www.pwc.lu European ETF Listing and Distribution Poster September 217 Global Fund Distribution
Market overview Evolution of EU-domiciled ETFs AuM by country of domicile and total number of ETFs 6 1,497 1,56 16 5 1,293 1,336 1,351 1,411 49.8 567.6 14 1,161 12 4 962 42.2 28.5 328.3 1 AuM EUR billion 3 2 59 716 148.4 196.7 62.4 191.2 68. 233.3 95.6 274.7 128.8 288.3 136.5 222.3 81.2 81.8 93.4 8 6 4 Number of ETFs 1 95.4 23.8 2.7 25.5 17.6 7.8 43.3 33.9 35. 23.9 12.3 47.5 41.8 27.3 17.7 42.6 31.7 3.5 18.4 46.5 36.5 35. 19.7 46.6 39.9 42.9 16.5 49.4 42.3 43.3 16.8 65.1 47.4 4.1 7.2 82.9 52.9 58.1 5.3 4.9 2 28 29 21 211 212 213 214 215 216 217* Germany France Luxembourg Ireland Others Total Number of ETFs Source: PwC Market Research Centre based on Lipper LIM data - end June 217 * Data as of end June Most used underlying indices by AuM 19 9 87.2 Number of ETFs 8 EUR Billion 7 6 5 4 3 2 6 88 5.2 49.3 82 33.8 33 4 26.6 25.3 35 21.3 54 29 88 19.5 18.9 18.2 1 S&P 5 EURO STOXX 5 MSCI World STOXX Europe 5 MSCI EM Emerging Markets MSCI EM Emerging Markets S&P GSCI Precious Metals Topix DAX 3 S&P GSCI Source: PwC Market Research Centre based on Lipper LIM data - end June 217, according to Technical Indicator Benchmark in Lipper
New ETF 216 trends Top European Stock Exchanges AuM EUR billion 1,156 5 453 475 1,137 1,135 45 1,71 912 38 41 4 894 35 32 782 3 726 775 694 25 2 15 52 1 221 215 5 45 37 148 178 28 123 26 14 2 4 41 9 48 9 3 2 3 1,2 1, 8 6 4 2 Deutsche Börse SIX Swiss Exchange AG London Stock Exchange Borsa Italiana Euronext Number of ETFs Börse Stuttgart Irish Stock Exchange LuxSE Nasdaq OMX Wiener Börse BME Spanish Exchanges Warsaw Stock Exchange 2% 6% 2% 12% 8% -3% 2% -15% 2% New -81% % Variation 216-217 Number of EU- domiciled ETFs listed on official and regulated markets (216) Number of EU- domiciled ETFs listed on official and regulated markets (217) Estimated AUM (in EUR bn) of ETFs listed on official and regulated markets 217 Source: PwC Market Research Centre based on EU Stock Exchanges data, end June 217 European ETFs cross-listing footprint* Percentage based on the number of ETFs 2% 6 and more listings 31% 1 listing 21% 4-5 listings 46% 2-3 listings * Cross-listing on top European stock exchanges Source: PwC Market Research Centre based on EU Stock Exchanges data - end June 217
Cross-border distribution Percentage of the replication methods Physical replication 78% Synthetic replication 22% Source: PwC Market Research Centre - end June 217 ETF distribution footprint Total number of cross-border ETFs as of end June 217 21% 14 + markets 26% 3 to 4 markets 24% 11 to 13 markets 12% 8 to 1 markets 17% 5 to 7 markets Asset Classes Breakdown based on AuM 4% 2% 1% Source: PwC Market Research Centre based on Lipper LIM data - end June 217, number of markets of distribution (including the domicile) 25% 68% Equity Bond Other Commodity Money Market Source: PwC Market Research Centre based on Lipper LIM data, end June 217
Target markets for ETFs distribution ETF distribution Domiciles Ireland Luxembourg Jersey France Other Total Number of Registrations as at June 216 Number of new registrations Total Number of Registrations as at end June 217 EUROPE Austria 51 358 2 82 49 1,3-11 992 Belgium 74 39 55 21 18 191 16 27 Denmark 34 138 119 38 19 618-618 Finland 345 161 13 56 23 667 21 688 France 534 259 257-35 1,39 46 1,85 Germany 577 366 269 2-1,44-28 1,412 Ireland - 114 77 - - 218-27 191 Italy 443 236 235 169 33 1,113 3 1,116 Liechtenstein 53 54 - - 19 15 21 126 Luxembourg 431 - - 2 1 443 18 461 Netherlands 518 227 115 129 4 1,29-1,29 Norway 277 141 75 38 23 546 8 554 Poland - 3 - - - 3-3 Portugal 145 3 93 - - 212 