Industry Updates

ETF Wrap: Savings plans boom in Europe gathers pace

The digital race for retail investors, the challenges of entering European ETFs and a legacy adviser turning to passives made headlines this week

Jamie Gordon

The rise of retail ETF adoption was in focus this week as new research indicated the number of ETF savings plans in Europe would quadruple from 7.6m to 32m over the next five years.

The BlackRock and extraETF research also said annual investments in the plans will boom from €15bn today to over €64bn.

BlackRock is betting big on the rise of retail, having recently invested in German fintech Upvest and partnered with a number of firms to distribute their ETFs including Monzo.

Others are hot on its tail, with DWS now operating 21 partnerships for digital distribution of its ETF range.

Low barriers to entry, high barriers to success 

Elsewhere, US issuer Roundhill is set to exit the European market after announcing the closure of its metaverse ETF.

After amassing just €1.7m assets under management (AUM) in 18 months, CIO Tim Maloney said the ETF issuer would refocus its distribution efforts in the US.

SJP to turn to passives 

Finally, UK wealth manager St. James’s Place is conducting the largest overhaul to its fee structure in its 33-year history include scrapping penalties for early withdrawals.

As part of the announcement, outgoing CEO, Andrew Croft, said the overhaul would also make it “easier” for SJP to incorporate passive funds into its range.

ETF Wrap is a weekly digest of the top stories on ETF Stream

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