The North American ETF market is the primary driver of global growth, accounting for more than two thirds of global ETF assets. It also leads the way in product innovation.
Strong growth is expected to continue over the next five years, but a number of things will need to happen if asset growth is to accelerate.
The regulatory environment continues to play a key role in shaping the North American ETF market. The approval of periodically disclosed active models is seen as the most important development over the next five years, followed by the approval of generic listing requirements for active ETFs.
Other areas, such as approval of an ETF rule to codify many of the areas currently requiring exemptive relief from the Securities and Exchange Commission, levelling the playing field with respect to the use of custom baskets, and the proposed uniform fiduciary standard rules for brokers and registered investment advisers are considered less important for the growth of ETFs.