Deutsche Börse's ETF Forum, which was held for the first time in 2008, has become an institution. The one-day event at the Meliá Frankfurt City Hotel was online, and the lecture theatre itself was very well-filled. This was to be expected, as ETFs are currently the booming sector in the capital markets, and interest is naturally high where the money is flowing.

However, Deutsche Börse once again succeeded in putting together a programme with top-class speakers, including industry experts and the renowned economist Stephen King, Senior Advisor at HSBC and author of several ground-breaking studies.

However, two things were different this year at the must-have event for the ETF industry. Firstly, it was the day when Germany tests its warning alert system, so all the mobile phones were ringing at exactly 11 a.m. when the ETF Forum was due to start, and some were still ringing afterwards. Secondly, the welcome address and the two largest panels were held in English for the first time. Michael Krogmann, Head of Cash Market Business Development at Deutsche Börse, who welcomed the participants, saw this as a step towards internationalisation.

Krogmann is convinced that the ETF industry will continue to grow strongly, as were all the other experts who spoke afterwards. Krogmann emphasised three growth drivers: firstly, artificial intelligence, which is influencing the entire economy, and which is also providing a growth spurt for money invested in ETFs. Secondly, he cited „the continuous growth of retail investing“ in ETFs. The number of retail investors investing in ETFs has tripled over the past five years. The number of ETF savings plans has risen from 1.2 million in 2019 to 4.3 million at the end of May. And retail investors have saved a total of 120.5 billion dollars. Added to this is the pension theme, for which the ETF industry is exceptionally well equipped.

Krogmann named active ETFs as the third growth driver, combining the advantages of ETFs, such as constant traceability and transparency, with those of traditional investment management. There are a lot of new products and opportunities here in particular. „It is essential for the ETF industry to stay ahead of the curve and remain innovative,“ said Krogmann.

Deutsche Börse has not been standing still, and has implemented further innovations in the ETF segment. For example, the Xetra order book has been continuously developed, so that large orders can now be executed without having a significant impact on the market. The aim is also to offer retail investors the best execution at a low cost. Savings plans are already being executed free of charge.

The latest figures show that the ETF industry really is booming. According to Vanguard, inflows into European Ucits ETFs totalled a whopping 21.8 billion US dollars in August. Equity ETFs are in particular demand this year, with inflows totalling 113 billion US dollars so far. Incidentally, 2,211 ETFs are already traded in Deutsche Börse's XTF segment.

The panel with leading industry representatives at the ETF Forum also showed that the European industry is signalling significant growth. The ETF professionals repeatedly pointed out that the ETF share of fund assets in the USA is much larger than in Europe, and that trading in ETFs is also much busier there. Compared to the use of ETFs in the USA, the growth potential in Europe is immense.

According to Sander van Nugteren, Managing Director at Blackrock, the industry is benefiting from the increased use of ETFs by institutions, and the proliferation of model portfolios. Transparent and efficient ETFs are the first choice for the digitalisation of investments. The costs of the products must be as low as possible, which speaks in favour of ETFs. The younger generation, in particular, wants to invest digitally and buy ETFs.

Gregoire Blanc, Head of Capital Markets & Liquidity at Amundi, emphasised the growing trust in ETFs, which is leading to further inflows. He noted that ETFs have proven their worth in the crises of recent years, as a unique financial instrument with unique advantages.

Jamie Hartley, European Head of Capital Markets at DWS, sees enormous growth potential for fixed-income ETFs in particular. In the retail business, the numerous partnerships with direct banks and brokers have certainly paid off for DWS.

For Paul Young, Head of ETF Capital Markets Europe at Vanguard, the opportunities in Europe for solid growth in the ETF industry are significant. However, he pointed out that there is still a lack of harmonisation of capital market practices in Europe.

The ETF Forum was rounded off by several specialist presentations. Jan Altman from Bitwise, for example, reminded the audience that Bitcoin ETPs have long had recognition in Europe. There are 19 European Bitcoin spot ETPs with 100% backing alone, with assets under management totalling 4 billion euros.