Research reveals planned future use of different types of ETPs

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London, 29th June 2015: New research from Source, one of the largest providers of Exchange Traded Products (ETPs) in Europe, reveals that those investing in ETPs on average use three to four different types, and 78% plan to maintain or increase their exposure to these products during 2015.

The findings reveal that 71% of these investors currently have exposure to tracker ETPs, and 37% plan to increase this during 2015, compared to just 5% who intend to reduce their exposure here. The corresponding figures for actively managed ETPs are 40%, 10% and 4%.

Just over one in three of those interviewed claim to use risk controlled ETPs, and 13% intend to increase their exposure to these vehicles, compared to just 3% who anticipate they will reduce it. 

The survey was conducted among 559 professional investors and advisers based in 11 European countries who invest in ETPs. Each of those interviewed are responsible for at least £50 million worth of private client investments or £100 million of institutional assets.

Peter Thompson, President of Source, says: “The ETP market is incredibly creative and is constantly pushing back the boundaries of innovation. We have just announced that together with FTSE Russell and Research Affiliates, we have created the FTSE RAFITM Equity Income Index Series, a new family of indices targeting high dividend-paying stocks which have also been screened to favour sustainable income.

“It is clear that innovation, coupled with the fact that ETPs are often very liquid and often have very competitive fees, is fuelling growing demand for these products.”

Source UK Services Limited is authorised and regulated by the Financial Conduct Authority in the UK.