New analysis from HANetf reveals strong growth of Swiss ETF market
Analysis of industry data by HANetf, Europe’s first independent white-label ETF and ETC platform, reveals that between December 2018 and December 2019, assets in ETFs listed in Switzerland increased by 42.5 per cent.
The corresponding figure for the Deutsche Börse, which is the market leader in Europe in terms of the number of listed ETFs and trading turnover, is 35 per cent.
HANetf’s analysis also reveals the number of new ETFs listed on the SIX Swiss Exchange in 2019 and 2018 was 50 per cent higher than for the period 2017 and 2016.
HANetf believes growth in Switzerland’s ETF market could increase even further because the country’s strong reputation for political and economic stability is particularly appealing in the current global environment, and this will attract more international money. Switzerland is the largest wealth management centre for international assets, but its wealth managers struggle with falling profit margins – between 2013 and 2018 pre-tax profit margins of Swiss private banks decreased by 17 percent - In consequence, HANetf says they are increasingly using ETFs as they are more cost effective and efficient than mutual funds.
HANetf argues that wealth managers and other investors also find the ETF sector more attractive due to its growing focus on innovation and its ability to deliver new investment strategies, and because confidence in the market has increased further because in terms of fund structure and liquidity, ETFs performed well during the significant recent Coronavirus fuelled market volatility.
Hector McNeil, co-founder and co-CEO at HANetf says: “The Swiss ETF market has enjoyed staggering growth in recent years, and we believe the scene is set for this to continue or even accelerate.
“The Swiss asset management market overall is also one of the most sophisticated and advanced in the world, and there is growing demand from investors there for access to new innovative investment strategies that can deliver growth but also further diversify portfolios.
“We’re delighted to bring the first cannabis and cloud focused ETFs to the Swiss market. Our five ETFs that went live on the SIX Swiss Exchange in June offer investors transparent and liquid exposure to long-term social, medical and technological megatrends.”