Industry Updates

ETF launches in Europe slow to lowest level since 2017

Tom Eckett

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ETF launches in Europe last quarter slowed to their lowest number in three years as issuers took stock amid the market turmoil.

According to data from Bloomberg Intelligence, some 31 ETFs, including currency-hedged share classes, were launched this side of the pond in Q1, down from 47 in 2019 and 100 in 2018.

The slowdown in launches comes as global markets were impacted by the rapid spread of the coronavirus.

The S&P 500 suffered its worst quarterly drop since the Global Financial Crisis in 2008 plummeting over 20% while the Dow Jones fell 33%, a figure not seen since 1987.

Athanasios Psarofagis, ETF analyst at Bloomberg Intelligence, said this trend has occurred during past corrections.

“Typically, you see teams put new launches on hold and focus on supporting clients and their current suite.

“Once markets settle, we will likely see a rush of issuers bringing new products to market,” he added.

Notable launches this year included Credit Suisse’s re-entrance into the European market seven years after selling its ETF arm to BlackRock and Lyxor launching Europe's first climate change ETF suite.

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