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ETF Global OutlookSPECIAL REPORT 2022In association with
CONTENTSAn extraordinary year of growthI04Interview: Lida Eslami, Head of BusinessDevelopment, ETP and IOB, London StockExchanget has been an extraordinary year for ETFs worldwide, with assets increasing to the USD10 trillion mark and a huge range of exciting and innovative launches, as thematic ETFs dominatedthe play list.Our interviewees for the ETF Express Global Outlook Report 2022, published in associationwith The London Stock Exchange, are all drawn from the buy-side, investors in ETFs representingbillions of dollars in the sector, hailing from the US and Europe.The key themes of ESG and cryptocurrencies have dominated this year and our investor grouptells us that they aren’t going away any time soon. Henry Timmons, director of ETFs at RichardBernstein Advisors LLC in the US, describes the recent denial of a spot crypto ETF by the SEC as‘confounding’, while Mary Hagerman, portfolio manager and investment adviser with RaymondJames Ltd in Montreal, Canada, predicts more ETFs created in the crypto space, linked to theactual coin or the blockchain technology behind it, and also adds: “In the search for yield, I thinkwe will see a lot more hybrid fixed income products that are managed investments in an ETF wrapper. This could possibly include ETFs with a fixed distribution policy, use of derivatives and more.”In the UK, Ben Seager Scott, Head of Multi Asset Funds, Tilney Group Ltd is not such a fan ofthe cryptocurrency products. When asked if crypto will continue to grow within the ETP format,he says: “Sadly, probably so, driven by continued heavy demand, especially from retail. Now, I’mall for offering investors choices and a range of tools to use, but this remains an area where I thinkmany investors may be drawn in by hype rather than fully understanding cryptocurrencies andmay not realise some of the mechanisms underlying these formats.”Over in Germany, where crypto products are allowed, Jacob Hetzel, Head of Distribution,Scalable Capital says: “We see ETPs as an essential part of the future of crypto investing. Thereason for this is that many people want to participate in the price trend of crypto assets, but donot have the opportunity or the knowledge to trade in crypto values. This is fundamentally simplified by holding a crypto ETP right alongside other ETFs in the portfolio, so that more peoplehave access to these kinds of digital assets, while this asset class is secure, easy to trade and tointegrate into the portfolio context.”Read the ETF Express Global Outlook Report 2022 to find the strong and diverse opinionsof the investors in this vibrant industry.Chapter 1: Asset growthBeverly Chandler, Managing Editor, ETF ExpressChapter 6: Looking ahead06Chapter 2: Geographical split09Which geographical areas will do the best interms of asset raising over 2022: UK, Europe,Canada, US or Asia?Chapter 3: Trends11Which sector trends and thematics will dominateETFs over 2022?Chapter 4: Distribution14Will the US see continued uptake of ETFs byinstitutions and will Europe see greater involvementfrom financial advisers and wealth managers?Chapter 5: New structures1617182021ETF GLOBAL OUTLOOK REPORT Jan 2022The ETF industry has seen extraordinary growthover 2021 – can this continue? Will global ETFassets rise, level out or fall over 2022?The rise of the semi-transparent ETF in 2020and 2021. Will these new products continue tofind approval with investors in the US in 2022 orbegin to appear in Europe?2021 was the year of ESG investing: will thishuge trend continue to dominate investment inETFs across the world?And the other big theme for 2021 wascryptocurrencies and digital assets – will thistheme continue to grow within the ETP format?For US markets, mutual fund conversion to ETFshas been a big 2021 story – will this continue?Do you feel well-served by the ETF industry interms of fund offerings?www.etfexpress.com 2
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INTERVIEWETF growth a testament to ETFs says LSE’s Lida EslamiLida Eslami, Head ofBusiness Development,ETP and IOB, LondonStock Exchange, has spent 10years working with ETPs at theLondon Stock Exchange, seeinggrowth year on year.“Even in early 2020 with theCovid pandemic and unprecedented market volatility, ETFs proved their resilience which isa true testament to the products,” she says. She notes thatFixed Income ETFs helped with price discovery in underlyingbonds in the portfolios, even when the underlying bond marketswere difficult to trade, and that the exchange kept its marketopen throughout that period, providing orderly and fair pricesfor investors.“What you hear from the industry is that ETF growth will continue,” she says, citing the figures that show European ETFsAUM is up 17 per cent year on year in dollar terms, with assetsstanding at USD1.5 trillion.“When you look at how ETPs overall are growing, there aredistinct indicators we are observing, including the number ofThe number of new ETF issuers and newproducts have gone up this year withseven new issuers coming to the marketand 251 new ETP listings on London StockExchange, during January to November,compared with 174 last year.Lida Eslami, London Stock ExchangeETF GLOBAL OUTLOOK REPORT Jan 2022new products, the assets under management and the trading turnover of these products,” Eslami says. “The number ofnew ETF issuers and new products have gone up this year withseven new issuers coming to the market and 251 new ETP listings on London Stock Exchange, during January to November,compared with 174 last year.”“It is beyond what we were expecting in terms of newnumber of products,” she says, “but the market has been activeand both existing and new issuers have continued to bring innovative products to the market.”Eslami also points out the strength of the secondary markettrading for ETPs. “We are a stock exchange and home for ETFlisting and trading. We provide a resilient platform for ETF trading, supported by 20 registered market makers who provideexecutable prices on exchange and more than 80 member firmswho are tapping into the liquidity available on our central limitorder-book. We partner with our trading participant and marketmakers to innovate and introduced new functionalities suchas RFQ 2.0 for ETPs, which shall help investors achieve betterexecution outcomes.”“On the secondary market side, we have witnessed 100 percent orderbook growth in the last six years. ETPs turnover in2020 was up by 50 per cent year on year and this year we maintained that on the London Stock Exchange with an average dailyturnover of GBP607 million. LSE’s ETP total orderbook turnoverfor 2021 was around GBP140 billion, accounting for 13 per centof total LSE turnover; and the top 10 most traded instrumentson the LSE frequently include ETPs. We believe that this trendof on-exchange ETP execution will continue to outpace tradinggrowth elsewhere, as more and more brokers and end investorsutilise new execution tools to obtain, and importantly to betterunderstand and evidence, best execution.”As the buy-side investors have detailed within this report,ESG is a dominating theme in ETFs in 2021. “It’s clear nowthat ESG is core and ETF issuers are seeking to address globalclimate concerns and related issues such as those covered bythe UN’s Sustainable Development Goals, by issuing ESG products,” Eslami says.On the London Stock Exchange this year, there have been80 new ESG ETFs, bringing the total number of ESG ETFs to244. And, more importantly, trading turnover in ESG ETFs hasincreased by almost 150 per cent year on year.Eslami says: “Investors have become more familiar with theseproducts and are looking to include them as part of a diversifiedportfolio so ESG will stay on this growth trajectory, both in termsof trading activity and assets under management.”Other themes that have been represented by ETP launchesover the year have included, a China ESG product, a ChinaTreasury Bond product, as well as ETPs representing blockchainand cloud computing. “I think what is a testament to the ETFmarket is that they are proactive in terms of identifying gaps inthe market and launching products to fill those gaps. This givesinvestors an opportunity to reach that market and meets investordemand in terms of looking at different asset classes, geographies, currencies and sectors,” Eslami says. “I am excited to seewhat other new products will come through the exchange.”March 2021 saw the London Stock Exchange win best trading venue for ETPs with the ETF Express European ETF awards.“The London DNA is global and we are attracting global ETPissuers to list on the London Stock Exchange and grow internationally beyond the UK,” Eslami says. “It’s a marketplace whereinternational companies can raise assets and reach a diverseinvestor base.”She cites big asset managers such as Northern Trust, whoseFlexShares ETF brand entered European ETF market with a LSElisting earlier this year. “This trend will continue as will the utilisation and adaption of ETFs by both institutional and retail investorsas they embrace the benefits that these products offer.” nwww.etfexpress.com 4
Chapter 1Asset growthGlobal ETF assets crossedUSD1 trillion in growth this year,and I anticipate at least anotherUSD1 trillion in 2022.Henry Timmons, Richard Bernstein AdvisorsETF GLOBAL OUTLOOK REPORT Jan 2022www.etfexpress.com 5
A S S E T G ROW T HThe ETF industry has seen extraordinary growth over 2021 – can this continue?Will global ETF assets rise, level out or fall over 2022?ROBERT “BOB” SMITHJAMES MCMANUSBEN SEAGER SCOTTCIO & President, Sage Advisory ServicesChief Investment Officer, NutmegHead of Multi Asset Funds, Tilney GroupGlobal ETF assets will continue to rise moderately andin line with the market’s overall growth and investmentstrategy ETF development trends. We expect the equitymarkets to realise more conservative returns in the 3-5per cent range given our expectations for lower economic growth, softer Y-O-Y earnings comparisons, andtax policy headwinds. Equities have had a really goodrun this year, and we expect it to be tempered in 2022.On the fixed-income side, we expect more volatility anda moderately higher-rate environment. All these thingscombined will likely see a return dampening environmentcompared to what we’ve seen the past couple of years.Global ETF assets will continue to rise in 2022, continuing a trend that shows no sign of slowing. The primarydrivers for investors to focus on ETFs – choice, simplicity, diversification, transparency and cost – all remain atthe forefront of investors’ minds. The expansion of theETF product set to include further active, thematic andresponsible strategies will drive further growth.Globally, I think there’s still much further for ETFs to gofor several reasons. Firstly, the continued trend simply tofavour passive vehicles to lower costs and dispense withthe variability of returns that comes with active management seems likely to persist for the long-term. Secondly,there is rapidly growing interest in thematic investingfor which ETFs are ideally suited and can be created inmuch finer detail than has been in the case in the past.Finally, mostly in the US, but increasingly in Europe, isthe rise of active ETFs, a manifestation of the mantrathat we’ve said many times in recent years: ETFs are justa wrapper (i.e. they don’t have to be synonymous withpassive/index tracking)!ETF GLOBAL OUTLOOK REPORT Jan 2022www.etfexpress.com 6
A S S E T G ROW T HJACOB HETZELHENRY TIMMONSHead of Distribution, Scalable CapitalDirector of ETFs, Richard Bernstein AdvisorsGenerally speaking, I am confident that the demandfor ETFs will remain high and is continuing to rise.Since ETFs are an efficient and cost-effective way ofinvesting money, the current trend represents a logical evolution of financial investments into a simplerand more transparent structure. At the same timenot only retail investments, also institutional flows aremoving towards ETFs across different asset classes.However, it should also be noted that retail investors’flows, in particular, partially depend on the currentmarket sentiment. Therefore, it is possible that ETFdemand could decline when the generally positive trend in the stock markets turns the other way.Nevertheless, our customers make active use of ETF savings plans to invest regularly on amonthly basis. This is one of the best ways for successful long-term investing, regardless of thecurrent market situation.Global ETF assets crossed USD1 trillion in growth this year,and I anticipate at least another USD1 trillion in 2022.MARY HAGERMANPortfolio Manager &Investment Adviser, Raymond JamesETFs are on a rising trajectory that will continue. Thereare reasons for this including the do-it-yourself investingand the growing conversion of mutual funds into ETFs asdiscussed later.MARGUERITA CHENGCEO, Blue Ocean Global WealthThese factors have contributed to extraordinary growth forthe ETF industry in 2021: Client demand for ESG investing; Low interest rate environment and growing concernsabout inflation; Interest in dividend and income-oriented investing; Availability of blockchain, bitcoin and cryptocurrencyETFs.RUSTY VANNEMANChief Investment Strategist, Orion Advisor SolutionsETF growth was indeed amazing in 2021. Growth will continue in2022, both in terms of net new dollars and increased fund marketshare, but it seems to be a smarter bet that growth will slow compared to the torrid pace of 2020/2021. This would simply be due toslowing investor demand for investments of any sort.MATT BRENNANHead of Investment Management, AJ BellIRENE BAUERThe ETF wrapper is the dominant vehicle for new indexedproducts. In addition, we are seeing a number of other strategies such as thematic and active using the ETF wrapper.Although the growth rate is likely to temper for pure ‘passive’ strategies, there is still room for significant growth ofthe wrapper overall.Co-Founder, Algo-ChainETF GLOBAL OUTLOOK REPORT Jan 2022Yes, what a great success story ETFs have been. In terms of growth,they are still a small proportion as a percentage of the overall marketsize. So, I can’t see its growth stopping any time soon. The ease ofuse – and tax advantages in the US – make it the ideal product formany investment choices.www.etfexpress.com 7
Chapter 2Geographic splitIn terms of just absolute numbers,US flows have been dominant andit’s likely this will continue. Do expectgrowth in all regions.Rusty Vanneman, Orion Advisor SolutionsETF GLOBAL OUTLOOK REPORT Jan 2022www.etfexpress.com 8
GEOGRAPHICAL SPLITWhich geographical areas will do the best in terms of asset raising over 2022:UK, Europe, Canada, US or Asia?BEN SEAGER SCOTTHead of Multi Asset Funds, Tilney GroupMATT BRENNANI’m almost certainly falling victim to availability bias, but I thinkEurope has a lot of potential for asset growth in 2022. The costbenefits of ‘core’ passive investing via ETFs is really taking holdand the consequential benefits of further cost reductions arestarting to become apparent. At the same time, investor appetiteseems to be broadening out into thematic investing via ETFswhich is still fairly nascent in Europe compared to the US. Amain difference is that I would expect much more growth inactive ETFs in the US compared to Europe.Head of Investment Management, AJ BellJACOB HETZELIRENE BAUERHead of Distribution, Scalable CapitalCo-Founder, Algo-ChainWe see substantial growth potential for ETFs among retail investors inEurope, especially through savings plans. Over three million ETF savings plans are now executed each month just in Germany, a numberthat has increased by over 50 per cent within the past 12 months.Only about 10 per cent of Germans held ETFs last year – in timesof zero interest rates and high inflation, the potential is enormous, asthere is almost no alternative to the stock market.(Since we are only active in Europe, we cannot comment ondevelopments in other markets.)On a relative basis, Europe (including the UK) saw the strongest growth rates for 2021 andI think it will continue with that as it has quite some catching up to do compared to the US.On an absolute basis, it will probably be the US again. It is a well-established market andETFs are very popular for the 401k and other savings markets.The US is still the dominant market for ETFs, and I donot expect this to change any time soon. In the US theETF wrapper has additional tax advantages compared tomutual funds. In addition, the US stock market structuremakes it easier to take advantage of things like additionalliquidity provided by the structure. As such I expect theUS to still grow faster until Europe deals with some of thestructural issues.RUSTY VANNEMANChief Investment Strategist, Orion Advisor SolutionsIn terms of just absolute numbers, US flows have been dominant and it’s likely this willcontinue. Do expect growth in all regions.BOB SMITHJAMES MCMANUSCIO & President, Sage Advisory ServicesChief Investment Officer, NutmegIt’s the US, and then possibly followed by Europe.Mainly because those markets have large financialcentres, and indeed the large multinational institutions.China, Korea, and India all have different types of interesting dynamics at work, making them countries towatch from an investment perspective but less attractive compared to the higher quality developed markets.UCITs remains a key growth area as it is favoured by clients outside of the US.ETF GLOBAL OUTLOOK REPORT Jan 2022HENRY TIMMONSDirector of ETFs, Richard Bernstein AdvisorsI think 2022 will exhibit a bit of home country bias with flows to US ETFs garneringmore than the UK, Europe, and other countries outside the US.www.etfexpress.com 9
Chapter 3TrendsThematic ETFs allow investors toinvest in emerging technology andmarket trends. Of course, I thinkinnovative healthcare and innovativetechnology are compelling areas.Marguerita Cheng, Blue Ocean Global WealthETF GLOBAL OUTLOOK REPORT Jan 2022www.etfexpress.com 10
TRENDSWhich sector trends and thematics will dominate ETFs over 2022?MARY HAGERMANBEN SEAGER SCOTTMARGUERITA CHENGPortfolio Manager & Investment Adviser, Raymond JamesHead of Multi Asset Funds, Tilney GroupCEO, Blue Ocean Global WealthESG investing has come to the fore and will continueto generate more interest and new ETF products in thefuture. Look for increased interest and access to directinvesting technology with ETFs.In the search for yield, I think we will see a lot morehybrid fixed income products that are managed investments in an ETF wrapper. This could possibly includeETFs with a fixed distribution policy, use of derivativesand more.I think there will be more ETFs created in the cryptospace, linked to the actual coin or the blockchaintechnology behind it.I think active ETFs will continue to gain traction in the USgiven the more favourable structural environment. Morebroadly, I think ETFs focussed on sustainable themes willdo well and will broaden out further – from lightly-tiltedbroad indices to more specific restrictions that meetthe particular values of investors, as well as with morespecialisation to sub-sectors such as energy efficiency,inequality targeting, etc.Thematic ETFs allow investors to invest in emerging technology and market trends. Of course, I thinkinnovative healthcare and innovative technology arecompelling areas. Innovative technology can includecloud computing, robotics, artificial intelligence, blockchain, cybersecurity, green energy, etc. Innovativehealthcare includes biotechnology, oncology, genomics,therapeutics, pharmaceutical, etc. One trend that I findvery interesting is infrastructure.ETF GLOBAL OUTLOOK REPORT Jan 2022www.etfexpress.com 11
TRENDSJACOB HETZELMATT BRENNANHead of Distribution,Head of InvestmentScalable CapitalManagement, AJ BellA number of sector trendscan already be seen today, inparticular: blockchain, cleanenergy and innovative technology such as biotech orartificial intelligence. Anothertopic that is rapidly gaining in importance and becoming anessential part of ETF investments is: ESG. Sustainability ismoving from a niche trend to a prerequisite for long-termand successful investments, which is clearly evident in theproducts our customers ask for. For this reason, we wentone step further in our digital wealth management offeringand replaced ESG-screened ETFs with even stricter SRIrated products.2021 has seen the growthin cryptocurrency ETFs, andI would expect this trend tocontinue into 2022. Climatechange is at the top of manypeople’s agenda, so anythemes that help facilitate this transition are likely to growassets, for example ETFs trading carbon credits.RUSTY VANNEMANChief Investment Strategist, Orion Advisor SolutionsAt this point, it seems like the easier calls would be infrastructure and clean energy thematics. That said, it’s likelysomething else that will be on top of the flows leaderboardby year-end!JAMES MCMANUSChief Investment Officer,IRENE BAUERNutmegCo-Founder, Algo-ChainThe longevity of global environmental and social policyinitiatives that pose structuralsocietal challenges, such asclimate change, will ensureresponsible and environmentalindex approaches will be at the forefront of asset gathering in2022. Thematics that focus on longer term structural trends,such as electric vehicles and clean energy, will continue toattract attention.HENRY TIMMONSDirector of ETFs, Richard Bernstein AdvisorsWe see continued flows into ESG should occur in 2022.ETF GLOBAL OUTLOOK REPORT Jan 2022We have definitely seen atrend in thematics. That is thebeauty of ETFs, that you caninvest into fairly niche markets and you know what youare getting. Continuing trendswill be in themes like disruptive technologies, cyber security and of course in ESG andclimate change related investments like clean energy andbattery technology and carbon reduction.BOB SMITHCIO & President, Sage Advisory ServicesThematically speaking, there will be a continuation of focusingon themes we saw begin to take centre stage in 2021 – fromclean energy, cyber-security, communications, fintech, blockchain and AI to the future of the workplace environment.We’ll continue to see a shift in the way companies dobusiness, how they attract and retain talent, and how theiremployee’s work. Another part of this is the supply/demand andsupply chain inefficiencies we’re seeing. Automation will play abigger role in helping make companies more efficient by leveraging AI and robotics.The technology and commodity sectors will become evenmore intertwined. As we move toward more tech-driven experiences like electric vehicles and clean energy – the need for rareearths and other industrial commodities to build componentsincreases. There are a lot of supply/demand imbalances herethat will be focused upon and exploited.We’ll may also start to see the impact of the Biden infrastructure bill. New bridges and rail lines and roads will require afocus on basic industries, and then suppliers of basic industrymaterials and machinery and so forth.www.etfexpress.com 12
Chapter 4DistributionI think the uptake will continue forboth US institutional and theEuropean adviser market. For thelatter, we have seen a clear increasein the adoption of ETFs for financialadvisers and wealth managers.Irene Bauer, Algo-ChainETF GLOBAL OUTLOOK REPORT Jan 2022www.etfexpress.com 13
DISTRIBUTIONWill the US see continued uptake of ETFs by institutions and will Europe see greater involvementfrom financial advisers and wealth managers?JAMES MCMANUSBOB SMITHChief Investment Officer, NutmegCIO & President, Sage Advisory ServicesGrowth in the European wealth management and financial advisory space will be drivenby the need to offer clients a lower cost, more efficient way to invest capital, alongsidethe continued underperformance at an aggregate level of active stock-picking strategies.Yes, and yes. There will be continued uptake of ETFs by institutions, particularly as assetmanagers change their traditional mutual fund line ups into ETF structures. ETFs are nowbecoming financial management tools instead of just an investment. However, we thinkthere are still new frontiers in institutions and how they utilise and apply ETF technology inthe risk management activity.In Europe, you’ll continue to see financial advisers and wealth managers take moreactive involvement. I think many private wealth managers are now running their modelsand executing those models through ETFs on their own.RUSTY VANNEMANChief Investment Strategist, Orion Advisor SolutionsI’m biased, but the ETF structure has many advantages (suchas liquid, low-cost market exposures) that institutions will continue to embrace. And packaged strategies of ETFs are likelyto continue gaining acceptance among financial advisers andwealth managers.IRENE BAUERCo-Founder, Algo-ChainI think the uptake will continue for both US institutional and the European adviser market.For the latter, we have seen a clear increase in the adoption of ETFs for financial advisersand wealth managers. What had been a niche market for advisers is now very much mainstream and ESG seems a contributing factor with – at least to me – clearer specificationsin the ESG guidelines for a specific ETF compared to mutual funds.JACOB HETZELHead of Distribution, Scalable CapitalSince we, at Scalable Capital, are convinced of ETFs as anefficient and cost-effective investment, our digital wealth management is based exclusively on ETFs and we are glad that it isa general trend in digital wealth management to increasingly relyon ETFs. However, it is still the case in Germany, for example,that bank advisers are focused on selling expensive active managed funds, in order to earn the highest commissions.ETF GLOBAL OUTLOOK REPORT Jan 2022MATT BRENNANHead of Investment Management, AJ BellWithin Europe, several operational barriers exist to the use of ETFs by financial advisersand wealth managers. This will stymie the growth in Europe. However, for new exposuressuch as ESG, I would expect ETFs to be adopted, as many of the strategies exist in ETFformat only. This may trigger a wider adoption by financial advisers and wealth managers.HENRY TIMMONSDirector of ETFs, Richard Bernstein AdvisorsIn the US, ETF growth will be driven by both retail and institutions continuing to recognisethe advantages embedded within the ETF structure. As for Europe, Europe is ahead ofthe US in terms of ESG though lags the US when it comes to adopting the ETF. I expectEurope to continue learning, leading to a better understanding of the ETF structure, andsoon embrace it as an investment vehicle, as much as US investors have,particularly as trading is brought on exchange.BEN SEAGER SCOTTHead of Multi Asset Funds, Tilney GroupI think this has been the gradual trend for a while, and it’s likely tocontinue. I also think we’ll start to see ever greater adoption byretail investors.www.etfexpress.com 14
Chapter 5New structuresThere are a few new frontiers thatcould be interesting for investors towatch. For example, you may see newlaunches in the structured financearea, real estate, and REIT sector aswell as in infrastructure with an ESGfocus packaged in an ETF.Bob Smith, Sage Advisory ServicesETF GLOBAL OUTLOOK REPORT Jan 2022www.etfexpress.com 15
NEW STRUCTURESThe rise of the semi-transparent ETF in 2020 and 2021. Will these new products continue to findapproval with investors in the US in 2022 or begin to appear in Europe?BOB SMITHCIO & President, Sage Advisory ServicesJAMES MCMANUSWe see the growth as limited. Most people are happy to buy thepassive product, which continues to be dominant. We are moreconcerned with knowing what’s in the box every day to understand the risk that’s being expressed in the ETF because we’retrying not to buy them on a one-off basis. The tax managementimplications are another concern for semi-transparent ETFs toovercome vs their traditional passive index peers.Chief Investment Officer, NutmegSemi-transparent structures still require regulatory hurdles to be met in Europe – and we see this as unlikely inthe next 12 months. There are existing products available in the European market that offer security selectionalongside daily transparency. We expect to see manymore of these products being launched in the coming 12months, given their success.BEN SEAGER SCOTTHead of Multi Asset Funds, Tilney GroupRUSTY VANNEMANI think the case is much stronger in the US where there are tax efficiencies to be had. Therealready a handful starting to pop up in Europe, but it’s difficult to see a catalyst for their large-scaleadoption.Chief Investment Strategist, Orion Advisor SolutionsI am a big fan of these ETFs. In short, there is a lot of both investment and distributiontalent behind them as more traditional mutual fund shops introduce or convert to ETFs.JACOB HETZELMATT BRENNANHead of Distribution, Scalable CapitalHead of Investment Management, AJ BellThe so-called semi-transparent ETFs are not available in theEuropean Union, due to differences in financial regulation in theUS and the EU. However, we are observing with great interestevery development in the financial products market.In Europe, I think we need to solve some of the operational issues that are hampering mass adoption of ETFsin the retail space first, before the semi-transparentstructure gains traction.MARY HAGERMANIRENE BAUERPortfolio Manager & Investment Adviser, Raymond JamesCo-Founder, Algo-ChainAnything that makes it easier to issue an ETF will gain traction going forward. Canada has beenan early-adopter of semi-transparent ETFs; however, anything that has traction
integrate into the portfolio context." Read the ETF Express Global Outlook Report 2022 to find the strong and diverse opinions of the investors in this vibrant industry. Beverly Chandler, Managing Editor, ETF Express An extraordinary year of growth 04 Interview: Lida Eslami, Head of Business Development, ETP and IOB, London Stock Exchange
