BNY projects $30 trillion in ETF assets by 2030

BNY Investments projects global ETF assets will pass $30 trillion by 2030. ETF Trends reported on Nov. 13 that the firm's investment team names active ETFs and fund conversions as the main growth engines.

Ben Slavin, BNY's ETF global industry head, said the industry is "hitting record highs across virtually every metric we track." Slavin said: "We're seeing accelerating adoption globally, continued momentum in active ETFs, growing interest in ETF share class structures, and innovation across asset classes." The forecast places the constraint in the primary market, where daily creation and redemption must work across settlement cycles and liquidity that do not line up.

For advisors using active or converted ETFs, the forecast puts creation and redemption capacity on the due-diligence list alongside strategy and fee. The questions are operational: who builds the basket, who executes it, and how a less liquid holding gets created or redeemed. An index-only book rarely raises them.

BNY's platform answer is ETX, which combines portfolio construction, basket customization, execution and servicing in one system, reducing the handoffs between settling on a basket and trading it.

BNY has more than 20 U.S.-listed ETFs, giving it a direct stake in the market it forecasts. Its most recent launch was the Power Ecosystem ETF (BGRD), which listed at 50 basis points on Nov. 10, as ETF Daily previously reported.