United Kingdom
Exchange traded funds have enabled the flow of billions of dollars from Europe into US equities as investors piled into ETFs exposed to this year's huge US stock market rally, data from Refinitiv show.
Actively managed exchange traded funds are proving so successful in building scale that they are set to win a greater share of investors' cash - at the expense of both conventional mutual funds and passive ETFs, according to industry figures.
ETF ownership of Tesla rose to about 7 per cent of its market capitalisation last year, after it was added to the S&P 500 and its weighting increased on other popular indices.
Rising demand for "sustainable" investment prompted managers to change the strategy or investment profile of 253 European funds in 2020, helping to push regional assets invested in funds with an environmental, social or governance tilt to a record €1.1tn by the end of December, data from Morningstar show.
Investors who bought fallen angel ETFs at their lows in 2020 benefited from stellar returns by the end of the year, but a potential return to inflation could have a negative impact on this market in 2021, some industry figures say.