What are the biggest risks emerging from the rapid growth of ETFs?

150 surveyed

Tom Eckett
clock • 1 min read

Liquidity risks and operational errors are the two biggest risks for asset managers emerging from the boom in ETFs, according to the Temenos Multifonds Every Funds Survey.

The report, which surveyed 150 asset managers, custodians, third-party administrators and professional service providers, found 34% of respondents said ETF liquidity was their key concern while 20% said operational errors. Furthermore, the research found respondents who planned to offer ETFs said operational technology and systems, regulatory compliance, external connections to exchanges and authorised participants were among their biggest challenges. As a result, 25% of respondents said they were not keeping pace with the rapid ETF growth and complexity. The global ETF and ETP ind...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot