BNY Mellon Refocuses Efforts in ETF Space

BNY Mellon Manhattan
BNY Mellon is keen on growing its exchange-traded fund (ETF) business and clearly understands it’s a scale business. The New York banking giant continues to watch its competitor BlackRock gain more AUM inflows from its iShares business. BNY Mellon expects further growth in the ETF space in the next decade as both retail and institutional investors like the Korea Investment Corporation (KIC) and large Canadian pensions utilize them. These cash-rich institutional investors often use ETFs in their internal equity portfolios. Affluent Baby Boomers have also adopted using ETFs in their portfolios, seeing value in cost efficiency, according to numerous published studies. For example, Pershing LLC, a BNY Mellon company, co-published a 2016 report called, The Evolving ETF: Using Exchange Traded Funds in Client Portfolios. The report surveyed a sample of more than 1,500 advisors in the U.S. and in other countries. The findings discovered, “more than two-thirds of advisors who use ETFs intend to increase their usage over the next 12 months, while 55 percent said that more than half of their clients already have ETFs in their portfolios,” according to the report’s press release.

BNY Mellon could take both an organic and acquisitive approach in expanding its ETF business. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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