25 January, 2022
Since their introduction in 1993, exchange traded funds (ETFs) have become one of the most popular, disruptive and widely discussed product innovations in the asset and wealth management industry. PwC's latest report, ETFs 2026: The next big leap, explores the latest trends in global and regional ETF markets and the issues that are expected to drive ETF growth over the next five years.
The next phase of ETF growth and innovation will include active strategies, crypto ETFs, and environmental, social and governance (ESG) focused products, combined with expansion into new markets and online distribution platforms. The anticipated growth in assets under management over the next five years opens up immense opportunities for existing ETF managers and new entrants alike.
However, the next big leap in the scale, reach and investor choice will also bring heightened competition, complexity and continued regulatory scrutiny. The winners will be those who innovate, differentiate and deliver standout returns while retaining the transparency, fee structures and other core attractions of ETFs.