5 ETF Myths Uncovered

August 17, 2023
  • Investor Services
Let’s look at the rapid growth of the ETF market and debunk the five most common misconceptions holding asset managers back.

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5 ETF Myths Uncovered

ETF assets globally could reach $30 trillion by 20331 and asset managers across the globe are eager to realize their benefits.

So what do you need to know? We debunk five common misconceptions about ETFs to get you started.

Myth 1: ETFs are Only for Passive Strategies

  • $36bn Global inflows into active ETFs reached to March 20232
  • 82% of investors plan to increase or maintain their exposure to active ETFs in 20233

Myth 2: ETFs will Reduce your Overall Profitability

  • ETFs complement and diversify existing business
  • Opens additional distribution channels
  • Can help to minimize loss of assets to another provider

Myth 3: ETF Launches are Costly

  • Leverage existing operating model
  • Use existing resources and staff
  • Explore outsourcing
  • Try alternative paths, like MF to ETF conversion

Myth 4: ETFs Require Daily Holdings Disclosures

  • Semi-transparent active (U.S.)
  • Other markets relaxed requirements (HK)

Myth 5: Distribution is Challenging

  • Direct assets from existing platforms into new ETF fund
  • Use performance history of MF following conversion to ETF
  • Work with existing distribution teams

How BBH Can Help:

BBH has deep subject matter expertise and experience in helping managers navigate the ETF landscape and address these challenges. We have consulted with 70+ managers to help them launch ETFs and would welcome a conversation with you.

Contact Us

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