What Europe can learn from the US

ETFs

Dan Draper, global head of ETFs at Credit Suisse, looks at why European investors have not fallen for exchange traded funds in the same way as their US peers.

At the end of August 2010 it was estimated over $231bn was invested in European ETF products, compared with just $0.7bn at the turn of the millennium. While this growth has been rapid it should not disguise the fact the industry is still in its infancy compared with the US, where retail investors currently represent over 50% of overall ETF ownership, compared to Europe which is less than 10%. There are some marked differences between the US and European markets. The US Early adoption from retail investors has had a positive impact on ETF growth in the US where there is a strong self di...