29 241 Russian Federation 2 - - - - - 2 2 Spain TOP MARKET 476 219 125 98 26 855 89 944 Sweden 439 219 125 56 2 842 17 859 Switzerland 44 227-89 4 749 11 76 United Kingdom 632 269 116 176 25 1,142 76 1,218 Total number of registrations - EUROPE 6,155 3,33 1,766 1,172 38 12,215 291 12,56 ASIA PACIFIC Australia 4 - - 1-4 1 5 Hong Kong - 6 - - - 17-11 6 Japan 1 1 19 - - 2 1 21 Singapore TOP MARKET 7 77-4 12 15 13 163 Total number of registrations - ASIA PACIFIC 75 84 19 5 12 191 4 195 AMERICAS Chile 38 27-31 7 17-4 13 Mexico 2 - - - 1 2 1 3 Peru 33 1-3 1 41-3 38 United States TOP MARKET 1-1 - - - 2 2 Total number of registrations - AMERICAS 74 28 1 34 9 15-4 146 Africa South Africa 4 - - - - - 4 4 Total number of registrations - AFRICA 4 - - - - - 4 4 Total 6,38 3,145 1,786 1,211 41 12,556 295 12,851 Source: PwC Market Research Centre based on Lipper LIM data, end June 217
Top 2 cross-border ETF management groups Ranking Management Group Total # of countries of distribution at group level (including domicile) Austria Belgium Denmark Finland France Germany Ireland Italy EUROPE Jersey Liechtenstein Luxembourg Netherlands Norway Poland Portugal Spain Sweden Switzerland United Kingdom ASIA PACIFIC Hong Kong Japan Singapore LATIN AMERICA Chile Mexico United State AFRICA South Africa 1 BLACKROCK - ISHARES 22 2 DEUTSCHE BANK - DB X-TRACKERS 2 2 ETF SECURITIES 2 4 VANGUARD GROUP 18 5 LYXOR 17 6 SOURCE 16 6 UBS 16 8 BNP PARIBAS 15 8 STATE STREET 15 1 PIMCO 14 11 AMUNDI GROUP 13 11 FIRST TRUST 13 13 MORGAN STANLEY 12 13 VANECK 12 15 NOMURA 11 16 HSBC 1 16 WISDOMTREE 1 18 INVESCO - POWERSHARES 9 19 OSSIAM 8 2 FIDELITY INTERNATIONAL 7 Source: PwC Market Research Centre based on Lipper LIM data, end June 217
Minimum number of distribution countries to enter the top 1 cross-border ETF management groups 14 Percentage of European ETFs listed on 2 or more stock exchanges 69% 23.4% Compound annual growth rate of EU domiciled ETFs AuM since 28.23% Average TER of bond ETFs in Europe.39% Average TER of equity ETFs in Europe 12,851 Cross-border registrations of European ETFs
PwC s Global Fund Distribution practice: ETF Services Supporting your ETF distribution Since 28, global ETF assets have grown at a compound annual growth rate (CAGR) of 19.2%. In contrast, EU domiciled ETFs experienced faster growth at 23.4%. As of end June 217 AuM of EU domiciled ETFs surpassed the half billion mark, standing at EUR 567.6 billion. But does this data confirm a renewed appetite from investors and a strong expectation of the global economy from such investment vehicles? And if so, could this continued growth translate into greater focus from regulators on this product set? To discuss these points and review other additional data shown within this publication, please contact any of our ETF experts. Your contacts José-Benjamin Longrée Partner, Global Fund Distribution Leader +352 49 48 48 233 jose-benjamin.longree@lu.pwc.com Steven Libby Partner, Luxembourg Asset & Wealth Management Leader +352 49 48 48 2116 steven.libby@lu.pwc.com Follow us Christophe Saint-Mard Partner, Global Fund Distribution +352 49 48 48 2134 christophe.saint-mard@lu.pwc.com Dariush Yazdani Partner, Market Research Centre Leader +352 49 48 48 2191 dariush.yazdani@lu.pwc.com Carsten Brengel Partner, Luxembourg ETF Leader +352 49 48 48 2187 brengel.carsten@lu.pwc.com 217 PricewaterhouseCoopers, Société coopérative. All rights reserved. In this document, PwC or PwC Luxembourg refers to PricewaterhouseCoopers, Société coopérative which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. PwC IL cannot be held liable in any way for the acts or omissions of its member firms.