PORTFOLIO DESIGN

Discover the ETF Desk Reference

21 sep 2017
por BlackRock

This comprehensive ETF guide for institutional investors highlights how the industry is using ETFs across asset classes to improve portfolio outcomes and showcases the breadth of our institutional services and tools.

Growth of the ETF industry

As uncertainty emerges as the new normal in markets, ETPs (Exchange traded products) have become more appealing due to their simplicity, transparency and lower cost. Global ETPs flows showcase the tremendous growth the industry has seen in the past decade, reaching the $3 trillion mark at the end of 2016.1

Global ETP Landscape

Chart: Growth of the ETF industry

Source: BlackRock, Markit, as of 12/31/16. ETPs include exchange traded funds (ETFs) registered with the SEC under the Investment Company Act of 1940 (open-end funds and unit investment trust or UITs) and certain trusts, commodity pools and exchange traded notes (ETNs) registered with the SEC under the Securities Act of 1993.

Investment trends

As ETF adoption continues to grow globally among institutions, their use as both strategic and tactical tools Europe is also expanding. The ETF Desk Reference deep-dives into the four investment trends are shaping the way European investors are using ETFs:

  • The rise of factor investing
    Adopting a factor lens can help investors better understand their portfolios and potentially improve risk-adjusted returns. In Europe, 26% of institutions are employing smart beta ETFs.2
  • A new toolkit for managing fixed income portfolios:
    Bond ETFs are emerging as a portfolio management tool for institutions to navigate trading challenges. In response to growing trading challenges, 72% of institutional ETF investors use bond ETFs.2
  • ESG investing combining purpose and performance:
    The number of investors looking to incorporate their social and environmental views into their portfolio is on the rise for various reasons. In fact, 23% of institutional ETF investors plan to increase their allocation to ESG strategies.2
  • ETFs for derivatives users:
    Investors who desire index exposure are increasingly finding that ETFs can be an efficient, straightforward alternative to derivatives. In fact, 33% of institutions replaced derivatives products with ETFs in the last year.2

Read more about these trends, discover case studies and learn more about our institutional services and tools in the ETF desk reference.

Read the ETF desk reference