Total assets under management at EU-domiciled exchange-traded funds (ETFs) was €1.3trn at the end of June 2023, according to the PwC report “European ETF Listing and Distribution 2023” published on 20 September 2023. Photo: Absolutvision/Unsplash

Total assets under management at EU-domiciled exchange-traded funds (ETFs) was €1.3trn at the end of June 2023, according to the PwC report “European ETF Listing and Distribution 2023” published on 20 September 2023. Photo: Absolutvision/Unsplash

EU-domiciled ETFs have grown twice as fast as Ucits mutual funds over the past decade, while Luxembourg has been steadily losing marketshare to Ireland.

Assets under management at EU-registered exchange-traded funds (ETFs) collectively clocked a compound annual growth rate of 18%, compared to 9% CAGR for Ucits funds, between 2012 and June 2023, the consulting outfit PwC has . Its data showed that the number of ETFs domiciled in Luxembourg grew by 24% between June 2018 and June 2023, while the figure for Ireland was 127%.

Assets under management by Ireland-domiciled ETFs increased by 675% between 2013 and June 2023, compared to 405% for Luxembourg-registered ETFs, the PWC data showed.

Blackrock, including Ishares, had by a wide margin the most jurisdictions where its cross-border ETFs were distributed, as of 30 June 2023. It was followed by Amundi, Invesco and Fidelity.

The total number of ETF registrations in Ireland went from 7,274 in June 2018 to 16,496 in June 2023, while those in Luxembourg went from 3,991 to 4,939.

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More than two-thirds of ETFs focused on equities, while under a quarter focused on bonds.

Exchange-traded funds automatically track an index or type of financial asset, and can be bought or sold in real time on the stock market. Many investors put their savings in ETFs because they typically have lower management fees.

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