Fund selectors to allocate more to ETFs despite bear market liquidity fears

EMEA fund selectors to allocate 34% to ETFs in two to three years

clock • 2 min read

Allocations to exchange-traded funds (ETFs) in client portfolios are set to rise over the next two to three years, despite two-thirds of fund selectors citing liquidity issues under a major bear market as the biggest risk of investing in ETFs.

The survey of 240 fund selectors across the US, EMEA, Asia Pacific and Latin America by JP Morgan Asset Management (JPMAM) found that ETFs made up 22% of client portfolios in 2016 on a global basis and is set to increase to 39% in the next two to three years. In EMEA, respondents expect to allocate 34% of their portfolios to ETFs in the next two to three years, up from 19% in 2016 and 25% currently, while those in the US were already allocating 41% and expected this to climb to 54% in two to three years. JPMAM launches pair of multi-factor ETFs Asked what they saw as the biggest th...

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