Why do we not do more to support the underdog?
Michael O'Riordan
Connecting the ETF ecosystem / Educating the market / Bringing ETFs to more people.
With Janus Henderson announcing last week that they are entering the European ETF market, it marks another milestone for the growth of ETFs in this part of the world.
Great news yes, but also a chilling reminder that the chances of success for the boutique manager with a “great product idea” is extremely slim.?
Did you know that and 74% of all ETF managers in the US have less than $1b AUM and in Europe it's 52%??? Such numbers would make you think whether it’s even worth the effort in the first place.
BUT God loves a trier and as long as there are good ideas then there will be people willing to roll the dice with them. We all love the underdog, but yet we are never willing to bet on them. Just ask the guys at Tabula.
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Listen and Learn
Our newest podcast where we explore the stories behind companies who have achieved success in the ETF ecosystem, trying to uncover what led to that success. This week we speak to Roundhill Investments co-founder, Tim Maloney. ?
Things of Interest
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Banks rule distribution in Europe ?
Interested data published from EFAMA this week highlight how funds are distributed across Europe. As you can see Banks dominate distribution, but unfortunately Banks don’t dig ETFs as there are no sweet kickbacks for them. It just highlights the challenge for managers to distribute their ETFs in Europe. ?
Tabula gobbled up ?
Speaking of challenges, Janus Henderson has announced that they are acquiring Tabula, the European Fixed Income ETF manager. No surprise there really. Tabula, established in 2018, have struggled to kick on since launch, a common theme amongst boutique managers in Europe. ? It just goes to show, the ETF space in Europe is hard to crack and without meaningful distribution channels you really are facing a massive challenge. ?
Crypto falling on deaf ears in Europe ?
Why is crypto not resonating with European Investors? The below graph says it all really. Did you know crypto ETPs have been around in Europe since 2015, yet are barely scratching the surface in terms of AUM raise. Other examples of the differences between US and European investors. ?
Investors flock to Aerospace & Defence ETFs amid conflict ?
Vanguard raising fees? ?
Vanguard picked up some bad press last week in the US by announcing a $25 “transaction fee” for any individuals calling the company for assistance in trading mutual funds and ETFs. Whilst trading is still commission free it seems like the company doesn’t want to be bothered with little old ladies calling them up asking random questions. ?
Movers and Shakers ?
Salary Trends ?
Stay tuned here. Our 2024 ETF salary has closed and the data is being analysed. We are sure there will be some interesting trends to share so watch this space. ? ?
Tip of the week ?
In one of my recent podcast interviews, Sue Thompson, Head of Americas Distribution at SPDR said looking back on her career she realised she would have been a lot happier if she didn’t take things so personally. Wise words indeed and something for us all to take on board.
Founding Partner at Libra Investment Services
10 个月Let's not be surprised. Who dominated the ESG narrative? Instigating and inflating the concept because it was in their interests to do so. In the absence of being able to get paid on the basis of performance the easy alternative was growing (to get paid) AUM despite the fact that ESG strategies (by and large) lead to further poor performance for their clients. I assume this it is the same with ETF's. They launched Passive ETF's because Active wasn't working. When that was exhausted they moved / are moving into Active ETF's which requires little effort and no innovation. My point here is that rather than innovate and look for innovative partners who could disrupt and deliver performance which is what successful industries do, the latest being AI - the dominant players take the easy option because they can and it keeps the little man in his place. God loves a trier although (sadly) i think he may have other things on his mind right now. I fear we can't rely on him although it shows how difficult it is to initiate change if we are even considering it.