Sector assets stood at around $387 billion at the start of the year, and are set to more than double over the next five years as the market plays catch up with its US counterpart.
iShares expects the the surge in growth to be partly driven by changing distribution methods across Europe such as in the case of the UK, where the implementation of the RDR, has resulted in more advisers favouring low-cost passive investments.
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Wiedman added: "The growth of the ETP industry has much further to go. Compared to the market size of other investment vehicles, in segments such as securities, mutual funds and derivatives, ETPs have huge headroom for growth, even in the more mature markets of Europe and the US. It’s a very exciting time for investors and providers alike."
Finally, the European ETP category has traditionally been considered as the ‘younger sibling’ to the US market, but not for much longer.
"European investors are starting to see ETPs as mainstream investment vehicles, particularly as some of the structural limitations that have traditionally made them less accessible to investors are being resolved," he said.
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