S&P Dow Jones Indices CEO: A number of ETF players will not survive

Consolidation to continue

S&P Dow Jones Indices chief executive Alex Matturri has issued a stark warning for smaller ETF providers trying to break into Europe, suggesting they need to consider M&A in order to survive.

Matturri predicted there will be continued consolidation within the ETF industry as there are currently too many similar products, while the major providers have already taken market share. Last year saw a number of acquisitions across the ETF space, with Invesco Powershares snapping up Source and Guggenheim Partners' smart-beta range, while WisdomTree acquired ETF Securities for $611m. Head of ETPs at S&P Dow Jones Indices, John Davies, said: "The big will get bigger and the small, if they are lucky, will get swallowed up or, if they are unlucky, will go out of business."  Matturr...