Although exchange traded funds are experiencing strong growth in Europe, they have proved more successful in the US. Why are the two markets proving so different for the product?
There can be no doubt that the success of exchange traded funds (ETFs) in the US has significantly exceeded that in Europe. What is the current state of the two markets and why are there differences? The US ETF market is now more than 10 years old. Assets under management (AUM) by the end of 2003 exceeded $150bn - up from only $100bn at the end of 2002 - so it is still an asset class displaying significant growth. While QQQ and SPY (the ETFs on the S&P 500 and Nasdaq100) typically dominate the volumes, it is a market in which a large number of participants trade many different ETFs every ...
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