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BlackRock this month agreed to buy Credit Suisse's ETF business, with $17.6 billion of assets in 58 funds.The industry's rise has not been without controversy.
According to Dan Draper, who runs Credit Suisse's ETF business, the spark to spectacular growth came only after the dotcom bust had underscored the importance of diversification.
Earnings dropped in 2008, but they quickly recovered, and BlackRock was able to use its relative financial strength coming out of the financial crisis to snap up the iShares ETF business, which has been the engine of growth ever since and allowed it to more than double assets in the past decade to $6.5 trillion.
In April, it completed the acquisition of Guggenheim Investments' ETF business for $1.2 billion.
Barclays announced intention to sell its iShares ETF business is the best case in point I can think of.
Vanguard belatedly got into the ETF business in 2001 and now has $43 billion in these funds.
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Of the industry leaders, State Street and Vanguard built their ETF businesses from strong passive bases; BlackRock bought iShares in 2009.
Since the Multi-Strategy ETF opened for business in March 2009 it has earned a compound annual 4%, with a volatility a third that of the stock market.
Unlike the last bull market, when publicly-traded money managers delivered better returns than large-cap equities, ETF firms and businesses are a much harder win.
Sharon joined the Firm in 2016 from BNY Mellon, where she was Senior Strategic Advisor to the CEO and President of Investment Management, focusing on ETF and multi-asset business growth.
Coinbase's interest in an ETF, first reported by Business Insider earlier today, could mean that bitcoin price support continues even if the SEC rejects the VanEck proposal — a decision that's expected later this month, though has already been pushed back once.
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