ETFs: the Ideal Product for Private Investors?
In 2021, approximately USD 190 billion flowed into ETFs in Europe, according to the speakers. The growth in assets is thus around three times the average of the past five years. Furthermore, the speakers highlighted that about half of those inflows were invested in ETFs with an ESG focus.
In the webinar, ETFs are described as the most democratic investment of all, as all investors pay the same price, contribute to the same pool of liquidity - and thus all benefit. For this reason, ETFs are particularly interesting for private investors. While in the U.S. 50% of ETF assets come from private investors, in Europe, banks and asset managers are still responsible for the majority of funds. But private investors will also catch up in Europe, that’s what all participants agree on.
ESG: Trend Reversal or Breathing Space?
In the first few months of 2022, there were less inflows into ESG ETFs than the year before. According to the speakers, investors increasingly turned to more defensive investments such as gold or oil and gas due to the current geopolitical situation. In the long term, however, the trend toward ESG investments will continue, the panelists affirm.
The ETF outlook for 2022 is promising for all speakers: the ETF trend will continue, private investors will increasingly recognize and use the benefits of ETFs, and ESG ETFs will continue to attract a lot of new money.