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ETF users want more EM equity and smart beta flavours

Emerging market equities and factor investing are the two areas where European investors want to see more and different ETF products, according to a recent survey of 222 European investors by the EDHEC Risk Institute in France.

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PA Europe

According to the study, which was commissioned by asset manager Amundi, 43% of respondents are craving for better ETFs in EM equities, while the next three spots on the investor wish list all concern smart beta strategies (even though smart beta ETFs have been flooding the market in recent years), suggesting it’s these two areas which (still) have the best growth prospects.

 

This is especially good news for smart beta ETFs, which are currently used by about half of Europe’s ETF-users, according to the survey. Equity, sector and commodity ETFs are currently the most widely used index-tracking options. Though fixed income ETFs are used much less than their equity equivalents, bond investors don’t have a strong need for more products in this space (see chart above).

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