German asset manager DWS Group had the strongest year of all 25 European exchange traded fund (ETF) issuers, beating BlackRock which came second.
JP Morgan Asset Management, which saw a spike in demand for active ETFs, came third place. The firm saw US$5.7 billion net new assets last year, with a 42.5% market share.
The inaugural ETF Issuer Power Rankings 2023 measure four performance metrics: asset gathering; revenues; activity; and theme presence.
Tom Eckett, analyst at ETF Stream, said: “Even industry giants like BlackRock cannot take their market position for granted. Picking the right ETF issuer is a crucial consideration in the product selection process for professional investors – especially as more niche players enter the already saturated market. Above all else, these findings reveal that building strong momentum in this competitive market is a complex and multifaceted endeavour.”
The league table assessed which asset managers displayed the strongest momentum on a relative and absolute basis versus their competitors over 2023.
The rankings also showed that UBS Asset Management and State Street Global Advisors failed to make the top 10 after suffering noticeable outflows and low activity. The Swiss asset manager suffered US$561 million of outflows over the year.
DWS scored the highest on ‘activity’ and ‘theme presence’ in 2023, after capturing US$22.5 billion inflows and launching 46 new ETFs over the course of the year.
BlackRock, which has a 43.9% share of the European ETF market, came second after a strong year from a revenue-generating perspective. The world’s largest asset manager saw US$71 billion net new assets into European-listed ETFs in 2023 amid increased investor demand for fixed income ETFs.
Overall, DWS was more active in the market than BlackRock, launching the most ETPs in 2023 and enjoying stronger relative inflows. European-listed ETPs saw US$158 billion inflows last year, up from US$84.5 billion in 2022, according to data from ETFbook.
‘Asset gathering’ represents a combination of absolute and relative (to AUM) flows in 2023, while ‘revenues’ constitutes a combination of absolute revenue from fees and revenue per ETF.
‘Activity’ measures the number of ETP launches and European firsts, while ‘theme presence’ measures absolute flows across nine segments, including equities, fixed income, commodities, ESG, emerging markets, thematics, sectors, actives, and factors.
©Markets Media Europe 2024
