF FUND FLOWS Q1-Q3/2013
ETFs in Europe – History of Net Flows (in €m) 60,000.00
55,000.00
50,000.00
45,000.00
40,000.00
35,000.00
30,000.00
25,000.00
20,000.00
15,000.00
10,000.00
5,000.00
2002
Source: Lipper
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
ETFs in Europe – Net Flows 2013 (in €m) 4,000.00
3,500.00
3,000.00
2,500.00
2,000.00
1,500.00
1,000.00
500.00
-
-500.00
-1,000.00
Source: Lipper
ETFs in Europe – Monthly Net Flows 2013 (in €m) 5,000.00 Other
Money Market Enhanced
Money Market
Mixed Assets
Hedge
Equity
Commodity
Bond
4,000.00
3,000.00
2,000.00
1,000.00
0.00
-1,000.00
-2,000.00
-3,000.00 Jan-13
Source: Lipper
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
NEW FUND LAUNCHES 2013 – YEAR TO DATE
Monthly ETF Launches (01.01.2007 - 30.09.2013) 80
1800 New Funds per Month
70
Sum of New Funds
1600
1400 60
1000 40 800 30 600 20 400
10
0
Source: Lipper
200
0
Sum of New Funds
New Funds per Month
1200 50
ETFs in Europe – New Launches per Quarter 120
100
80
60
40
20
0
Source: Lipper
Promoter Who Launched New ETFs in H1-2013 Amundi 1
UBS 5
ComStage 3
Think Capital 1
State Street 3
Ossiam 1
db x-trackers 14
Lyxor 5
iShares 2
Source: Lipper
First Trust 3
ETF Launches by Asset Type 30
Bond 27
24
21
18
15
12
9
6
3
0
Source: Lipper
Commodities
Equity
Money Market
Other
Real Estate
New ETFs – Assets under Management (in Billion Euro) Equity
3 2.8 2.6 2.4 2.2 2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0
Source: Lipper
Bond
Real Estate
Other
Commodities
Money Market
New ETFs - Market Share per Asset Type 30.09.2013 by Number of Funds Commodities 0%
Real Estate 0%
by Assets under Management
Money Market 1% Other 1%
Bond 28%
Bond 21%
Equity 77%
Source: Lipper
Real Estate 0%
Commodities 0%
Other 1% Money Market 0%
Equity 71%
Summary Fund Launches The ETF industry returned to their launch pattern in Q3 – 2013, after 4 quarters with below average number of ETF launches. The majority of new launched funds in Q3 – 2013 were equity funds (49), followed by bond funds (17). The most successful product in terms of asset gathering so far, is the SSga SPDR MSCI EMU UCITS ETF (IE00B910VR50), with 259.97 million EUR in AuM. Source: Lipper
PROMOTER ACTIVITY 2013 IN DETAIL
ETFs in Europe – Quarterly Promoter Activity 140 Launches 120
100
80
60
40
20
0
-20
-40
-60
Source: Lipper
Closures
Promoter Activity 2013 60
50
40
30
56 20
38
10
0
Launches
Source: Lipper
Closures
Promoter Activity H1-2013 15 Launches 10
5
0
-5
-10
-15
-20
-25
Source: Lipper
Closures
Promoter Activity H1-2013 30 Launches 25
20
15
10
5
0
-5
-10
-15
-20
-25
-30
Source: Lipper
Closures
Summary Promoter Activity The number of available products shrunk during the first six month of the year 2013. This was the first time since the introduction of the ETF segment in Europe, that the market faced a lower number of available products over a six month period … … which is a sign of a matured industry. As the ETF segment is a dynamic growing market, the number of funds will further grow in the future. Source: Lipper
CLOSING REMARKS – ETF IN EUROPE
Closing Remarks – ETFs in Europe The European ETF market is highly concentrated and will not change this pattern in the foreseeable future. AuM in the European ETF sector will continue to grow growth rate will be lower than in the past impact from market movements will increase
Number of funds will also grow further not all markets have already covered by ETFs strategy ETFs may become more important
ETFs on bond markets and investment strategies might become the key driver for future growth Source: Lipper
Closing Remarks – ETFs in Europe The overall ETF landscape in Europe might change: new/different ETF promoter will enter the market established promoter will leave the market fund launches, as well as closures and mergers will change the product ranges with a trend to more granularity. new distribution models might be introduced new regulations on all levels, might be a driver for innovation/cgange within the industry Source: Lipper
DISCLAIMER © Thomson Reuters 2012 All Rights Reserved. This presentation is for informational purposes only, and do not constitute investment advice or an offer to sell or the solicitation of an offer to buy any security of any entity in any jurisdiction. No guarantee is made that the information in this presentation is accurate or complete and no warranties are made with regard to the results to be obtained from its use. In addition, Lipper will not be liable for any loss or damage resulting from information obtained from Lipper or any of its affiliates.
40
