World’s Hottest Funds Make No Money for Most Managers in Europe

  • Vanguard data shows two-thirds of ETFs just aren’t big enough
  • ETF industry in the region to double by 2020, Morningstar Says
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Being in the hottest part of the investment universe doesn’t necessarily pay.

Exchange-traded funds, or ETFs, based in Europe have doubled assets in the past five years to 550 billion euros ($584 billion), though the market remains so fragmented that less than a third of them are big enough to make money for the manager, based on figures from U.S. company Vanguard Group Inc.