In this special report, each of the featured winning firms from the ETF Express Europe Awards 2020 details what a great year 2019 was, as well as providing a little detail on how early 2020’s volatility has hit their businesses.
The 'European ETF Review 2020' special report comprises nine separate articles listed below, these can be read individually or as a sequence.
2019 was an extraordinary year for ETFs, with a huge up-swing in their popularity, but no-one predicted the early 2020 down-swing as coronavirus-led panic flooded through the financial markets. The ETF industry globally sailed into 2020, the 30th anniversary of the origin of ETFs globally, the 20th anniversary of European ETFs and the 10th anniversary of the ETF Express Awards, completely unaware of the drama lying ahead.
State Street Global Services: Best ETF Fund Administrator & Best European Smart Beta ETF Provider – Ciarán Fitzpatrick, head of ETF servicing for Europe for State Street, explains that the firm supports 67 per cent of the European market for ETFs, 84 per cent of those registered in Ireland and 47 per cent of those registered in Luxembourg, the two largest domiciles in Europe for ETFs.
Invesco: Best US Equity ETF Provider – Invesco Asset Management won Best US equity ETF provider for 2019, a year that was, Chris Mellor, Head of Equity and Commodity ETF Product Management, Invesco, says: ‘the best year ever’. The firm raised around USD11 billion in net new assets, pushing it up the rankings in Europe to number three.
Optiver: Best European Liquidity Provider/Market Maker – Q&A with Andrew Meyer, Partner & Head of Delta 1, Optiver.
Nikko Asset Management: Best Asia Equity ETF Provider – Phillip Yeo, Joint Global Head of ETF Business at Nikko AM, explains that over 2019, the firm saw assets under management in ETFs grow by 30 per cent, up to USD81 billion. Growth was organic and on the back of new assets flowing in, he says. “2019 was a good year for equities and markets as a whole, with organic growth but also the momentum of investors being interested in ETFs and looking for no hassle exposure to the markets.”
STOXX: Best European Index Provider – Qontigo´s index provider, STOXX had an extraordinary year in 2019, not least in its September merger with US-analytic firm Axioma to become Qontigo. The resulting company is majority owned by Deutsche Boerse and has the index capabilities of STOXX and DAX, as well as the analytical skills of Axioma.
London Stock Exchange Group: Best European Exchange for Listing ETFs – This year of many anniversaries for ETFs has seen London Stock Exchange Group celebrate its 20th anniversary in listing exchange traded products. Lida Eslami, head of business development for ETPs and IOB, explains that the first ETF in London was listed in 2000, focussed on the FTSE 100.
Tradeweb: Best ETF Platform – For electronic platform Tradeweb, 2019 was a milestone year for European ETF trading. Adriano Pace, head of Equities (Europe) at the firm, says: “We saw total notional volume exceed EUR360 billion, up 43.5 per cent on the year before, while the number of institutional firms trading European ETFs on our platform grew by more than 10 per cent.”
IHS Markit: Best ETF Back Office Tech Provider – IHS Markit’s DeltaOne team is recognised as the Best ETF Back Office Tech Provider in the 2020 European ETF Express Awards, reflecting its status as a pioneering data aggregation provider in the market. With more than a decade of expertise in Europe’s ETF industry, IHS Markit serves a robust ecosystem of firms, including the majority of sellside institutions, delta one desks and other leading market makers.