PwC Report Foresees Major Asset Growth, Product, Distribution Trends for ETFs

A report from PwC explores the latest trends in the global and regional ETF markets, including product development and distribution trends, which are expected to drive ETF growth over the next five years. PwC surveyed 60 global executives, which account for over 80% of global ETF assets and asked a variety of questions on the ETF industry. More than half of the executives PwC surveyed responded that global ETF assets under management will reach at least $18 trillion by 2026, representing a 14.6% compound annual growth rate (“CAGR’) between June 2021 and June 2026. The report observed that product trends are skewing toward more actively managed vehicles. “Thematic ETFs, active ETFs and crypto ETFs in particular stand out as potential sources of demand and untapped opportunity.” Digitized venues are gaining in terms of how ETFs reach investors, the report said. “Online platforms stand out as the primary source of expected ETF demand over the next two to three years for the participants in our survey.”  ESG considerations also are prominent on ETFs’ strategic agenda.