ETF assets will surpass $20tn by 2026, PwC predicts
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Assets managed by exchange traded funds globally could grow to more than $20tn by 2026, according to a PwC report, which revealed executives expect the ETF market’s “phenomenal momentum” of the past five years to continue.
In its new report, entitled ETFs 2026: The next big leap, the accountancy giant predicts that assets will grow to more than $20tn, representing a 17 per cent compound annual growth rate is achievable.
“Given global ETF AUM growth of 22 per cent over the past five years ending December 2020, combined with record inflows, new entrants, innovative products and distribution opportunities, we believe that a projection of over $20tn global ETF AUM by 2026 can be achieved,” the report said.
Global ETF assets nearly tripled from $3.4tn in 2016 to more than $10tn in November last year.
PwC said 58 per cent of respondents to its survey expected ETF assets to increase to at least $18tn by 2026, representing a 14.6 per cent CAGR between June 2021 and June 2026.
PwC conducted the survey among 60 executives from providers representing over 80 per cent of global ETF assets.
The poll also found that 45 per cent of respondents expect over half of their 2022 product launches to be focused on environmental, social and governance investing and that more than 80 per cent expect online platforms to represent the primary source of future demand for ETFs.
PwC says in its report that “accelerating innovation is opening up a wealth of investment opportunities and customer choice within the ETF market” and that thematic, equity and cryptocurrency ETFs in particular “stand out as potential sources of demand and untapped opportunity”.
*Ignites Europe is a news service published by FT Specialist for professionals working in the asset management industry. It covers everything from new product launches to regulations and industry trends. Trials and subscriptions are available at igniteseurope.com.
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