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The Goldman Sachs Asset Management is aiming to become a “main provider” of active exchange funds in Europe as groups of funds including JPMORGAN, Schroders and Jupiter prepared to expand throughout the market.
Hilary Lopez, head of third-party property at Goldman Sachs Asset Management, said there was “important interest and demand” by property managers and private banks for ETF-active in Europe.
“We have essentially invested in our ETF resources in this region,” she added, stressing that GSAM plans to launch another range of active ETFs over the coming months. “We see an important opportunity at ETF active. Our goal is to be an active active ETF provider in Europe. “
Shares in ETFS trade in scholarships mean that investors can access directly throughout the day. ETF usually follow an index, such as FTSE 100 or S&P 500, up or down.
They have grown in popularity over the past decade, in part because of their low tariffs. Blackrock and Vanguard have led the charge, with the ETF market globally increasing to 13.8Tn $.
But the so-called active ETFs try to beat the index because fund managers are able to select certain shares or bonds and exclude others.
Last week, Jupiter entered the active ETF market, while Schroders revealed on Friday that he had introduced ETF to be active throughout Europe.
“What I know from our client’s engagement is that there is a considerable interest and demand in active ETF,” Lopez said.
“It’s the first days in Europe, but what we noticed last year was a record entry into this region. We could easily see those flows that double over the next two years.” Many of these active ETFs will also be made Available in investment countries, such as Hargreaves Lansdown, sources said.
However, the European market is small, with about $ 50 billion in assets under management.
Analysts are skeptical about the benefits that ETF active give to investors and note that the product is another way for funds to recover traditional mutual funds, many of which have suffered from client withdrawals.
Kenneth Lamont, the director at Morningsar, said that “growth in ETF -active seems more driven by fear of loss than by any particular advantage of the ETF structure, while the benefits for investors remain modest”.
“For many assets, active ETFs offer a way to exploit home expertise or to repake existing strategies to attract new investors through fresh distribution channels.”
Lamont noted that the European Active ETF market remains less than 0.5 percent of the wider market of European funds.
“In SH.BA, ETF active have flourished in part because of their tax advantages over traditional mutual funds – a benefit that does not extend to Europe,” he added.
Matthew Beesley, Jupiter’s chief executive, told The Financial Times that “the danger is that if you sit there and do nothing, ETF will continue to cannibalize the assets held in traditional funds.”
Traditional mutual funds have lost money at ETF, as investors have chosen lower cost products. According to the Network Calastone funds, retail investors withdrew £ 1 billion from the UK capital funds in January.
Asset managers remain bullies and are sharing more resources to adult in the active ETF space. Research by Janus Henderson suggests that the active ETF market in Europe can increase to more than $ 1 by 2030.
Bryon Lake, the leading transformation official at the Goldman Sachs Asset Management, said that Europe will surely “follow a model similar to SH.BA” in terms of growth, stressing that “it is not an extent to say that ETF – of active will grow at a fast pace. “
According to Morningstar, ETF streams have arrived €7.3bn in the last months of 2024, compared to around €70bn for traditional passive ETF.
