By Koel Ghosh
Global events this year have been transitional in nature, signaling change. Examples of significant developments include the result of the Brexit vote, with the UK officially set to leave the EU and the new prime minister, Theresa May, preparing for upcoming changes, as well as the 58th U.S. presidential election, which is empowering electors to choose their 45th president.
We are witnessing changes in passive investing as well. Q3 2016 reached a record high USD 3.408 trillion in ETF/ETP assets listed globally. Third-quarter statistics showed the global industry at 6,526 ETFs/ETPs, with 12,386 listings from 284 providers listed on 65 exchanges in 53 countries.
This growth in passive investing has been fueled by a number of factors, including technology, regulation, costs, and doubts about the persistence of active fund manager performance. Economies of scale and advanced technology have put fees under pressure. Increased transparency and regulation have…